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Thanks, JRich - well worth watching whole video, particularly at end where they perhaps suggest they may just buy gas from Etinde rather than drill more at Logbaba.
Regards RSM: if the claim is just about their share of payment (which will clearly have been set out in the signed agreements) then I don't think they have a leg to stand on. If they can prove fraudulent overbilling (which I thought this was about) then we are in trouble.
Worth listening to Roger's interview last year. RSM arbitration comes up around 6 mins in. He seems reasonably confident.
https://www.brrmedia.co.uk/broadcasts-embed/5e6a2fd79672d83b987791cf/?VOG&popup=true
If the insurance claim is ever met, RSM will get their share. For the expenditure they have paid. If GDC lose and have foot some more of the cost and it is subsequently covered by the claim, they will recover it.
Thanks for the reply, Ray.
A little better understood here now.
It seems to me that RSM will need to prove criminality (fraud) on VOG's part if they are to win their case, though perhaps the evidence bar isn't set so high in a civil arbitration?
Yes?
From RayFenn on advfn:
"RSM is indeed a concern - if it goes our way we will get a lot of fees returned; if it doesn't, then hopefully we can claw back money from CHL payments." Mr Sparrow If the firat arbitration goes VOGs way (as I expect) then it just means RSM have to pay 38% of the "over budget" costs for drilling well 107 and 108. As it was a well blow out issue I can't see how RSM can't pay these costs.
Ray - Please correct me if I've got this wrong: My understanding of the case was that RSM was claiming that we had overbilled for the 107/8 drills. I assumed they had paid, and now wanted money back; hence they sought arbitration. If we win, we do not return monies already paid by them, but reclaim our fees.
Your post suggests they haven't paid; hence we are seeking money from them through arbitration. Have I got this wrong?
As I understand it, the insurance claim is to do with the blow-out issue; not the RSM arbitration. However, the RSM arbitration may determine real well-costs; and this might have some bearing on what would be a fair insurance claim? Again, am I wrong here?
MT. Only question is, why not?
Worth reading the RNS right through - there is a lot more below Roy's quoted words.
RSM is indeed a concern - if it goes our way we will get a lot of fees returned; if it doesn't, then hopefully we can claw back money from CHL payments. My guess is that YF Finance had some indication that it would go well for us before they ploughed in their recent $7.5 million loan notes.
West Med, as expected, there are other parties showing an interest. Either the recent exclusive bidder ups their offer, or we try elsewhere (yes, possibly bluff, but the bidder can't be sure, and would be stupid to lose out on the prospect).
Matanda farmout progressing.
LA-108 performance of interest. Established reservoir and long-term flow rates may enable us to sell the entire GDC complex.
'Adding perforations could increase the well's productivity, reduce the overall water cut and of course allow us to access all of the well's connected gas volumes.'
Doesn't read well does it, not much progress if any and now moving into a slow period of time and sales.
yes they sound very very worried about RSM and if it goes against them it could sink the ship, maybe that's why the directors still haven't bought any real number of shares and waiting to see if vog will still be in business in a few months.