Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Plenty of companies looking for some skin in this game
Kistos, Long boat Energy,Harbour Energy and many more Equity companies to name a few
Dana divesting, who’s buying?
https://www.upstreamonline.com/finance/south-koreas-knoc-looking-to-sell-north-sea-assets-report/2-1-953466
Knoc sell 10% of Dana’s share of Tolmount. M&A is hotting up in the southern North Sea!
https://www.google.co.uk/amp/s/www.energyvoice.com/oilandgas/north-sea/295009/knoc-seeks-sale-of-10-of-dana-stake-in-tolmount-project-report/amp/
GrdianAngel :For sure Parkmead will.have a plan. Dana are better out of the picture.
Think we can be assured that PMG will maximise this opportunity. Looking forward to seeing new equity split and revised development plan when it comes. Although this may hold up progress in the short term, it maybe be beneficial medium to longer term with PMG as the operator.
Thanks for reminder SoB, I read that but perhaps didnt reead it... maybe TC will negotiate the remaining stake at mates rates... Would then make sense not to shout about it too much. Cheers
Licence partner Parkmead Group is expected to take over as operator of the Platypus project in the coming months, subject to regulatory approvals, according to a letter circulating among supply chain firms.
An industry source said the decision to pull out meant Dana’s reputation with frustrated service companies who were tendering for Platypus contracts would be badly damaged.
The letter indicated that Parkmead and CalEnergy Resources, the other licence partner, hope to press ahead with the project, but the development plan is expected to be revised.
Dana, a wholly-owned subsidiary of Korea National Oil Corporation, currently has a 59% stake in the licence, which it intends to relinquish.
The Oil and Gas Authority (OGA) can take up to three months to process relinquishment requests.
London-listed Parkmead Group, which is headquartered in the Granite City, has a 15% working interest and CalEnergy, a subsidiary of US firm Berkshire Hathaway Energy, has 26%.
He's probably not allowed to make any comment under confidentiality terms. There's no indication of how much either party (or maybe more than two involved?) is getting, terms etc. Probably still being negotiated. I imagine the office might be quite busy.
I missed that Zennor were not a part of Platypus anymore and had sold their stake to CalEnergy. Can't find anything about when that happened (assuming article is correct). CalEnergy website says they still have 15% rather than 26%, Zennor site doesn't mention it.
Equity companies will be falling over themselves to get in here !
Yes fair point
Fair enough... just feel a bit of comment from TC/PMG direct would be nice.
Why no RNS from Parkmead confirming as such?
All Tom's money is in Parkmead said so himself 2019 AGM
Dana trying to get out of the North sea.....aren't there assets for sale ? They have given Parkmead platypus for a song !
Market has dropped and PMG unduly punished imo so purchased 15,000 shares a min ago via HL. I expect to see 40p by the summer of this year or higher if a bid is forthcoming.
We got perth stake basically this way too...
Just need to get developing. At least platypus was well on with a development plan. Hopefully PMG can get that submitted this year once dana clear out.
This was one of the first blocks PMG took a stake in when they started up, operated by Dana, so they already knew it well, and have hung on all this time.
Interesting. Market not convinced it is a good thing or not, but this is what IC said in November:
...."Secondly, even though the move towards renewable energy is clearly gathering momentum, the fact is that the UK will be reliant on gas for decades to come while green energy supply is ramped up and the requisite infrastructure is put in place. Parkmead is well placed to benefit on two fronts as it has a 15 per cent working interest in the Platypus gas field in the UK Southern North Sea, located 10 miles north-west of the West Sole gas field, which is targeting project sanction in 2021. Dana Petroleum, CalEnergy and Zennor Petroleum are its heavyweightindustry partners. Importantly, Parkmead’s cash pile of £25.7m (24p a share) is more than sufficient to fund its estimated $21m (£15.7m) share of development costs
based on a two-well sub-sea tie-back to route gas through a 23km pipeline to Perenco’s Cleeton platform and onwards to the Dimlington gas terminal for processing. Analysts estimate Parkmead’s 15 per cent stake has an unrisked net present value (NPV) of $10m (7.4p a share) based on a long-term UK gas price of 45p per therm and a 10 per cent discount rate. Increase the gas price to 55p per therm and lower the discount rate to 8 per cent and NPV doubles to 14.2p, or half Parkmead’s share price."
Implies total project development cost of £105m and NPV $67m at 45p/therm, $128m at 55p/therm...
At first glance it seems quite a good thing to fall into their lap.
Added a few more shares as I felt the sp undervalues PMG and this news a bonus.
Excellent
Parkmead taking over as operator........Kistos looking for gas projects .
Over 200 Scientists & Doctors Call For Increased Vitamin D Use To Combat COVID-19
https://vitamindforall.org/letter.html
Conservative MP calls for nationwide rollout of vitamin D tablets to people at-risk from Covid-19 after a Spanish region sees 82% drop in deaths following supplement programme
https://www.dailymail.co.uk/sciencetech/article-9148549/Conservative-MP-calls-nationwide-rollout-vitamin-D-tablets.html
Oil companies are at a fork in the road.
They need to find a way of either diversifying or cleaning up their business.
Occidental has opted for the latter, as have ExxonMobil and Chevron. Using carbon capture and storage, the company wants to ensure that the pollution created from mining, extracting and burning oil won’t make its way into the atmosphere.
But most have instead have opted to pivot towards renewables.
Industry leaders like BP have decided that now’s the time to wean themselves off fossil fuels and pivot towards renewables – BP promising, for example, to up its wind and solar production to 50 gigawatts by 2030 and reduce oil production by 40% by 2050.
There’s one big problem for those companies pursuing the renewables approach: profitability. Or lack of it.
An oil major would expect pretty solid returns from an upstream project – in the range of 15-20%. In comparison, oil’s cleaner cousins currently offer much more modest returns, in the area of 5-10%.
The cost of producing renewable power is falling. Whether that will be enough to catch up with oil – and whether investors will be happy to wait for that to happen – is another question.
But make no mistake – names like BP, Shell, and Equinor are, at their core, still oil companies. Yes, they’ll be ramping up their renewables output, but their profits will continue to be fossil fuelled.
And investors may forgive them for their sins yet – particularly given that we’re going to continue relying on oil for a good while yet. But as I’ve argued before, oil has some life in it yet. If its price does make a strong recovery, then Big Oil will benefit.
Maybe investors will forgive them for their sins yet.
All the best,
Nathan Tipping
Research Analyst, Southbank Investment Research
Oil’s well that ends well
Nathan Tipping
Big oil’s going green. Sort of.
The onset of the pandemic last year left oil companies to do some soul searching. That fossil fuels (at least at the scale they’re used right now) have a limited lifespan was already well-known. But the pandemic has helped to run down the clock.
Occidental Petroleum, a USoil major, has made headlines this week when its CEO Vicki Hollub made a pretty big claim: Occidental is doing more to reduce greenhouse gas emission than Tesla.
That the comment made headlines in the Financial Times and Bloomberg was undoubtedly the CEO’s intention. But Hollub’s comment is just a more provocative version of what other big oil companies have been saying since March last year.
In short: “We may be an oil company, but that doesn’t mean we can’t be green too.”
It’s a claim worth unpicking a bit.
Hollub’s claim was based on the fact that the company pumped back more CO2 underground in the process of extracting oil than Tesla prevented through customers’ switch to electric vehicles.
If that sounds slightly convoluted, that’s because it is.
It also conveniently ignores one little detail: the amount of carbon that’s produced from burning oil. If you take that into account, then Occidental is about as far away from Tesla as it’s possible to be.
To be fair to Occidental, it’s a lot more ambitious when it comes to slashing carbon output than some of its USpeers. It’s the only oil major in the country with a commitment to net-zero carbon emissions by 2050.
In Europe, this is a commitment that other household names, such as Shell, BP and Equinor, have also made.
There’s a few reasons for these commitments. First and foremost, the oil price over the past year has been… temperamental, to say the least.
Investors are getting pickier too. A growing number of asset managers and pension funds are shifting away from putting their money into “dirty” industries. The same goes for banks too. In HSBC’s next AGM, 15 large institutional investors are planning to push for reduced lending to fossil-fuel related businesses. French oil major Total has opted to leave industry lobby group the American Petroleum Institute, citing lack of progress on climate policies.
And the possibility of a carbon tax is now on the cards. It’s an idea the EU has toyed with before but was shot down by Donald Trump. With Joe Biden in the White House, its fortunes could be different. France has already signalled that it’s open to the discussion on the topic.
Tricky decisions