Shanta Gold's CEO explains the Q2 production shortfall and emphasises the cashflow strength of SGH. Watch the full video here.
Times cites HSBC's message to investors '...to steer clear of oil stocks' contains the usual mix of gloom and doom. Within comments on the article is a good one from a Mr John Smith:
'The share prices may be treading water but the 5% and rising dividend yield is lovely in a world of negative real interest rates. The world is a long long way away from not needing the gas turbines, the polymers and the fossil fuels that these companies produce. Feel the dividend baby.'
It's time the woke brigade, including Mr & Mrs BoJo, realised that weaning ourselves off oil and gas is going to take decades rather than a few years.
Apologies for asking a question, for which I really should know the answer...
I've now received my voting papers for the EGM. Obviously, I am voting to have the culprits removed from the BoD with immediate effect. The prospective appointees to the board (John Wright and David Craik) are presumably a couple of good guys. Are their names being put forward by CA?
RE: Lloyds. Thanks for the advice, Team. I have engaged with Lloyds via on-line chat. It was all a bit clunky but I have lodged with them my request to vote against all resolutions (...best to keep it simple). I have been informed that they will mail me notification of HUR AGM through the post so this will enable me to reinforce my vote against.
I’m with Lloyds / Halifax. I received through the post relevant paperwork to enable me to vote on the Restructuring Plan proposal (which I voted against, obviously) but I have yet to receive anything to enable me to vote on AGM. Anyone else with Lloyds who is in similar position? They are very good normally at sending papers for me to vote at AGMs of my other (share holding) companies, but nothing thus far for the HUR AGM.
Genel has, in line with other operators, received a letter from the Kurdistan Regional Government proposing an amendment to the repayment schedule for monies owed. Under the communicated revised payment terms, for each cent above a monthly dated Brent average of $50/bbl, 0.2 cents per paying interest barrel produced will be received towards monies owed (previously 0.5 cents per paying interest barrel). The revised payment terms are stated by the KRG to be a result of the Dated Brent price having consistently stayed well above $50/bbl, and the ongoing challenges presented by the COVID-19 pandemic in Iraq.
The KRG has stated that the amended payment schedule will be applied to the March 2021 invoices onwards, and that payment terms will be 60 days after the submission of invoices. The KRG has also stated that, should markets see substantial volatility, it will re-evaluate this payment model, override payments, whereby Genel receives 4.5% of monthly Tawke gross field revenues, will continue.
Whilst this is disappointing for Genel and all the Kurdistan players it should be taken in context and is not actually a loss of any income merely a short term deferral. This is because the KRG are, like many other countries under pressure from the Covid virus and a modest tinkering with the pay-out formula will help Governmental cash flow in times of austerity.
Indeed the companies operating in-country are financially robust and whilst it is never a valid reason to change policy on the hoof, it was probably not envisaged to see nearly $70 oil when the plan was put in place, a price that has in some places quadrupled company pay-outs.
For Genel it should not have any material effects, they have a very busy few months ahead including a potentially bullish drilling programme, the production profile looks good and finances are strong, investors should bear in mind when worrying about today’s share price fall that the shares are ex dividend some 10 cents. I remain confident that Genel remains in a very strong position, indeed the fact that this move has been made as oil approaches $70 should and could be read as a positive.
Strange day...? Strange week. The absence of an RNS expanding on the opening day's reference to, '...MED expects to have circa 9 MW in production capacity imminently' has not helped. For those lured into MED's IPO by Clear Capital (brokers) it feels like a case of, 'Have I been taken for a ride?' Let's hope next week is an improvement on this one.
Update on Competent Person's Report Timing
Hurricane Energy plc, the UK based oil and gas company, announces that the Competent Person's Report ("CPR") on the Company's West of Shetland assets by ERC Equipoise Ltd is currently being finalised. The Company expects to issue a summary of the CPR during the week commencing 5 April 2021.
The expected timetable of principal events in relation to the General Meeting is as follows:
Event Expected time / date (London time)
Deadline for lodging Forms of Proxy with Tullow's UK registrar / CREST Proxy Instructions / online proxy 12 noon on 16 March 2021
Voting record time for the General Meeting 8.00 p.m. on 16 March 2021
General Meeting 12 noon on 18 March 2021
The Transaction also remains subject to a number of other conditions, including (i) the approval by Panoro Shareholders of the Panoro Equity Financing Arrangements at the Panoro General Meeting scheduled for 3 March 2021, (ii) release from existing security arrangements held by BNP Paribas and (iii) the delivery by Tullow and Tullow Overseas Holdings B.V. of an agreed form confirmation relating to the Tullow Convertible Bonds and Senior Notes. Subject to the satisfaction of the conditions, the Transaction is expected to complete in the first half of 2021.
TULLOW OIL PLC
2 March 2021 - Tullow Oil plc (Tullow) announces that, further to its announcement on 9 February 2021 in relation to two separate sale and purchase agreements with Panoro Energy ASA (Panoro) for all of Tullow’s assets in Equatorial Guinea (the Transaction) and the Dussafu asset in Gabon (the Dussafu Transaction), a shareholder circular relating to the Transaction (the Circular) has been published today, having received approval from the Financial Conduct Authority.
Under the UK Listing Rules, the Transaction constitutes a Class 1 transaction and is therefore conditional on, among other things, the approval of Tullow's shareholders, by a simple majority of votes cast. The Circular contains further details on the Transaction and a notice convening a general meeting of Tullow to be held at the offices of Tullow Oil plc, at 9 Chiswick Park, 566 Chiswick High Road, London W4 5XT at 12 noon (London time) on 18 March 2021 (the General Meeting) to consider and approve the Transaction. The Dussafu Transaction constitutes a Class 2 transaction under the UK Listing Rules and therefore does not require shareholder approval.
As described in the Circular, the Transaction is of importance to Tullow and the Tullow Board unanimously recommends that all shareholders vote or procure votes in favour of the resolution being proposed at the General Meeting. In light of the social distancing measures aimed at reducing the transmission of the COVID-19 virus in the United Kingdom, please note that attendance at the General Meeting in person is not possible. The General Meeting will be a closed meeting. Shareholders should not attempt to attend the General Meeting in person. Any shareholders who attempt to attend in person will be refused entry. Shareholders should instead vote in advance by proxy by appointing the Chair of the General Meeting as their proxy in respect of all of their shares to vote on their behalf. Continued shareholder engagement remains very important to Tullow and shareholders will therefore be able to listen to a live audio-cast of the General Meeting and submit questions remotely, as was possible for Tullow's 2020 Annual General Meeting. Shareholders may also submit questions in advance via ir@Tullowoil.com. Whether participating in the audio-cast or not, shareholders are strongly encouraged to appoint the Chair of the General Meeting as their proxy. Further details of the audio-cast procedures and the proxy appointment process are set out in the Circular.
Genel's red dot seems to have gone AWOL from LSE. RNS out this morning - contents as follows:
28 January 2021
Genel Energy plc
Receipt of payments for KRI oil sales
Genel Energy plc ('Genel' or 'the Company') announces that payments have been received from the Kurdistan Regional Government for oil sales during December 2020.
The Tawke partners have received a gross payment of $43.1 million, with Genel's net share of the payment being $10.5 million.
The Sarta partners have received a gross payment of $2.9 million, with Genel's net share of the payment being $1.4 million.
Payment for Taq Taq is expected in coming days following a reconciliation of 2020 costs. This payment will not be announced separately.
Q&A has just kicked off. First question came from Investec rep, so PIs are not alone in their misery. Initial qu basically 'Have you kitchen-sinked it?' HUR response is that they have 'closed off the down-side'. Break-even 10,000 bopd, so view is that they are comfortably above that.