Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Don't think Cyclops, or the rest of us, need to disappear up our own *rses on PMO's RNSs re capitalised costs.
What exacty is Cyclops saying? Of course Isobel isn't going to be developed as part of phase 1!
I don't think any of us are gurus on international financial reporting standards for capitalised exploration and development costs. But the point is PMO have publicly, as we have all known for months, paused the project in terms of its engineering costs, ie except for commercial, financial and regulatory matters and anyone with an ounce of sense, integrity or commercial nouse would see a change in accounting for capitalised costs in that context.
It doesn't change anything apart from further impairing old Cyclops' vision!
But yes, Isobel is potentially an absolute diamond. Its the further development opportunities, ie Isobel, that are the real carrot for Navitas.
Hey Cyan
I am not hearing much in the way of rumour regarding Apache. Was it a few articals spining off Street Insider a month back, that have given rise to such thoughts...or is there more?
Mind you I thought Rockrose were going to buy assets and got in fact got bought out! So shows what I know (or the RRE LSE bb) but also how suprisingly quiet "news" can be kept. Theres a fit but can Apache raise such capital in such times?
Navitas are struggling ( no need to give up, they have still not signed to commit, so can string it out for ages) to get it done, although to be fair they only had around 9 month to get any cash raised before Covid sent us back to 2013.
I dont think its over, but the only thing that will confirm it is Navitas...OM is just a reprieve for RKH BoD's as we have consistantley seen Sobel and Stewart are only good at blowing cash: more Keerrrrching and no one to stop us, best job ever chaps (-:
Rgds Sft
We have to hang on to whatever positives we can find in these recent developments.
PMO have had a torrid time with their own financial issues BUT it does appear that things are getting resolved.
A vaccine for Covid should arrive in 2021 and from there we will see a recovery in economies .
The price of POO is critical to PMO's and our future. Am pleased to see a significant recovery of POO in the worst economic environment in a lifetime.
With POO now circa $44 it is $4 ABOVE phase 1 break-even costs. HOWEVER; we really need to get to about $55 for our partners and financiers to feel comfortable with investing.
Am a little concerned about the reports of Apache looking to takeover PMO; not good imo.
I wonder if the write off came about as parties poured over the books for estimating what PMO's assets are really worth. Will Apache want to keep SEALION? I am a little bothered they won't want to keep it.
I think the FIG better wake up to the risks that the oil riches may never arrive; they had better sweeten the deal.
I think ARG and BOR are doomed . ARG has not even found anything ; they want a rich partner to explore; fat chance , imo.
Hi Cyan, thank for putting out some detail and conformation / clarity on where Isobels development sits.
If SL (phase 1) does get sanctioned and if it is a success THEN my guess is everybody sits down to renegotiates phase 2.
It may be that PMO have to write off that money due to the new contract deal that has been negotiated with PMO/RKH/NAVITAS phase 1?
Really difficult to understand what has been negotiated in the fine detail???
But it obvious that the cash is not avaiable for phase 2 at this time.
To get phase 1 sanctioned would be a major step and any furter developments would be subject to how phase 1 went, PoO and world OnG requirements at the time if it got sanctioned 2021 it would be 2024.5 (3.5yrs according to the info in the link you posted) for first oil. After the last 2 crashes 2013 to 2018 and 2020 to 20XX? Its probabley a realistic view??
Is there any tax benifits for PMO to write the cash off presentely?
All the best Sft
Good afternoon Surfit
Yes, there is a lot of oil in the NFB . But we have to remember this ISOBEL was part of a possible phase 3 development..
Phase 1 has circa 250 million barrels; phase 2 is even better 270 million plus.
The bad news is that on 15th July 2020 PMO RNS'd with these lines included;
"Premier expects to write off c.$200 million of exploration expenditure relating to its acreage in the North Falklands basin which will not be developed as part of its Sea Lion Phase 1 project."
What are the chances that anything other than just phase 1 are going to be developed.?
Here is a link to details of the Navitas farmin before PMO signalled a partial retreat.
hTTsps://rockhopperexploration.co.uk/wp-content/uploads/2020/01/Investor-Presentation-Navitas-HoT-7-Jan-2020v3-1.pdf
HenryG, correct reminder on Isobel. Investors need to remember that.
Rgds Sft
Problem is henry, big sam decided to opt for freebies and go on safari
The Isobel discovery was not finally appraised because the rig broke down ie turned out to be not fit for purpose but the discovery ie the column of oil was very very encouraging.
Godawful, when was the last time you actually added any value on this site?
No new insight, ever
You may find something here for yourself that makes it worth a visit but ... that's it from you.
Or could make an effort eh, why not!
But expect we'll just get more of the same unchanging tripe in return.
Hi
Dead easy , big sam freebies....£5-7p
From Merco Press Jan 2016,
You have to ask why RKH did not engage another partner for Isobel.
https://en.mercopress.com/2016/01/11/falklands-reveals-oil-at-the-isobel-elaine-project-and-several-adjoining-fans
Adonis, you seem to have neglected purposely or not the Isobel drill which showed a huge column of oil and is thought to hold more oil than Sealion.
Ovets...Remarkable bird, the Norwegian Blue.....
Adonis, I think it should be pointed out that RKH reached the dizzy heights of about 515p (not 560p) for about an instant on 23/9/10 and was around 500p only for a few days, during a period of exceptional euphoria, so I wouldn't quote that as a realistic high.
Yes it's collapsed spectacularly, but let's not exaggerate things just to elaborate a story.
And there have been plenty of opportunities to trade profitably during the time since then, which so many here ignore/forget to mention.
Many like me have said all along that it's not much more than a bet, so those who moan, etc., are not seeing things clearly.
You go to the races, or the casino and you place a bet and you can lose the lot in a few minutes. Here you've had the chance to trade and/or hang on and see if something good comes out of it.
Some say things will never be the same, which is probable and some say that oil is finished because of COVID and climate change.
I agree with those who reckon that in order for economies to recover more quickly, oil will be a big part of that recovery, despite the risks to the planet, while work continues so to develop renewables, which can then take over more quickly.
In the mean time, many exploration projects will have been canned and weaker shale companies gone to the wall, so for survivors, with "shovel-ready" oil project, things look quite good.
If you ask me, there's a lot of haggling/negotiating going on in the background, there's gamesmanship going on and much more besides.
Earlier this year I posted that as long as there were no more banana skins, things might actually come right - no one saw the banana plantation that was about to hit us, but if you've got the balls and can afford to lose the lot, I'd say hang on, because there are many who really want to be part of getting Sea Lion into production. Those will be negotiating/haggling/planning like mad at the moment in order to press the "GO" button, once a vaccine is available.
It's not dead yet - just resting!
Adonis, I was there too.
The current development plan doesn’t include a large proportion of discovered oil - it’s in 2/3 phases. I don’t think lack of oil was the problem, it was a cash-stretched & debt-ridden operator coupled with a couple of major oil price downturns that explains why the share price is where it is.
Adonis, that is presumably why so many ii's put in money to fully appraise Sealion....
Cubane
I would really like to see the FIG help out in order to bring the breakeven price down further. Once Sea Lion gets underway the other developments will follow, but they have to make that first development attractive enough.
Oh and a positive Ombrina Mare outcome would be most welcome!
One well struck oil?!
There were plenty of other oil discoveries in addition to Sea Lion. Isobel looks like it could be even bigger than Sea Lion. It’s not a question of whether there is enough oil in the NFB, there is plenty. The mistake RKH made was getting into bed with PMO - they’ve been unlucky with oil price crashes since but being tied to PMO has exacerbated that.
I agree if they do not happen then this company is in trouble.
Every investment holds risk, if you can't afford to lose it don't invest it.
My point is though at 7p the potential returns are huge and really should I be shouted down for that ?
I'm in rkh with an 8p average
Well happy !!!!!!
"Even if you're in higher it's a chance to bring down your average.
If the stars align and nav sign, the fig sign and they win obrina."
One more if to add to the three you posted ...
If the price of oil improves and stays higher and yes you can lose at 7p this company could finish up worth nothing with their current cash burn if the if`s do not happen.
I've never known a share be de ramped as badly as rockhopper.
I appreciate that alot of investors are in the red with this share, but at this price I believe it is an absolute bargain.
A 7p sp and you surely can't lose .
Even if you're in higher it's a chance to bring down your average.
If the stars align and nav sign, the fig sign and they win obrina mare arbitration this share will absolutely fly.
Saying this on another forum I've been hounded none stop.
Any thoughts ?