Thanks Space and snowball44. I see we are into the 30m to 240m phase given the charge in last years accounts. Shouldn't be too long before the 15% drops to 6%. In any event, given profits are being made. Do I really care? I was thinking on the way home how much I would get if VOG declared 1m div. it added a skip to my step! I guess MrJimV is right about the no of shares. I know we are a growth company and will be using profits. But it won't be long until 1m is easily distributable.
Bigsmoke re your post of 19.21. Yes I had seen the sliding scale mentioned in the note to the accounts. In that connection, the RNS clearly states a sliding scale averaging 6.8% so there is no problem there. I see SpaceHoppa has already accurately answered your second point.
I am not 101% sure Mr Big. I assume the CHL royalty %, like Mr Grims %, is just for the revenue derived from gas from the Logbaba field. CHL, I presume, have no claim on infrastructure, or it's use, & if no gas is used from Logbaba, ie Matanda gas is used, then they get 0% from sales. Rsm, do however, have an interest in the facilities.
Glorious leader Mr Foo, may have found a way to essentially, sideline both Rsm, & CHL!
Good to hear you, SpaceHoppa. Good point. Still $1m is not HSS stuff. So, life of field is what? The P1 gas? The P2 and P3 gas too? Not the revenue from the use of pipes? Not mantanda gas through the infrastructure?
Vog, did not buy a rig back in 2009, it had some ''drilling equipment'', whatever that is, however certainly not a jack-up drilling rig. CHL, aka, Mr Foo's trust, have a royalty agreement for the life of the Logbaba field, as far as I know. Happy to be corrected of course!
SB44, the RNS appeared to state that the CHL interest is a 6.8% (fixed) royalty, but the note in the 2015 accounts state that it is sliding scale..."Sliding scale production royalty to CHL ranging from 0-15% of GDC revenue from the Logbaba project for the life of the Logbaba field (0% up to $30 million of cumulative GDC revenue from the Logbaba project; 15% of cumulative revenue greater than $30 million up to $240 million; 6% of cumulative revenues in excess of $240 million)". Maybe 6.8% is the expected royalty over the life of the project.
The payment for the 58% of PRM’s shares in CHL was $2.5M "and drilling equipment with an estimated value of US$1 million". Are we saying that VOG sold its drilling equipment in 2011 to get 1/3 of CHL to now take a $26M bank loan to hire new drilling equipment which seems to take forever to arrive.
SB44, by 65% do you mean the 2/3 remaining interest in the 6.8% CHL royalty interest? Also, the RNS stated that it was "in its [VOG's] 95 per cent." that was before the arbitration award. So, are you reading that as 6.8% CHL royalty interest in VOG/RSM 95%/100% stake (don't think SNH ever elected for its 5%) or VOG's 65% interest (post arbitration) in Logbaba?
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