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Daltry - Yes Dr T's / HUR's interpretation was what RPS did their CPR on as I understand it. New management have gone from one extreme (Dr T's) to their own regards resources.
i have always been a bit dubious of the CPR process - as presumably they are just going over the data supplied by the company in question. Presumably the company will have already come up with their own opinions - and the CPR is just getting a third party to "sign it off"...
i might be cynical but it always seemed to me like a nice little earner for the CPR company... and unlikely they would go against the company's findings unless they didnt want to work for that company again? there are so many disclaimers written in that it is doubtful there will ever be any comeback on CPR company.. i am also suspicious of the length of time it can take? almost like it has to justify the no doubt extortionate fee charged
this is why i strongly suspect the new one will be an upgrade on the kitchen sink
" I am assuming that “Independent Competent Person and reserves auditor” will mean exactly what it states"
TC81 - It does, trouble is they only analyse the data as presented by HUR, for example (and this is very, very important) the last CPR by RPS analysed data presented to them from HUR but the data interpretation was done "in house" using Schlumberger tools - you need to re-read that last bit several times.
Now as far as I know the new CPR will follow the same pattern based on HUR Management interpretation and the previous RPS CPR.
I hope this helps, I'm off for a bike ride now.
Ok Albie, - but the last CPR was Trice's work and influence. It was shoved through, although questioned. Look what that turned out to be. Dogs' whatsits !
"surely there is a conflict of interest issue?"
Daltry - Not at all, it's like paying the AA/RAC to look over at a car you are thinking of buying and telling you its worth warts and all.
Odd as this may seem to many on here I'm actually heavily invested here. I'm questioning the way Dr Trice / the new BOD have and are running the show.
But I still want to see HUR succeed and myself to get a good proportion of my money back.
Also looking forward to a face to face AGM (really looking forward to that day).
If HUR have appointed and are paying for the CPR, surely there is a conflict of interest issue?. A bit like the totally bias Hamman reports that emerge. .....
Albie - Excellent to question to BoD’s words and actions.
Too many expect too much too soon.
Please continue....
TC81 - Surely it's the Boards prerogative to act in the best interest of its share holders.
The thing that frightens me is that HUR BOD have called for a second CPR to 'confirm' its resource findings and not to be proven wrong! I hope I'm proven wrong on this.
It maybe that you are overlooking the requirements of the OGA wrt the Lancaster licence and the required drill.
They avoided that by taking a much reduced licence area defined by the conventional closure.
It is no longer contiguous with Halifax.
As it is no longer such a large area field nor as deep, it no longer holds the same oil volume.
HTH
"hopefully better than expected CPR" - So why did Management not 'Manage' the situation better here? Why didn't they just say something like:
We now believe their 'could be' a material downgrade in resources, to this end HUR have commissioned a second CPR and together with our findings the results will be released Q 2021. No need to even mention the 90% plus drop in resources they estimated in house! And if you believe the CPR will be less damming than HUR management's estimates then this cataclysmic collapse in the sp wouldn't have happened because the drop in resource estimates will be less.
Absolutely incompetent in my view.
LD, Radio silence here makes M&A a higher possibility or maybe even HUR is simply awaiting a hopefully better than expected CPR first which will be a massive game changer ahead, regardless, now with Brent at $66+ and as others have highlighted, no news here so far and likely rolling into March has to be very good news, DYOR.
mary - with that amount of cash (if correct) i think the cash would best being used to fund sidetrack - get that working. hopefully generate more income and then do water injection. if the cash can keep coming in they will either be able to sort bonds out or refinance. the price of oil has changed the landscape in hur favour- lets hope it continues.
my fear is that they will dilute rather than use the cash. obviously anybody getting in post dilution will do well but lth worse
Very much agree that this BOD has been abysmal and with the exception of the new CEO should all hang their heads in shame. This fiasco happened on their watch and yet none see the need to resign and we know as PI’s there is little we can do about it.
Re. the CB’s and the possibility of dilution, I just cannot see how it would be needed or justified at present A few months ago a possibility certainly. Rough calcs. the debt is due next year with the next lift the company will have a conservative £125 M. cash. To pay back the bonds at present with an increasingly strong £/$ requires £163M. To tick over for just a few more months and the CB’s are not an issue and only the side track needs funding. Surely not quite Armageddon.
GLA.
How right you are - they have consistently been this company's worst asset and the enemy of shareholders and value creation
Was it the guy, on the pumps, at your local petrol station .... ?
"Shell did tell me 3 years ago they looked bit couldn't assess the fractured basins "
HUR would certainly be of immense interest to Shell, particularly with extremely fast rising oil prices and overall outlook, if a takeover/bid comes here, it will have to be 14p+ as absolute minimum today, and likely lot higher as the year progresses.
“ROYAL Dutch Shell chief executive Ben van Beurden has hammered home his view that the oil and gas giant has lots of ‘running room’ in the North Sea, with its activity likely to focus on the West of Shetland area.”
“Mr van Beurden underlined the fact the North Sea is one of the nine core regions that Shell will focus oil and gas investment on.”
“Eighty per cent of our capital and 80% of our exploration effort will be in these nine core areas,” he said.
https://www.heraldscotland.com/business_hq/19084342.oil-giant-plans-north-sea-developments-targeting-net-zero/
Yeah, I'm actually more worried that a non-aligned BoD will give us away for a "most impressive" 50% return over current share price, or similar, than that they can't sort the bonds. Those of us who were LTH in SXX know that scenario all too well.
Of course it can, like any debt can. They are making money and building up their cash balance. The debt matures in 13 months away, although a takeover will more than likely materialise before then!
Can the debt be extended?