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An interesting journey there too, I agree. However, we seem to have more evidence of oil in place than does BPC or have I missed something? (probably)
12:46 Spike thanks, contrarily to what we see at the moment here I was always surprised at the excitement BPC generated when they signed an exclusivity agreement (which ultimately resulted in nothing), sentiment is a strange beast.
14:34 How should I know? Met the man for 20secs at London presentation before he made his excuses and went off to sell CTAG I imagine, never understood his following very few people can be experts in so many fields of business but some took his every word as gospel.
Does he even live in Aberdeen or Aberdeenshire?
12.16 - Aberdeen I should think! :-) VGLA
Brom, the point being with a Cluff is that they had to raise capital to work alongside shell for a proportion of the license given shell took 50% of one of them, with well costs being split between both parties
Just noting that similar deal with shell and Cluff could be on the cards here, and without any proven drilling, it may the farminee wants 88E with skin in this too. Just open thoughts
For your edification :
"In the trenches" is a common English expression. Originally this was used literally to refer to soldiers engaged in Trench warfare, however it is now commonly used to refer to somebody engaged in a long, difficult, and unrewarding task.
~~~ `If the cap fits` .
Its come down to posting ... poems.....or song lines .... goodness me
Where is Aberdeenman?????????
What trenches ????
I did read the RNS spike, although a deal is not done until the contract is signed.. However, I’m optimistic that we have to get something right, law of averages and all that.
I just hope that permitting ramping up means we are drilling 2 or more wells in winter. considering we already had Charlie and bravo permitted they would only need amending slightly, not sure if those amendments would class as ‘ramping up’ so hopefully there’s an extensive drilling program on the horizon.
10:40 we can all imagine the best and worse case scenarios and some can and will put their own spin on it as well, based on current trading and SP it appears the board has very little current influence either way :-))
Not sure what Cluff has to do with this just as on the other side never understood why Cove Energy was so often cited, useful as background but can not predict what will happen here.
I probably agree with.
"But, the deal has been agreed now. We mere PIs just don’t know the terms."
"We don’t know, and all guess work on my behalf."
Desmond you are making out like this is a wildcat acreage in the middle of nowhere. Huge finds have been make a few miles away, in the same geological sequences, where we have identified multiple world class leads next to production facilities, using 3D which is supported by historic drill data.
Also you can’t just easily dismiss a lot of demand from multiple parties as irrelevant. Taking your flawed analogy, the used car would have significant interest due to the good quality after being fully accessed by highly qualified mechanics, and would go to the highest bidder with the seller able to set the terms of the deal.
last RNS straightforward and no caveats, transfers of w.i. are easily handled.
Nothing in life (apart from entry and exit) is guaranteed, but IMHO nothing to get worried about.
Its only taking a worrying amount of time if you worry about it.
Less worrying to assume its taking the normal amount of time for the farmout partner we're dealing with and the deal we have with them.
Desmond did you read the 26th June rns? Deal done. We just haven’t been told terms yet
Everyone is counting their chickens before they’ve hatched here. There’s no guarantee the farm out will actually happen until we see an RNS saying it’s signed, sealed and delivered! Taking a worrying amount of time now....
Superb... To get that amount of acreage on the prolific NS for such a small outfit is amazing from having the great PB on board (sadly missed} and a straight talking DW. I'm a happy man. Just need patience.. You?
Neversatisfied i guess you could flip that however...
A) what real success
B) just because we had a lot of interest it doesn’t mean it’s a great deal, just as you may have a lot of interest in selling your car....doesn’t mean everyone is giving you the deal you want, simply “what they think it’s worth”. So we don’t know if we’ve had to pick the best of a “not ideal bunch” (not saying we have but it’s an option)
Imo can’t see someone lying substantial back costs and a free carry on acreage unproven/un drilled
But, the deal has been agreed now. We mere PIs just don’t know the terms.
Playing devils advocate, does the market already know hence we think “no leak” but the leak is what we have now as in the market knows the deal and values us at £65mil. It’s happened on other shares of course in the past. Guessing game for all of course at this stage
Look at Cluff, all the hype and then severely disappointed
I don't believe we can hope for that much in back costs as our costs have been pretty minimal for the conventional. Some 3D and interpretation, and maybe they can allocate a proportion of the lease costs to the conventional, but its not going to be a huge amount.
To our advantage for what someone may be prepared to offer instead of back costs could be the historic wells on the acreage which show hydrocarbons present where the 3D says it is. And you never know, our FO partner may be someone who drilled one of those wells, and has now realised what they missed with the benefit of modern 3D and other recent discoveries on the north slope.
Then there's the last Yukon update, which said "Discussions have been initiated by the Company with nearby lease owners to optimise the monetisation strategy for existing discovered resources located in the vicinity of the Yukon Leases. "
So why would we be initiating discussions if we don't have anything to bring to the table? That announcement would probably have been made after the FO cash element had been agreed, so DW appears to be expecting to be able to do something after the FO
How are you judging our 'success to date' Neversatisfied?
Pretty sure back costs will be paid. I'd say 88e were in a fairly strong position considering our size and success to date. DW had to extend the deadline due to the amount of interest and to let them get their bids together. The NS is highly sort after with not so many ways in now. After the Armstrong success in an area overlooked by the majors, it wasn't going to happen again. Yes our acreage has not spurted the black stuff yet but its there and the big boys know it is. In my opinion more than one major seriously wanted in here. Get ready to be surprised.
My fear is another Cluff and 88E having to raise off the back of the FO to fund
Cash position can’t be too great so it’s essential back costs are paid.
If back costs isn’t part of the deal it’s rather concerning issue
I’m not reading too long into time frames. It’s been two and a half weeks since the last RNS and these things take time with no doubt multiple lawyers and multidisciplinary specialists
We aren’t buying a building plot for one house!
But....I can’t see any deal including large back costs given 88e haven’t drilled any wells, and the risk profile wouldn’t lend itself to a “cracking deal” at this stage imo.
It’s still a large risk project regardless of data and this will no doubt be reflected in the final FO terms imo
£65mill mcap, no drills, no updates CPR by virtue of that, and who is paying for the ramped up drilling and permits? Is this part of the deal ie instead of back dated costs the farminee is paying for the drilling and permits with a free carry for 88e
We don’t know, and all guess work on my behalf.
Bridgedogg1 no idea but they have always been our jv partner and I think DW & MM work well together, what is a fact is that Bex purchased the w.i. in the GBP fire sale leases previously owned by Borealis, so for what ever reason they saw that as a good deal and it could make any FO deal cleaner (without literally a third party).
20 Mill and one drill would not take this long to sort.