When XER was a private company it had 218 fully paid up shares with a nominal value of £1 each. As a public limited company requires a minimum share capital of £50,000, the company was required to issue another 49,782 shares each with a nominal value of £1.
Well you for one until ceilingcat and myself corrected you seemed to be under the impression this FPSO was for XER. The whole thing is tied in together, they can't announce anything on the major units because contracts would be dependent on the funding news whcih has to come first.
The issue of why XEL bought the minimum required capital of 50,000 shares in XER plc is simply because that was the minimum number of shares required to convert from a ltd to a plc and as XEL is the parent company of XER, who else would hold the shares?
The more interesting question, which as far as I know no one has ever asked Xcite, is why they reincorporated XER as a plc. It seems logical to assume it was done as part of the bond deal giving the timing, but there is nothing as far as I am aware in any of the publicly available bond documents that makes it a requirement.
It made a strong impression when we at the end of last year were able to announce entering into a License and Service agreement with a major oil company for a prospect in the UK sector of the North Sea. We have been working on this project and with this client for more than two years and even though a final investment decision is yet to be made, the selection of our FPSO concept for this field is a very important confirmation of the competitiveness and suitability of our design.
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