RE: sp15 Aug 2018 12:17
Boyzee,
"The cynical amongst us might be thinking, go it alone but we.ll need another large raise or combo."
What, go it alone for FFD? It's out of the question. You're talking meqa-project. Tens of billions in investment. Hurricane's fundraise for EPS was impressive, but there's no way they could fund FFD. That's why Dr T talks about 'Majors'. And even with Majors, it'd probably be a consortium of them.
Plus that's just base financial considerations.
EPS is different, and Hurricane's already 'gone it alone' with that. And can continue doing so. Essentially if all goes to plan, it will be self-funding (given that it's already paid for 'til startup) plus with profit enough to finance a couple more wells that can be tied in. OK, four wells would probably (almost certainly) be capable of exceeding the throughput capacity of the FPSO's production train, but like that there would be redundency incorporated, which there isn't with the present two wells.
And from that point, Hurricane can happily continue, with the EPS chugging away, until the cows come home, if need be. Or until they strike a deal which suits Hurricane itself: the 'position of strangth' Dr T talks about.
This is what makes me chuckle a bit about ongoing discussions regarding farmout, sale, or whatever. We've been informed that negotiations with interested parties should start sometime between six months to a year after EPS FoiL. But there's absolutely no reason to believe (in my opinion) that once such meetings begin, some deal will be struck within a few weeks or a few months. And anyway it's exceedingly unusual for Big Oil to make big decisions quickly!
OK, it's quite possible that people like BP and Shell have got one or two people working on the feasability of buying into GLA / GWA or even buying them outright, working up a tentative development plan, and so on. But we're not anywhare near the point where the contract lawyers start talking to each other or they start figuring out where the money will come from. And no closer to them talking with their own shareholders about such a plan, either.
So such a thing could quite concievably still be years further on up the road. And from Hurricane's point of view, and assuming EPS is showing a profit, what's the rush, anyway? It's not as though the oil's going to evaporate, nor anything like that.
Difficult enough trying to figure out what the crystal ball's realistically suggesting about the next six months, without trying to plumb the depths of what might be years.
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