Hmmm, interesting use of terminology as it now 3/15, 'due to be built'.. Wonder how that melds with Kenny Cai's/TS Offshore/FTS Derrick's wish end 1/15 to convert new build CJ50's to CJ54's more suited to North Sea use.. Whatever still better to get a rig ex KFELS construction.
'Once again, I strongly encourage shareholders to read the information and updates provided by the Company, rather than uninformed sources. We will inform the market when we have relevant and material news to share, as would be expected and in accordance with our public company reporting obligations.'
At first read there is a clear admittance at last that the low POO is severly effecting contract and finance negotiations, as many had suspected. The FDP appears to be nowhere near ready for submission as the company admits 2015 is now dedicated to contracts and finance negotiations. It also appears that the rig has not yet begun to be built? Any mention of revised ES submission? Let's see how the market reacts to these seemingly new delays.
While it is certainly there and can be considered a last ditch option one would think even for these guys FDP submission has to be close now, so there is adequate cash or near cash in the company to cover expenses until then. Thereafter this should not be an issue as FDP will have covered future funding.
If you'd looked at the PDF of the recent, in RNS terms, Q3 results of 17th November Mike you'd have seen this;
"As at the date of this MD&A there remains unused Equity Line Facility (“ELF”) capacity of £30.8 million, available until July 2017, to provide the Group with additional sources of capital, if required, to be used at its sole discretion."
In fact you'll also note that XER include the ELF when stating it has enough capital available for the foreseeable future.
Now I'm not suggesting this will ever be used, but XER did extend it by 3 years last Spring so I think it's safe to assume that it's an option, if needed, that's never been formally ruled out. Of course debt finance to support what partners bring is preferred - and has been stated as such. My point is quite simple, that stating things have been ruled out when the statutory evidence proves otherwise is... well, unwise, and wrong.
We were discussing equity funding going forward,..not what has clearly already been agreed. Mark suggested that the RNS's had described it an a specific option,... and what I am saying,.. is that I can't find that in any of the RNS's at all. I have simply as him him to post the link to the information that he has referred. I suspect he can't,... because, contrary to his assertion,.. as far as I can see the RNS's did not say anything about the issue of further equity to fund Phase 1. ,,, they speak far more generally. No matter.
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