Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Nigoil, "More to the point carroteater, what will the UKEF accepting the financing proposal do to the sp?"
Probably something along the lines as what is happening to JOG today. Wish I'd got a few of them!!
the Falkland islands had a delegation visiting both Aberdeen and london where the met with the government, if the government were not likely to guarantee this then the Falkland islanders would be at the mercy of the Argentinians
No way would this be allowed to happen, this is a done deal a paperwork exercise
PMO by year end will have a independent assessment of the Zama reserves.
In addition Talos and Pemex will have the unitsation of the the field resolved according to the operators timeline.
This asset can be sold or farmed down or kept , leaving PMO with some very material options to either reduce debt a bit or significanly below x2 EBITA .
They could also have agreed farmin terms with a partner and mitigated their risk and included that in the ECA application , there is no reason they could not do that with a ECA country partner to again increase the chance of another foreign ECA taking on the loan .
Great find Mogger by the way. You are truly the ferret king.
That must be part of the experts reports PMO submitting, I'm sure there are many more, re housing, transport,rota's. etc.
Application and well result due , hopefully both this week, cheap as chips pending those events.
Eu moro no sul da Bahia Auson
E vc mora onde?
Abraço
Fernan10,
Sem problema cara, que lugar em Brasil tu ficar ?
Boa sorte aqui com nos
Fernan,
Very good point and i already thought of this a while ago. I don't think going without UKEF is not possible. But I think pmo does not want to go. Not because they can't afford. But because they don't want to pay for RKH carry.
If you see the current plan, they are not paying for full carry of first phase i.e. $337million.
Also other point PMO will not use all the free cash-flow for sealion. They are very scared since they lost the shirt on Solan. Although both are completely different projects but PMO management now is very careful and very risk assertive. Even after getting UKEF approval they will still bring partner, because don't want to have 60% of a project. They want to reduce their exposure to one big project and have small exposure to multiple projects just in case.
I apology for my spelling errors ladies and gentlemen.
Living in Brazil, English is my third language.
Regards
Fernan
What's US$1,098,900,000 between friends?
As for 2.2 time EBITDA, that's just grammatically wrong; like "math" makes my ears bleed.
I agree Fernan10 that PMO may be in a position to get this going themselves soon.
I find your comma and full stop (period) use weird though.
'US$ 1.100 million' must be internationally better read as 'US$ 1,100 million' ( I know some europeans use this format though)
but
'2,22 times EBITDA' doesn't read half as well to me as '2.22 time EBITDA'.
My point is: it´s clear that PMO´s financial situation is getting stronger by the day. By around mid next year, it should be evident that PMO will be in a position strong enough to fund the balance required to get to Sea Lion´s first oil (US$ 1.100 million) out of their balance sheet, cash flow and equity issue.
Regards
Fernan
Good morning.
we already know that, out of the US$ 1.500 million investment required for Sea Lion, there is vendor financing in place for US$ 400 million.
I think that, given PMO´s improving financial situation, the remaining US$ 1.100 million required to get to first oil could be funded by a combination of an equity issue, additional debt and free cash flow to be generated by PMO during the required timeframe (2020-2022)
According to my calculations, PMO´s current annual EBITDA is in the order of US$ 900 million.
PMO´s net debt is projected to be at US$ 2 billion by the end of the year (2,22 times EBITDA).
Additionally, PMO is going to produce an annual free cash flow of US$ 300 million in 2019 at current oil prices.
This annual free cash flow should increase come end 2020, after placing Toulmont gas project in operation (gross production of 58 koepd, 50% net to PMO).
Then, the US$ 1.100 million could be financed as follows:
* Additional debt (in order to have an Debt/EBITDA ratio of 2,5): US$ 250 million
* Annual free cash flow (conservative): US$ 200 million/year X 3 years: US$ 600 million
* Equity issue: US$ 250 million (aprox 28% of current market cap).
Comments?
Regards
Fernan