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Do you think they can pull it off ? The last price looked good IMO.
Looks like the equity raise has fallen a bit short.
SK Announced by Reuters 16.35 ?
Either get it cheaper or the deal falls through? Should see a big rise in sp either way surely?
Why not give to us on interest free and allow us to pay back over time as poo increases. No cash raise and everyone wins
Don't think BP will drop the price again, and if they do it means they are desperate to offload which it turn makes it worse for pmo.
Something is going on here.
Could speculate on a lot of scenarios, but that's all it woukd be, speculation.
Tomorrow is going to be interesting.
SK didn't you read hasiba's post at 16:48.
Question, why are they asking to drop price by 70mil yet still looking to raise the same 530mil.
Where is the potential saving going?
Think BP will turn round and say are you taking the ....
we already agreed one deal then dropped the price substantially and now you seriously think we are going to do it again.
As I said if BP do drop price again that tells a bigger story.
Good luck
Are they not raising $325m thru equity raise and converting $205m from debt to equity at same time.
So will have 325m in cash.
Maybe not able to raise as much as they want, as I said speculation expect a lot of that until firm news.
So why risk losing bp deal, unless they don't want it.
A lot of people on here were opposed to it.
Why not go for a lower price? All the negative media works perfectly In our favour, BP know we are diluting to oblivion as it is and no one else is running around willing to take assets right now, does t say anything about the asset itself, just the current climate.
The article says PMO is asking a reduction in cash price. The renegotiated terms already requires PMO to pay BP additional fees when oil price is above 50 something so maybe they are just asking BP to reduce the cash upfront and move that amount to future payment when oil price is higher.
This hopefully can only be good news,either way.Personally I would like to see them buy BP assets especially at a lower price. Happy close your short position as quick as you can and be happy again.
Rather than seeking a reduced price from BP, would PMO not be better off restructuring the deal with no upfront payments in return for taking a larger share of the decommissioning costs. Even better PMO could take on all of the decommissioning costs($600M) in return for a share of the 2019/2020 revenue as originally agreed($300M).
Overall cost to PMO, approx. $300M, not that different to what has been agreed, but PMO would get $100 - 300M now to sort out debt, higher production to ensure debt repayment over the next 4 years and have enough time to recover from COVID-19 and sell Zama, all in time to meet decommissioning costs.
Let's hope (no pun intended) the PMO board read your posting!
Decommissioning liabilities rank ahead of debt liabilities, which was one of ARCM's objections. ARCM argued that they were less likely to be repaid hence why the deal was restructured with BP retaining the major of decommissioning liabilities whilst PMO gave up the cash flows accruing from the deal date.
BP should invite other bids. Cairn, Enquest and Chyrsaor may all be interested.
Assets producing 20kbpd are not bad, bad is placing at current sp levels.
"Decommissioning liabilities rank ahead of debt liabilities, which was one of ARCM's objections. ARCM argued that they were less likely to be repaid hence why the deal was restructured with BP retaining the major of decommissioning liabilities whilst PMO gave up the cash flows accruing from the deal date."
PMO1 is down today, glad I'm out,
I think I’ve read somewhere creditors/ Insituational investors can be held accountable to contribute towards decommissioning liabilities so they may not look at that very favourably?
What do you make of that ?
PMO1 is now down below the indicative price Reuters reported Asia Research & Capital Management wanted. The price they waned to auction their holding of bonds off at.
Reuters did say that souces thought they might not find any buyers.
Perhaps sources were right, no one wants the exposure if they haven't already got it and those who have don't want any more.
I believe the auction is tomorrow, a whole 3 working days before the 30th. Interesting to see if there's much appetite....
There's less liquidity in the bonds, less retail investors, so when they fall it's an interetsting insite into the markets views.
Devon - I find your comments their timing to be slightly suspicious. Additionally you blend fact with fiction in several instances which is concerning especially when the correct information is available from public sources.
First, ARCM are not selling their entire holding of PMO1. They are auctioning $200 mln and will retain $240 mln according to media reports.
I don’t agree with your comment that moves in illiquid markets provide significant ‘insight’. By their nature illiquid markets can be moved by very small tickets so how much informational value is provided when a mom and pop investor sells their £10K face bond and drop the bid as there is minimal flow on the buy side? Additionally if you read the prospectus for this bond you’ll see that it was clearly aimed at retail investors.
All in my opinion only
First, ARCM are not selling their entire holding of PMO1. They are auctioning $200 mln and will retain $240 mln according to media reports.
- that's correct, I've posted that on previous occasions.
That's applicable to PMO, the difference in general is that bonds are held buy institution, so if you use PMO1 as being an indicator, as I did, then you have to accept that institual investors are not as excitable as retail investors, they won't be expecting £1 by Christmas, so it provides and insight.
Can you can buy and sell PMO1 in trades of £100, but you also know that most are traded in much greater figures than mom and pop 10k's. In general there is less retail liquidity, but also less retail specualtion.
Agree with it or not, that your choice. As far as timing is concerned, we wouldn't be having this converstation in the company's equity hadn't created, unless you poster on here can move the market to that extent. If you do, I'm afraid we'll disagree again.