incorrect coldjoe, the first ones are happening now, the half life of all their decommissioning costs is 2030.
tonynorstrom1 , don't post anything slightly negative on here it is frowned upon, you know! however I asked the same question about tax situation and was told by another poster that the tax rebate was not taken into account on the 1.1 billion
RE: Perfectly happy with Rockrose21 Apr 2020 07:45
LONGWAIT the honest answer is I don't really know the current costs and what would be owed if we were to sell.
A few things we do know is, there is a provision in the accounts for just over a billion $ 1,095,072,000 obviously not all due now. The half life date for decommissioning costs have been pushed out to 2030.
The UK government will be contributing 40%/60% of the costs we have to spend to do the job, but I assume that has been taken into account on the above figure so not sure it that is relevant.
The money set aside for decommissioning has been pulled back into the accounts as cash via the provision of the Surety bonds on which we must be paying interest. The reason for this I assume is to give the opportunity to make another deal otherwise why do it.
Now I could be wrong on any of the above to please feel free to pick me up on any thing I have not understood correctly as I have only been involved here for about a month.
RE: Perfectly happy with Rockrose20 Apr 2020 21:35
As much as I like this company your statement " Not surprised we ended up, lets face it the company could close up shop and we would all get £22 a share..lol" is simply not true. We would have to give the money for the decommissioning costs to the company who we would sell to, just like Marathon did.
True lsetown there are decommissioning costs associated with Rockrose but I think the time line has been pushed out to 2030 at least for these costs to be found, and I believe they are looking at more efficient ways to manage these costs in the future. Anyways that's why a bit of due diligence needs to be done. LOL
Sorry a bit off topic but it is a bank holiday weekend!
Excellent post surfit, Rockrose is where my money has been going into , since I discovered it three weeks ago. This company knows how to do things.
The market is still to wake up to the potential here:
Trading at about a third of the cash on the books Producing 20,000 barrels a day CEO owns 29% of the company, real skin in the game. A CEO who knows how to make deals. Pays a dividend with the stated view of continuing this practice. Majority of assets are in the North sea so very stable environment.
So wish they were running RKH without PMO, as I have no faith in RKH management and Premiers debt pile.
Do yourselves a favor and do a bit of research into Rockrose this weekend!
I see my last post has gone missing so to repeat When is our CEO and board going to cut their pay? Just what will it take? 2 more companies have cut pay today Trainline CEO cut 50% Redrow cut 20% across the board And I have just heard Premier footballer player are to cut their wages to.
Does anyone on here have a very good understanding of these Surety Bonds, good enough to explain exactly how these work in layman's terms. who is lending to who what interest is being paid is it money we have to find in the future? a full explanation would be great if anyone can?
Below is from the presentation
Restricted cash reduced ? The Group has now replaced all cash securities held in trust in respect of DSAs with decommissioning surety bonds. ? At the end of 2019, the Group had in issue $206.5 million of surety bonds with A rated surety providers.