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CitizenTS,
Its (iii) Change of control of Rockhopper Exploration Plc
How do we know the legal documents regarding Premiers free carry to Rockhopper don't also have a similar clause ? Meaning any take over would not benefit from the free carry ?
What if first royalty payment is less than the amount owed!
On the subject of an opportunistic take over of Rockhopper. I could be mistaken but I believe that any party that takes over Rockhopper would be required to pay immediately the £59.6m Rockhopper owes to FIG, which will be a deterrent for at least a few potential buyers. Note the below from the half-year report (and specifically the third point):
"the outstanding tax liability ... is payable on the earlier of: (i) the first royalty payment date on Sea Lion; (ii) the date of which Rockhopper disposes of all or a substantial part of the Group's remaining licence interests in the North Falkland Basin; or (iii) a change of control of Rockhopper Exploration plc."
Sorry forgot to mention, STRONG BUY
The last few years have been very tough for the oil industry. Many have gone to the wall. Rkh have managed to ride the downturn without any debt. They are sitting on an enormous amount of oil especially concidering the unappraised isobel discovery thought to be larger than Sealion. There are also many other satellite field discoveries.
Patience will be rewarded. Thanks Mogger for your latest informative post. Xmas/new year looks like a possibly very rewarding time.
The Italian case also should see a uplift as they due to how the case was pursued cannot avoid paying or overseas assets get seized. Well done Rockhopper.
Auson,
I'm working on a project right now, where many of the management have seriously impressive credentials, but they're all bloody useless!
One can write a lot of impressive bulls-hit in a CV, but it's ability to do the job that matters.
Hey Auson, yes the CV's look good but the results are not. Its that simple. There is a term in the business: NRB.
If you belive they are good at what they are doing then fair enough, but every choice they have made has been very poor at best but I think it is on the side of incompetent.
If PMO get us out of the hole are you going to trust them RKH BoD) with your money and Isobel?
They are sucking this dry and the future is issuing more share to raise more capital. Contracturaly inept, business decisions inept, money management inept.
I am unsure how you can support them?
Rgrds Sft
Surfit,
Yeah they are not oil men, except the current board have previously worked at, Shell, Ultramar, BG Group, Pioneer, Rothschilds Global Oil Group, PetroKazakhstan, British Energy, Hutton Energy, Composite Energy, Gulf Keystone Petroleum, EMEA Oil and gas practice at Price Waterhouse, UK Energy Utilities Ernst and Young, Norway Paladin Resources and British Gas.
I still say we have to write/email the major share holders to effect change in the BoD.
These guys are hopeless. They have not made a decent business decision since the find. They are not getting any better and have not reduced their income to help either.
They have to go. They are incompetent and ad no one is challanging them they will keep at it. They are not oil men (imo).
Rgds Sft
I don't think it would quite play out like that as PMO need to take on less risk and debt not more.
But any farm out deal will likely involve an approach here.
Have a look at all those 50,000 trades holding this down they've been going on for weeks.
We know Goldman Sachs have an interest in PMO.
PMO takes out RKH at 30p a share . PMO owns 100% SL , PMO farms out 30%, is then left with 70% with a partner paying their full share, no free carries.
Getting very close.
you never know; MMs might read this board and raise the sp
just thinking a laud , if farm-in company pay $200million cash plus $300million as development carry to premier for 30% of phase1 and phase2, so why not buy rkh for let's say one pound per share, that will give them 40% of phase1 and more than 40% for phase2 and 64% for phase3 plus $
So the consensus is that at this price it’s a good buy time?!
A low ball takout of RKH will only happen if RKH runs low on cash. Then it will be sold as being neccesary for survival, and most likely to PMO.
H1 results show we shouldnt reach that point until possibly the middle of next year.
That gives time for an OM ruling and hopefully SL FID.
Next thing to look out for is OM post-hearing briefs which will trigger the clock on a decision on the merits.
GS
suresh786,
I think a takeover would have to be at quite some premium or the shareholders wouldn't vote for it. There is no one at the moment with a significant holding yet to make an approach, if they started to accumulate expect 40p + before the offer. Besides how do we know Premier will actually farm out ?
companies doing farm-in with premier, will be paying few hundred million dollars so they will be thinking why not just buy rkh which will give 40% of phase1 plus carry from premier plus phase2 etc.