14th Rd Dates & Deadlines28 Jul 2014 21:45
Massive oppo for ALK/EDR - had 12 moths to plan for this joint approach - this is where we should see the real commercial JV benefits Quote DEEC criteria which when viewed jointly makes sense. 14TH ROUND BIDDING CRITERIA WORK PROGRAMMES Snip bites
The Applicant must propose a Work Programme, which is the minimum amount of exploration work that the Applicant must carry out, if it should be awarded a licence, if the licence is not to expire at the end of its Initial Term. Q5: Will this licensing round include shale gas and oil? A: Yes. A PEDL licence grants exclusive rights “to search and bore for and get petroleum” in all the various stages of the full development cycle of oil and gas exploration, appraisal; production and eventually abandonment of the wells, however a PEDL licence grants no permission for specific operations. Alongside conventional onshore oil and gas exploration and development, the licence covers exploration and development of tight gas, coalbed methane (CBM), mine vent gas, oil shale and shale gas . A company that meets the following criteria will be deemed to be financially viable: positive Total Net Assets (Shareholders’ Funds); a Current Ratio of 1.00 or better; Gross Gearing of 75% or less; and Interest Cover of 2.00 or better The Criterion 8. DECC requires that each company must demonstrate adequate Financial Capacity to cover its share of the proposed Work Programme as well as all of its existing commitments. DECC will take into account contingent commitments and drill-or-drop wells as well as firm commitments. 9. DECC requires evidence of 100% funding cover for all FDP, Firm and Contingent Commitments. 11. DECC’s primary financial capacity measure is that a Company has Commitment Cover of 2.00 or better where: Commitment Cover = Net Worth/The sum of existing and proposed licence commitments Net Worth = Shareholders’ Funds less Intangible Fixed Assets 12. A company with Commitment Cover of less than 2.00 will have to prove its capacity by reference to specific funding arrangements. NB NO PROMISES -Arrangements with financial institutions or stock brokerage firms whereby they undertake to raise equity on a “best efforts” basis will not be considered as adequate evidence of funding!! FINANCIAL CAPACITY - Well Consent: Exploration and Appraisal Wells 27. DECC’s policy requirement is to ensure that no well consents are issued unless we are satisfied that the licensee(s) has(have) access to sufficient funds to meet its(their) share of the actual drilling costs, the plugging and abandonment of the well if it is proven to be “dry” or otherwise non-viable and a minimum contingency of 50% of the drilling costs. The sum of all these is referred to hereafter as the “Well Costs. DECISION MAKING CRITERIA – NON FINANCIAL 41) DECC may consider that additional factors that are not covered by, the Marks Scheme Examples could include: the Applicant&
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