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Rnstranslater
I understand the points you make re the position of the BOD and the relative strength of the Bondholders but given a half decent CRP, continued POO, and maintain oil flow, we will have paid off the current CB debt and have new revenue and funding options available. Not quite dead in the water.
Go get him tiger
Rns translator
Unfortunately for you I also know about bonds and their mechanics...
Next .. one dipsh@t...
Planted, I think you know a lot about the mechanics of drilling and very little about the commercial and legal risks associated with bond covenant breaches, which is what this is really all about.
RNSTranslator - Your recent posts here are to be applauded and convey the reality faced by the BOD amidst a sea of posts from those whose comprehension is sadly lacking.
wrt the RNS, might I suggest that this is the response, having been told by CA that they will be making comments in their imminent Report?
It may not have helped change CA's view, but they did tell us how much they invested, and previously they have told us that they have 'realised profits of £43M', and therefore it was not a disaster for them, even if they have to write off the December c5% of the fund [6.6/129] valuation; just a lesson that they were sucked in, like the PI and K.
The use of Ad-hoc suggests that they had not used the Trustee to convene any Bond Holder meeting. And the stakeholders would likely include Bluewater and OGA, ie plural.
Imagine the outcry on here if CA had been given exclusive price sensitive information in advance of the humble PI!
The CPR could well turn up with the Full Year results, in the same way that the TR came with the H1, and the viabilty of the company will then be laid bare.
jimo
joe
Now I’m laughing a doubleuk.. if you knew the truth you would be to.
Yes, people manipulate the tools but the tools do the work, push, point ? Which one do you like best ?
Can’t remember trajectory of 7z but I’d guess set a whipstock complete with packer in the casing and mill a window, one trip system should do it. Don’t want to go too far out or the angle starts dropping.
Once you’ve drilled 25 ft, pull out and go in with RSS / Mwd assembly and start kicking the angle up.. easy really ...
Oh, you have to orient the window with an Mwd tool To the direction you want to come off the old well..obviously ...
Enough info Adouble or dyou want more ..
Type of bit... flow rates , rop expected , insert v PDC, roller reamers or stabs ...?
Not bad for a truck driver ... what you think ??? Lol
* the production of 5.1mil is for one year,2019.
in q4 2020 we produced 5.1mil barrels and received 19MIL INCREASE IN NET CASH!!!( with average oil price of 40-45usd)
assuming production is stable and prices are gone higher now, and oil is sitting at 60-65 usd.
that will be massive increase in cash flow here!
just assuming usd 10 increase in selling price while costs are still remaining same then on 5mil production we will be having 50mil extra cash(profit?), which is nearly our mcap???
RE RATE TO HAPPEN HERE AND WILL BE SIGNIFICANT!!!!
Planted,
"With a sidetrack ... current drilling tools can get where you need to go.. period ... you don’t know that then your not oilfield"
If properly operated, and if you know exactly where it is you want to go. The 'tools' don't do the job. People control that. Just like (I suppose) you control the trajectory of your lorry.
But as you purport to be 'oilfield', would you like to mildly suggest just where a sidetrack of 7z might be 'kicked-off' from, and how? (Don't bother going into detail about pre-abandonment of the current section, it'd get too complicated.)
The entire idea is utter prevaricating hogwash.
Reality check - if HUR maintains production rates those salivating Bondholders get wooped. End of. Any financial restructuring that de-risks further or cost efficient production initiative bags the stock.
Planted: " With a sidetrack ... current drilling tools can get where you need to go.. period ... you don’t know that then your not oilfield "
Of course they probably can, but what they need to do is difficult to achieve from where they are with respect to the optimum location of any sidetrack and its orientation wrt the fracture system.. read higher risk, not impossible. I am oilfield but I understand that the issue is about risk vs potential reward vs the implications of debt covenant breaches and not simply a drillers "yeah, course we can do that".
Stock market is awash with money right now... your not telling me with the income we have currently we can’t get finance ... don’t believe this ..
They already have a hardly sustainable debt pile debt and a low shareprice, where exactly do you get finance from, equity markets?, more debt?? - uh really. The stock markets may be awash with money but its not for investing in over leveraged under delivering oil and gas companies.
If they had any b@lls at all they would come out and tell the shareholders what has been going on with the bond holders and comms generally ... but they don’t .., why?
Because that would scare the cr@p out of shareholders and undermine their discussions with the Bondholders who currently hold the whip hand... as Directors they cannot knowingly set out to breach covenants. Although I have to agree that many the Non execs who appear to have been previously unwilling or unable to challenge the previous CEO are probably not going to deliberately pick a fight with the Bondholders. The new CEO may know something about FB's but to be honest has no experience in managing shareholders and public markets, and its not in the best interests of their own reputations (to the extent some have any left)and legal obligations etc etc.. I suspect CA are prepared to do just that, as an activist, losing their entire investment here is not helpful in terms of it will undermine their their own reputation ... its only a £100mm fund, microscopic in the broader scheme of things, so they have a lot to lose, they must go going down fighting rather than just letting executive management just follow the rules and protocol.
Comments
Production ... every rns would be nice as an update ?
Lincoln ... chaffie said making good progress .. what progress ...??
With a sidetrack ... current drilling tools can get where you need to go.. period ... you don’t know that then your not oilfield
Stock market is awash with money right now... your not telling me with the income we have currently we can’t get finance ... don’t believe this ..
If they had any b@lls at all they would come out and tell the shareholders what has been going on with the bond holders and comms generally ... but they don’t .., why?
Trice managed to get funding from spirit when we were not pumping any oil.., now at near $70 we can’t get any pumping at 12k a day with another well sitting idle with potential of 10 k a day and 30 million spent on kit to tie it back and 3.5 million spent on hedging that was ludicrous ...
Incompetence....
RNS Translator your post sums it up perfectly. Also the the rather stroppy poorly written RNS was written thus because the new management are irritated that they are not allowed to do anything or at least they are trying to communicate that they are doing their best. Reality is their hands are tied until the bondholders are confident they are getting their money back.
I should know what production rate we are at...regularly... we have no idea now... - depends what you mean by regularly, every day/week/month. I think they just told you its still 12k/day.
I should know why Lincoln can’t be tied back - There is no money to do this.
I should know why the well is too technical to drill .. -the current bore is in the wrong place to easily get to where the sidetrack needs to get to, costs more and carries a greater risk of failure.
I should know why we can’t go drilling - You do, it needs funding and there is clearly legal uncertainty about the influence the Bondholders have or may be triggered under the covenants (just read the CA update)
I should know if with the increasing Brent price we can pay the bond.. Yes you can if this price continues and production holds up, that is the whole point, the Bondholders want repaying, and rank ahead of the shareholders, the key question is how much is left in the till for further work after they're paid off.
I should know what production rate we are at...regularly... we have no idea now...
I should know why Lincoln can’t be tied back
I should know why the well is too technical to drill
I should know why we can’t go drilling
I should know if with the increasing Brent price we can pay the bond..
Our new CEO has taken his lead from louboutin Shiela and is in non communication mode since he took charge ..
Fire his @ss is what I say...he’s been no d@mn good
Fire the boards @ss’s
Brent up hugely and our sp is still stamped on... why ..
Skulduggery afoot for sure ...
CA needs to tear more shreds off them
They are utterly useless ..., hold your heads in shame .. you have no place in the oilfield ...