Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
CJ1986
The style is rather reminiscent of another banned alias from your murky past.
Reported to LSE for multiple breaches of the LSE T's & C's - good riddance to bad rubbish !
DEM
"I do not want the board dominated by these whingers, who offer nothing constructive but simply constantly whinge & moan about all things Rockhopper, without putting any realistic, relevant, balanced & critical arguments forward". (Glen69)
https://rb.gy/okwdo
DEM
"I do not want the board dominated by these whingers, who offer nothing constructive but simply constantly whinge & moan about all things Rockhopper, without putting any realistic, relevant, balanced & critical arguments forward". (Glen69)
https://rb.gy/80qbb
DEM
Whilst Glenrothes1969 in his recent reincarnation as Chessmaster1234 hones his latest insults against genuine posters - important real news is being released !
According to yesterday's Law Gazette:
'Shockwaves' as Supreme Court rules litigation funding deals unenforceable
"Litigation funders will have to redraft the terms of their agreements following a widely awaited ruling by the Supreme Court this morning. In PACCAR Inc & Ors v Competition Appeal Tribunal & Ors, four out of five justices ruled that such agreements fall within the statutory definition of damages-based agreements (DBAs). As they had been entered in to without satisfying conditions for DBAs, they were therefore unenforceable.
The ruling concerned collective proceedings brought against truck manufacturers following a European Commission decision that five companies had operated a cartel. The proceedings were supported by litigation funding agreements under which the funder’s remuneration is calculated by reference to a share of the damages ultimately recovered.
Alice Darling, senior associate at magic circle firm Clifford Chance, said the decision 'has rendered many funding agreements currently in place unenforceable'.
https://www.lawgazette.co.uk/law/shockwaves-as-supreme-court-rules-litigation-funding-deals-unenforceable/5116775.article
Also:
'The Supreme Court finds that litigation funding agreements (“LFAs”) are damages-based agreements (“DBAs”) within the meaning of the legislation regulating DBAs'
https://www.clydeco.com/en/insights/2023/07/the-supreme-court-finds-that-litigation-funding-ag
And:
Uncertainty for funders after UK Supreme Court ruling
The UK Supreme Court has raised doubts about the enforceability of many litigation funding agreements in England and Wales, as funders look set to review the terms of their agreements.
https://rb.gy/80qbb
Early days as Harbour Litigation is a US listed company and if the Award is pursued through the US Courts - none of this may apply. However, as the UK is a global leader in the world of arbitration I doubt that the Supreme Court ruling will have no impact in other jurisdictions.
I can see no downside for RKH and there just might be the opportunity to negotiate a more favourable new contract if this is required. As currently RKH may end up paying Harbour as much as €40m on a €200m payout - there is plenty of scope for Harbour to 'make a gesture'.
Interesting times.
DEM
"but you omitted to say that Rkh can sell the award, in full or part after annulment and that could generate a minimum of $75mln ($50mln net to rkh) after annulment", (Chessmaster)
I don't recall seeing the $75m figure mentioned before - are you able to share your source for this figure ?
Your $50m net figure assumes a 33% payment to Harbour, rather than the 20% figure quoted by SM in the RNS of 24-08-2022 'assuming full recovery of the award'. We know that the Harbour fees are on a sliding scale but its never been published. So, once again, would be interested to know the source.
I seem to recall that we enjoyed a few drinks, probably after an O&G AGM (HUR ?) discussing CCI and related topics.
DEM
Bristow Group responsible for Search and Rescue, SAR, and aircraft support solutions at Mount Pleasant Complex, in the Falkland Islands moved a new helicopter frame by road from Mare Harbour to Heli-Ops on Friday 6 July.
The move started at 1200 from Mare Harbour, at a walking pace, and passed the air terminal in time before the arrival of the airbridge at 1600hrs.
The helicopter frame is of the second much newer and eagerly anticipated Sikorsky S92A which replaces Sikorsky S61N.
The helicopter was delivered on the Falkland Islands Resupply Ship (FIRS) and transported to the Bristow hangar at MPC, HQ of the British Forces South Atlantic Islands.
https://en.mercopress.com/2023/07/08/new-sikorsky-bristow-helicopter-unloaded-at-falklands-mpa
DEM
Why is it called bonefish?
Commonly, bonefish are named for the many fine bones they contain. English common names include banana, bananafish, Indo-Pacific bonefish, ladyfish, round jaw, salmon peel, tarpon, tenny, and tenpounder.
What do bonefish eat?
The bonefish feeds on benthic worms, fry, crustaceans, and mollusks. Ledges, drop-offs, and clean, healthy seagrass beds yield abundant small prey such as crabs and shrimp. It may follow stingrays to catch the small animals they root from the substrate.
Why are bonefish so tough to catch ?
Not only are bonefish naturally good at hiding, but they're also elusive and incredibly stealthy. From making sure that you aren't wearing bright colours or covered in distinctive smells, to timing, measuring, and presenting your casts perfectly, there's a lot that must be done to successfully nab one.
Are bonefish aggressive?
Bonefish are fast, aggressive, and provide that rush of adrenaline every angler seeks. At times they can be difficult to spot and catch but with some pointers, everyone can be well on their way to landing their first bonefish. Bonefish are notoriously wary and great skill must be taken both in approach and presentation when fishing for them. English speaking fishermen often refer to them as “grey ghosts."
Can you eat bonefish?
Additionally, you can only eat the small bonefish of about six inches or under, as the bigger ones may contain a toxin called clupeotoxin, a poison that is common in plankton-eating fish. This poison leads to death in about 50% of the cases, which is extremely high.
How strange that any genuine poster should choose an alias named after such an unpleasant creature.
So, Ladyfish or Banana or whoever you are - be gone and take your poisonous toxins elsewhere. You have no place here.
DEM
Great link yesterday from pauldrayton:
"My client that is a leader within the Oil and Gas Industry has a key requirement for a COMPEX electrician to carry out remedial works on the Falkland Islands. * This is a 6 weeks contract, all expenses paid. * Carrying out remedial works. * Must have COMPEX experience. * Paying £350 per day, starts August".
According to Google: 'CompEx is the leading national training, assessment and certification scheme for electricians and other electro-technical craftspersons working in potentially hazardous or explosive atmospheres'.
Some of you may recall that as part of their exit from the FI, Harbour Energy came to an agreement with Navitas, Rockhopper and FIG that the ownership of the 'Temporary Dock Facility' (TDF), aka the ‘Noble Frontier Barge’, would be transferred to the remaining JV partners. This provided both a 'clean exit for Harbour' and 'scope to upgrade for Sea Lion development'.
I seem to recall that the original plan was for FIG to build a new Port facility at Port Stanley to replace FIPASS. This would have entailed both FIPASS and the TDF being dismantled and removed. Unfortunately, FIG appears to have rejected the detailed proposals by BAM Nutall on grounds of cost and is still some years away from having a brand new Port. At a stroke this has conveniently converted the TDF from being an expensive liability into a rather useful asset. It now seems very likely that the TDF will be used for Sea Lion related berthing freeing up FIPASS for all other non-SL related shipping. In time, FIG itself may also need the TDF, as the old Port structure (FIPASS) will have to be removed before the new Port - which will occupy the same footprint - can be completed. This may result in a 'capability gap' of several months.
The TDF is approx. 250m East of FIPASS and the single barge & causeway is only approx 15% of the total size of FIPASS. If you type ‘FIPASS Port Stanley’ into the search box of Google Earth Pro – you can zoom into both structures. We know that the TDF requires some remedial works including maintenance work to the footbridge. I would not be surprised if the bridge also carries all the electrical cabling to the barge which may also require some renewal and upgrading to cope with the SL production traffic. With Stanley Services Fuel Depot closeby, I assume that there may also be a pipeline running under the footbridge to the TDF. The combination of possible fumes from the fuel pipes + high voltage cabling, may explain why the advert specifies a CompEx qualified electrician.
The advert seeks one electrician for six weeks - so this is not going to be major works to the Power Station or at Mount Pleasant, who doubtless have their own electricians anyway.
Getting the TDF up and running in Q3 2023 seems a very logical and welcome 'next step' .
Another box ticked!
DEM
As regards the sometimes slightly odd behaviour of the three parties in the case:
I think the RoI lawyers pathological aversion to co-operating with even the simplest request/instruction/time frame from the Arbiters is easily explained. Of the four possible grounds for an Annulment - the most promising one from RoI's viewpoint is that 'the Tribunal has manifestly exceeded its powers'. Each time that RoI meekly obeys the instructions from ICSID - their argument that ICSID has no jurisdiction becomes less tenable. In any case the legal team - all employed by the State - will no doubt do whatever their political masters instruct, regardless of commercial logic or reasonable behaviour.
In a similar vein - by bending over backwards at every opportunity, ICSID has clearly demonstrated their determination to avoid any future accusation that they have not allowed RoI every possible opportunity to state their case. ICSID is anxious to both maintain their legal supremacy over European institutions and to create 'bomb proof' case law to be quoted in similar future cases.
Finally, Sam is probably more than content for the OM Award to continue increasing in value at €1.25m per month. The company does not at present need the monies and as I have commented before - once the €200m hits the RKH coffers - the company will be like the unfortunate elk in the Larson cartoon.
https://www.whitebirdrising.com/youre-a-change-agent-bummer-of-a-birthmark/
As regards time scales:
I remain convinced that all time scales quoted in the ICSID Handbook refer to working days, not calendar days. For example in Regulation 29 on page 69 in the 'Administrative and Financial Regulations' - discussing time limits relating to the delivery of 'notifications and instruments' - the clause states that weekends and bank holidays will not apply. It would be illogical to accept that they should apply in other time limits. (However, I accept that this is not clearly stated one way or the other).
The RKH RNS dated 25th April states that: "Rockhopper shall, within 30 days of the date of the decision, apprise the Committee of arrangements agreed with Italy for the mitigation of the risk of non-recoupment or that negotiations have failed and, in the latter event, propose concrete arrangements in accordance with the decision for the mitigation of the risk of non-recoupment. Italy may then briefly comment on Rockhopper's proposal within 10 days, constructively highlighting any areas of disagreement between the Parties".
So the 30 day time limit from the 'decision' date of April 24th will be Fri 9th June allowing for 10 Sat/Sun and 3 Bank Holidays. So, I would not be too surprised if there is an RNS in the next couple of days. The 10 day additional time limit will expire on Mon 26th June, counting working days only. An RNS a day or two later is timely with the AGM on the 29th.
DEM
Harbour Energy planning to merge with Talos - with main listing on NYSE and presumably delisting from LSE ?
https://www.xm.com/research/markets/allNews/reuters/north-sea-oil-producer-harbour-in-merger-talks-with-talos-sources-53559390
Possibly just as well that Harbour did not proceed with Sea Lion !
DEM
These three replies by the Rt Hon Lord (Zac) Goldsmith of Richmond - Government Minister of State for Overseas Territories, Commonwealth, Energy, Climate and Environment - to questions asked by Baroness Bennett (Green Party) are very informative. Essentially, whilst UKEF is off limits - Falklands oil has the green light and with HMG blessing, providing the FI want it. Another box ticked.
3 April 2023
"As a self-governing Overseas Territory, economic development, including the development and exploitation of hydrocarbons, is a matter for the Falkland Islands Government, in accordance with all relevant laws. The UK Government supports the right of the Falkland Islanders to develop their natural resources for their own economic benefit. This is an integral part of their right of self-determination. The UK Government is working closely with the Falkland Islands Government to support their right to develop its hydrocarbons resources and we are ready to offer UK expertise on how to mitigate environmental impacts, including emissions".
5 April 2023
"The UK Government regularly discusses development of a Falkland Islands hydrocarbons industry with the Falkland Islands Government and is working with the Falkland Islanders to ensure they can access UK expertise. Policy on hydrocarbons development in the Falkland Islands is a matter for the Falkland Islands Government. With UK Government support, the Falkland Islands Government is ensuring they are able to identify, assess and manage risks, including environmental risks".
5 April 2023
"As the Falkland Islands Government is a self-governing Overseas Territory, hydrocarbons development in the Falkland Islands is a matter for the Falkland Islands Government, in accordance with all relevant laws. There is no change to His Majesty's Government's policy of not using UK export credits to fund fossil fuel projects and the financing of a future production phase is a commercial decision for the Falkland Islands Government and the companies involved. We continue to engage internationally in pursuit of global environmental targets".
Mogger - thanks again for the diligent research. If you could get in touch via the gmail address I mentioned about six weeks ago to another poster - I would be most grateful.
DEM
Morning All
"Whilst our focus is very much on getting Sea Lion up and running, we continue to work up prospectivity in the SFB where we have what we believe to be a direct analogue feature to the large Darwin discovery held by Borders & Southern Petroleum in adjacent acreage". (Probably increases the chances that BOR will get developed one day)
"Italy has refused to comply with the Panels instructions. Rockhopper intends to continue to work in good faith to resolve the issues raised regarding non-recoupment and has submitted to the Panel its proposal to mitigate this risk. The provisional stay remains in force during this time, pending further orders from the Committee". (As expected, RoI continue to play the Villain in the OM saga and RKH demonstrate yet again to ICSID that they are the Good Guys).
"Now is therefore an appropriate time for change as we move into a new phase for the Company, having passed through important milestones on both those fronts. In light of this we plan to phase in a new board led by a new chair. Their focus will be on recovering our tribunal Award and working with the Falkland Islands and UK governments, as well as Navitas, to move towards approval of the Sea Lion development. Work to identify a new chair is underway and we hope to have made the appointment by Q4 of this year." (Not unexpected, as RKH transitions from being an Explorer to a proper grown up Producer - we need a BOD to match. Almost certainly a new FD as well.)
"Having anticipated Italy might attempt to annul the Award, Rockhopper had a non-binding offer in place to fund both fighting the annulment and enforcing the Award. The Group has instead chosen to use existing resources to fund all legal costs arising from contesting the request by Italy for annulment whilst it explores all acceptable funding possibilities. (Sensible, as once the Annulment request has been refused, no doubt there will be better offers on the table to finance Enforcement - which I am certain will proceed post-haste.
The Tax Settlement Deed also states that the Group is entitled to make adjustments to the outstanding tax liability if and to the extent that the Commissioner is satisfied that any part of the Development Carry becomes irrecoverable. ..... We are currently engaged with FIG formalising the tax implications of the termination of the 2012 Premier Oil farm down which resulted in irrecoverable carry of approximately US$ 670 million. (Seems like most/all of the £59.6m potential tax bill may disappear).
"At 31 December 2022, the Group had cash and cash equivalents and term deposits of US$9.8 million and $7.3 million as at 30 April 2023". PLUS "Assuming the share price is in excess of 9 pence, which it is at time of writing, the Group expects the majority of these (56.5m) warrants to be exercised providing additional funds of up to £5million". Why on Earth would holders of 9p Warrants not exercise them if the SP is 15-20p? Am sure 80% + will convert
Agreed BB - Repsol would make an excellent partner - as would Hess who also have old scores to settle:
Repsol (Spain) – In 2012 President Kirchner proposed the expropriation of 51% of Repsol shares in YPF. Long court case ensued and eventually Argentina were compelled to pay $5bn compensation.
https://www.forbes.com/sites/afontevecchia/2012/04/18/us-condemns-ypf-expropriation-as-spain-argentina-trade-war-nears/?sh=316fb9127352
Hess (USA) – US major global independent energy company, still run by the Hess family (one of the leading Jewish companies in NY). Never forgiven Argentina for the Hercules incident in 1982.
https://www.nytimes.com/1982/06/09/world/tanker-attacked-in-south-atlantic.html
There is of course another US Independent who are not unfamiliar with Sea Lion.
Favourite is probably Delek - the Israeli Gas giant for whom most of the Navitas Senior Mngt team used to work.
Interesting times.
DEM
Thanks PD
I assume that one of the key benefits of -
'Examining the possibility of introducing another partner to the project before the decision date The final investment (FID.)'
will be to introduce 'additional new money' to the JV which should make the overall funding easier and hopefully hasten first oil.
DEM
Https://maya.tase.co.il/reports/details/1524046/2/0
Enjoy !
DEM
Evening Glenrothes
Thought you had abandoned Valley Man ('Mr Memory) after your embarrassing defenestration on 15 Aug 2022.
After all the bull**** & bluster generated by your multiple aliases over the issuance of Warrants last year - I would have thought you know the answer to your question.
Are you intending to be at your Maiden AGM this year ?
DEM
The entire Hansard report of the 'Overseas Territories' debate is well worth reading and provides a rare account as to the trials and tribulations faced by the UK's Overseas Territories. Apart from the Sea Lion quote, there are a few other interesting comments for FI Twitchers.
"I draw the House’s attention to another area where the Falklanders require our support. Under the United Nations Committee of 24, the Falkland Islands is currently classified as a non-self-governing territory, but we know that is factually incorrect, both under the first Falklands constitution, signed in 1985, and under the new constitution, signed into law by Her Majesty the Queen in 2009. The Falkland Islands is self-governing but willing to refer its foreign and defence policy to the United Kingdom. The Government should help the Falklands to correct that misclassification, so that the Falkland Islands will be recognised at the UN as the proud, self-governing territory that it is". Alicia Kearns - col. 500 (Perhaps facilitated by a strong revenue steam from Sea Lion. With a Global Top 10 GDP and growing Sovereign Wealth Fund with new infrastructure, healthcare, hotels etc and a steadily rising population - the FI begins to look like a strong, independent territory with powerful friends.
"There is widespread frustration about just how difficult it is to engage in even basic dialogue with Government Departments. Surely, given our belief in self-determination, it is only right that overseas territories make their own case to Government Departments, rather than relying on the Foreign Office to act as messenger". Alicia Kearns - col. 501 (So FIG can now make the case for Sea Lion directly to the Treasury rather than via FCD).
"As a leading global economy, the UK can borrow money at beneficial rates, but this option is not available to our overseas territories. During the pandemic, we allowed Gibraltar to borrow £500 million under a sovereign guarantee, thereby protecting the Rock’s economy at a time of economic instability. When we can, we should use our economic clout to support our overseas territories to develop sustainably, to grow their opportunity and prosperity, and to invest in infrastructure". Alicia Kearns - col. 502 (Funding for new port or maybe even Sea Lion ?)
"One potential solution (need to diversify away from fisheries) is the extraction of oil. Of course, that must be done extremely carefully, given our commitment to net zero, but I very much hope that the Treasury will give the proposals that are currently in front of it—known as Project Sea Lion—extremely serious consideration". Rob Butler - col 523
https://hansard.parliament.uk/commons/2023-05-11/debates/CCC3D872-ADFF-4439-A7C4-7AAFA81EBF33/OverseasTerritories
My thanks to Mogger - once again - for another cracking find. Most illuminating !
DEM
No problem and no apology needed ! In fact, given the Alice in Wonderland nature of British politics in the past two years - he could so easily have been Sec of State.
I doubt very much whether any investors in Gulf Keystone, back in 2018, would have predicted that the company's Chief Strategy Officer (Nadhim Zahawi) and an obscure back bencher, would by 2022, be Chancellor of the Exchequer after the resignation of Rishi Sunak. He lasted eight weeks.
DEM
Rob Butler only got elected to Parliament in 2019, so I thought it unlikely he was Sec of State for FCD so early in his career. According to Wiki, Rob Butler was Liz Truss' bag carrier (Parliamentary Private Sec) for the few weeks that she was Secretary of State for Foreign, Commonwealth, and Development Affairs.
On that basis, I wonder if it was Truss who was responsible for promoting the Sea Lion Project to the Treasury ? Butler would doubtless have been aware of the situation and may be trying to score a few brownie points - particularly if he thinks that an Announcement may be pending.
DEM
According to the FCA webpage - 'Short Positions Daily Update' on rt side of page - there are no current Short Positions listed for Rockhopper under the 'Current Disclosures 03.05.2023' tab:
https://www.fca.org.uk/markets/short-selling/notification-disclosure-net-short-positions
The shorts appear to have all been closed which may account for the recent rise in the SP.
DEM