David, like i say - if i were Kevin why not just buy back all the shares and delist from AIM, and they would still have several million left over to spend on drilling. In all seriousness though it would be nice to buy a percentage back and establish a strong base above the 45p placing.
Thanks HKRBob yes that makes sense, I also believe that we applied for an EA for blocks 5 & 6 and did not get them, and that might of been part of the delay in the approval process.
The question is if we got another Exploration license for these blocks, what would be required with regards to appraisal wells and how would this be funded, because I assume the cost will be in excess of $50M.
I assume also that the additional appraisal wells to be drilled in block 7 might give more of an indication as to whether Blocks 5 and 6 are worthy of further exploration, and I suppose it is possible that if they are deemed to be, then Lukoil and New Age might perform a similar Farm Out deal on these blocks under an exploration license and get a much better rate because they will fund the appraisal wells? I cannot see why else Bowleven would want to apply for a new PSC, because the last thing they want to do is commit all of their new found wealth to drilling very expensive appraisal wells. If they did we could end up in a very similar position with regards to waiting for another EA and Farm Out deal to go through to refinance them again!
Lukoil are farming into the full Etinde permit (All 3 blocks). If the deal was finalised tomorrow they will have block 7 with EA and blocks 5 and 6 with an exploration licence that runs out in a couple of months.
My understanding is that the EA when submitted was for all 3 blocks, but the EA was awarded for block 7 only - This was known prior to Lukoil signing, so there will be no adjustments to the deal and no problems with them on this.
The exploration licence for blocks 5 and 6 (as we didn't get them included under the EA) are due to expire on the 31st December 14. At this point Lukoil lose their percentage in blocks 5 and 6 (as do ourselves and NA).
I assume that this is all part of the deal with Lukoil and New Age that they back off and let us apply for a new exploration licence for blocks 5 and 6 and that should everything go to plan we get 75% whilst NA get 25%.
Everything getting hammered at the moment, they really need to pull their finger out or the good news is going to give us a 100% lift which will probably get us to 50p whoopee doo, remind me why I invested 4 years ago on a dead cert, really wearing thin now promises around every corner with every bit of news only it never happens. Lets hope we are at the end of the line for bad news. gla
And KH still has a job and whats more him and his buddies will carry on collecting their vast salaries without any questions asked about their sub standard performance. Any good MD/CEO would not have sat back watching the PI getting shafted. I would love to know what RH brings to the tale!!
I asked them a question about blocks 5 and 6 and the confusion around whether the Farm Out agreement included them. The reply I received makes very little sense to me, and I would much rather they actually made the effort to answer my questions rather than citing RNS's which are far from clear.. in case anyone happens to be interested in their response:
"Thank you for your enquiry. Regarding blocks 5&6 the announcement on 24 June 2014 relating to the farm-out transaction noted that ‘The farm-out transaction relates to the Etinde Permit (currently comprising blocks MLHP-5, MLHP-6 and MLHP-7)’. On 4 August 2014 we announced the Exploitation Authorisation (EA) had been awarded over block MLHP-7. Following award of the EA, the exploration phase for the blocks of the Etinde Permit not covered by the EA (namely blocks MLHP-5 and MLHP-6) will be due to expire towards the end of December 2014. The Special OCM that considered the EA also indicated its support for a new production sharing contract (PSC) covering these blocks. The process regarding a new PSC application is being progressed and participating interests are currently envisaged as Bowleven 75% and NewAge 25%."
I have pushed back to get further clarity. Not sure if anyone on here understand this better than I do. For example if a PSC is granted on blocks 6 and 7 what will that entitle Bowleven to do on these blocks? I am assuming the results from the appraisal wells to be drilled in Block 7 might help them to decide what next steps to take with 5 & 6??
Apologies if this question demonstrates my lack of understanding in the terminology they use :) But if anyone can help it would be appreciated.
Anyway I have pushed back to Bowleven for a better explanation, I wonder if I will get one!
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