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What if anything do we infer from all this?! Oh well, we'll know soon enough. Hope they've found something.
Hi Ghost
Thanks for the info, we could get to hear a bit sooner or later then now, then MT and all can start doing the maths.
Bang on time wise though.
Drilling rigs still on site, so who knows.
31/7/19 Announcement
Spudding of Andromeda North Well
Hague and London Oil PLC, the oil and gas company with a full-cycle portfolio of production, development, appraisal and exploration assets focused on the Southern North Sea, is pleased to announce the spudding of the Andromeda North well on licence Block 42/12, in the Southern North Sea, in which HALO has a 45% working interest (Spirit Energy 55%). The Andromeda North well is targeting ca. 40 Bcf of resource, within the single well and is planned to be drilled to a total depth in excess of 3000m. The well is expected to take ca. 90 days to reach total depth, logging and in the event of a discovery will be suspended as a future production well.
"Europe’s energy landscape will be completely changed once the Dutch shut down the largest gas field on the continent years ahead of schedule, according to Rystad Energy.
The Netherlands recently announced that production at Groningen – Europe’s largest gas field – will be halted in 2022, eight years earlier than initially planned. However, despite the ambitious target of decommissioning the field by 2022, Rystad Energy expects that there could be some residual production from Groningen up to 2030 as it is technically challenging to completely shut down production in such a short timeframe.
The drastic drop in output from Groningen will redefine the European energy landscape. The field, which had a rebound in production at the start of this century, reaching 57 billion cubic meters (Bcm) in 2013, was for decades the central cog in northwest Europe’s gas system.
“The phase-out of this giant field will force Europe to expand its gas imports at an even quicker pace. We can already see this drastic shift taking place in the Netherlands, which is in the midst of the transition from being a net gas exporter to a net importer,” says Carlos Torres-Diaz, head of gas markets research at Rystad Energy." ...
more here ...
https://oilprice.com/Energy/Natural-Gas/Europes-Gas-Demand-Soars-As-Dutch-Giant-Folds.html
Has anyone looked at the deal Solo is entering into with ONE-Dyas, RNSd yesterday? Looks like a real marker coming up for calling HNL's assets.
Approx figures, but if Solo are paying €30m for 3.6 mmboe 2P reserves with 1750 boepd production, how much would a buyer pay for HALO’s 20 mmboe 2P reserves with 3500 boepd (that includes HALO's OND deal assets but not anything we might find at Andromeda) ?!
OK, it’s pretty meaningless because there’s other assets, liabilities and issues etc etc to take into account, but these Solo deal headline figures are an interesting comparison for us HALO s/hs.
I like the sound of that £5 p/s.
Morning all, least we have some sort of a timescale for the re list and who knows what may happen between now and then.
MrC's doing what he does best little acorns at that.
LOL...good luck to the holders I'm just jealous. Be interesting to see how the economics work out for them in terms of income v's OPEX. That transaction means we might get £5/sh for HALO after all !!
SOLO have slightly over-paid for the asset by about €30 million.
I would have thought Andrew would have gone for this asset
I think you're quoting from the 2017 AR MTS.
The 2018 AR tells us about DSA " The Group expects to be able to place a surety bond to cover these and future security obligations."
The interims today tell us "The decommissioning of the E18-A field (HALO 18.357%) wells and platform was completed successfully and in line with budget"
Yes, it would be nice to fund decom liabilities with a massive pile of cash, but I don't think there's a problem with strategy or funding these liabilities.
Decommissioning provision At 31 December 2017 £68,470,830.
From HALO annual report - A decommissioning security arrangement (DSA) in respect of the production assets held by the group is currently in discussion, with security deposits expected to be called in the final quarter of 2018 and payable in the first quarter of 2019. The current draft of the DSA model suggests that the group will have sufficient resources to cover the deposit expected to
be payable in the first quarter of 2019, however, the headroom in these projections is limited. As a result, should the security deposit called by the operator be greater than the current projection, the group will need to seek additional funding, or an alternative means of securing this balance. Based on the current model, the security deposit called in late 2019, and expected to be payable in early 2020 is forecast to increase significantly. Additional funding would be required to cover a security deposit at the level currently projected.
HALO sell the gas at a discounted rate and with TTF crashing are not making enough cash to cover decommissioning security and Tullows €15m, let alone anything else. That's not my opinion, it's a fact.
Additional funding would be required to cover a security deposit at the level currently projected.
On decommissioning costs, they only become a problem if it turns out down the line that HALO took an overoptimistic view of quantum or future treatment, on acquisition. They’re known about, and part and parcel of the business. I don’t think we can say there’s a problem now. Indeed part of the business model is the favourable way these costs can be “managed away” over time.
Looks good to me on a first read through.
Turning a profit in difficult trading conditions, expanding imaginatively. Good mix of increasing reserves and production and exploration. Funding through Engie gas sales and hopefully this Nordic Bond issue, should protect us shareholders from negative dilution.
A decent Andromeda result should focus minds on resolving the GPA issues, as well as being good news per se.
The cash position at the end of the period was £3.1m (1H 2018: £4.5m). Cash outlays in the period included the cost of decommissioning the E18 field platform and wells of £3.1m, and a contingent consideration payment to Tullow of £4.4m.
…….HALO still owe Tullow €15m and the dreaded decommissioning costs coming through. Costs for Andromeda drilling? As expected financially, not good. I fear H2 results will be even worse. It doesn't look like HALO will re-list until the company is actually worth something. All eyes on Andromeda North results.
A bit of a wait until re list....in any event by 31 December 2020 (subject to market conditions).
Vive la France.
Surely the drill is down to TD by now. Maybe news next week?
That's part of the problem, MT. AC is not exactly keen to open up in public with his intentions and timing for HNL.
The thought of fund raising, share dilution, decomm liabilities, bond issues, warrants, loan notes and the effects this will all have on any share price gives me a headache thinking about it...lol. I am just not sure that the "market" will be kind to HALO. If II's are involved in the funding you know that just means trouble ahead. They don't like hedging which is a bit perverse because I guess they like the volatility. We also need to consider Third Energy Holding Ltd with a 19.25% stake in HALO. I am sure they will have a say in what happens next. Based on his previous work though I trust Cochran to make the best call on our behalf, I would love to know his thoughts !
...unless Neptune or an entity like them offer HNL a deal that AC can't refuse.
I do Zatcha. Its gone on just too long now. You can't keep folks trapped in like this indefinitely. I am sure though, what ever the final outcome of HALO is, we shall know how it ends soon enough. As we all know HALO will likely need to raise hundreds of millions of $'s moving forward which must be at the forefront of Cochran's re-list strategy.