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You make some good points Cyan2 however............
The fault here is the debacle with continuing changes to situation with PMO who appear to be running rings around this BoD. The initial problem with this whole shenanigans was created by Moody et al when they totally failed to safeguard the asset of Sea Lion when signing with PMO.
Had they done so they could have pressured PMO to fulfill their contractual obligations or get out, as it stands now they have no leverage whatsoever and IMHO will lose this asset to a low ball takeover.
Poor poor management to get cornered the way they are right now.
I note the good news for UOG.
I read this statement made today on the ADVFN BB;
"Also it was in the T $ C's with our Israeli partners to dump the Egyptian assets"
I do not believe that is correct.
Imo,our management sold the family silver( announced 23.7.19) because they were running out of cash to pay the big bills PMO were presenting .
There is no way, last summer,that RKH could have formed an opinion NAVITAS would partner us.
It was all about our serious cash burn position. Here is the evidence;
RKH's cash positions from results RNS's;
End of 2017 $50.7m
End of 2018 $40.4m
"At 31 December 2019, the Company had cash and term deposits of US$17.2 million "
Final results 8th April 2020 RNS
https://uk.advfn.com/stock-market/london/rockhopper-exploration-RKH/share-news/Rockhopper-Exploration-plc-Final-results-for-the-y/82190755
Extracts
"Following the disposal of Rockhopper Egypt Pty Limited, the Company has cash and term deposits of US$21.9 million as at 1 April 2020 (unaudited)."
"During the first quarter of 2020, the Company paid US$3.9 million of Sea Lion costs related to the period prior to 1 January 2020. Whilst timing remains unclear, further such costs, estimated at up to US$10.0 million and included in the balance sheet under current liabilities, could become payable in the next 12 months"
The sale of the Egyptian assets terms were;
"-- cash of $11.5 million; and -- the issue of 114,503,817 Consideration Shares (at an issue price of 3 pence) representing approximately 18.5% of United's enlarged ordinary share capital."
You can see that without the $11.5m USD cash, RKH's cash position at 1st April 2020 would have been just $10.4m USD .
Remember that RKH were and are expecting to have to possibly pay "up to $10m" which "could become payable in the next 12 months"
This $10m remains an issue as confirmed in the 30th April 2020 RNS on the amended terms;
https://uk.advfn.com/stock-market/london/rockhopper-exploration-RKH/share-news/Rockhopper-Exploration-plc-Sea-Lion-farm-in-update/82343301
"Rockhopper remains responsible for funding its share of costs incurred prior to 1 January 2020."
Its clear RKH were in a financially stressed state; they had to raise cash; the Egyptian sale was forced by their weak finances; not any demands from Navitas.
The Edison report of 23rd April 2020 clearly shows RKH's financial weaknesses and predicts a big drop in cash resources at the end of this year;
www.edisongroup.com/publication/parties-committed-to-complete-sea-lion-deal/26659
The charts helpfully give estimates for RKH cash positions at year end 2020 as just $10.2 m USD and YE 2021 $5.3m
The announced 30% cost cuts will slightly improve those numbers , but, it remains clear; RKH needs to receive a large arbitration award to stand any chance of lasting to first oil without a fund raise within two years, .
Remember its 3.5 years from a FID date to first oil and some revenues.
18.5% of UOG Jamaica assets is tasty though
TRP also
But 18.5% of 22% share of the field = a grand total of a whisker over 4% ! Well done rkh bod , again !!!
The 18.5% share they have is not free trading for a period of twelve months from issue thankfully. The BoD will not be able to sell off for quick profit in the near future as appears to be their habit.
All being well POO will have recovered and the field will have been proven to be a real asset and worth a lot more than present.
With operating cost of $6 + /barrel it could turn out very nice for us...unless of course.........
Yeh, UOG have done rather well with RKHs old assets ! Look what can be done with proper management !
Don`t forget RKH has 18.5% of the shares of UOG this maybe explains rise.
From RKH release......
As previously announced, the US$16.0 million consideration payable to Rockhopper under the transaction comprises:
· cash of $11.5 million; and
· the issue of 114,503,817 Consideration Shares (at an issue price of 3 pence) representing approximately 18.5% of United's enlarged ordinary share capital.
At least our UOG shares will be up today! I'll get me coat :(
Fk me...we're fk-ing jinxed.
As if to put the boot in when a man is down, did anyone see the RNS released by UOG ?