Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
LIQUIDITY, COUNTERPARTY RISK AND GOING CONCERN - https://otp.tools.investis.com/clients/uk/rockhopperexploration2/rns/regulatory-story.aspx?cid=441&newsid=1512949
The Group monitors its cash position, cash forecasts and liquidity on a regular basis and takes a conservative approach to cash management, with surplus cash held on term deposits with a number of major financial institutions.
At 30 June 2021, the Group had cash resources of US$7.1 million (unaudited). Following the sale of Rockhopper Egypt Pty Limited in 2020, the Group generates limited revenue and cash flow from the sale of oil or gas.
Historically, the Group's largest annual expenditure has related to pre-sanction costs associated with the Sea Lion development. However, following the announcement by Harbour of its intention to exit the Falklands, the Company will have greater control on the level and timing of future expenditure on the Sea Lion project.
Management has also considered a number of downside scenarios, the most significant being one where decommissioning of certain physical assets (principally the Temporary Dock Facility) in the Falklands is required. The Group would be liable for its 40% share of these costs with no funding support from Harbour and/or Navitas.
Under the base case forecast, the Group will have sufficient financial headroom to meet forecast cash requirements for the 12 months from the date of approval of these consolidated financial statements. However, in the downside scenarios, in the absence of any mitigating actions, the Group may have insufficient funds to meet its forecast cash requirements. Potential mitigating actions, some of which are outside the Group's control, could include collection of arbitration award proceeds, deferral of expenditure or raising additional equity.
Accordingly, after making enquiries and considering the risks described above, the Directors have assessed that the cash balance held provides the Group with adequate headroom over forecasted expenditure for the following 12 months - as a result, the Directors have adopted the going concern basis of accounting in preparing these consolidated financial statements.
Nonetheless, these conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's and Company's ability to continue as a going concern. The financial statements do not include the adjustments that would be required if the Group and Company were unable to continue as a going concern.
looking at the Annual report 2020 looks to have cost them 1.225mn every quarter given there is pre 2020 costs in there(350k per quarter) and admin of 400k a quarter and 600k of cost of sales - the run rate going forward could be less and they could last the whole year without any one off items... who knows
The company had retained cash of 7.1mn USD in June last year looking like 5.2mn end of december and taking that run rate looks like will be at 1.4mn in June at a point where they could fund raise? you would wonder would navitas take a stake in this or what would happen ???...again complete speculation
I disagree Latics.
The higher the oil price, the more likely SL will get FID.
If oil was $10 the SP wouldn't be 8pence.
… on fund raising : do any on this board have a working theory as to when funds might run out? One would think fund raising starts about 3 months prior to that? At Latic you forget OM but absolutely no one knows when (if ever) a judgment will be made (and that’s not cash in bank either).
Price of oil has no relationship to the current SP of RKH. Maybe only production or new discoveries will change that.
No, I’m afraid that the market’s negative view of the chance of oil production from Sealion is a major factor. The complexity of sorting Harbour Exit, Navitas onboarding, FIG tax and governance impositions in Q1 timescales will, IMHO, mean the share will continue to drift at the whim of the market.
I am not expecting news soon and would not be surprised to see a further drop to 5p as we wait.
It gives me no pleasure in saying this but I suspect the next news will be fund raising.
Brent hovers in and out of $90