Member Info for eegbvi

You never quite know what the next twist will be here. I note that if an offer of 10% more comes in then all the present directors share pledges get overturned. So another $10 mln is all that's needed. Maybe even PMO will think that one through. But I wouldn't like a straight cash offer at this price. On another issue it looks like Shell will get Chinese and Australian approval re the BG deal so then its a straightforward shareholder vote to make Shell overtake Exxon. Apparently Shell has persuaded its main shareholders that the gas and oil price will rise before too long so maybe their talks with the various Gulf oil companies will bear fruit within OPEC. Hope so.

See you've switched to RKH bb. Obviously confident that RKH/FOGL is the only game in town. You may be right but pre Isobel result. I think its a little too early as if that's good who knows what may come out of the woodwork.

Don't bother, just read the latest Tuggy post on ARG. It looks as though he's the paid NBL cheer leader but I'm quite sure he isn't. Goodness knows what the reaction will be if Rhea doesn't quite come up to expectations

I work with JRs all the time from Saudi Aramco so probably know a bit more than you do. And no I wasn't having a pop at ARG as you seem to think. And yes I am a main board director of an oil co. And yes I'm in the middle of an AIM reverse take over at present which if it goes ok will have an awful lot of very happy PIs so please don't waste your time any more with your totally unwarranted and often inaccurate remarks. I am well aware of your total devotion to ARG and hope it all comes off for you as the cheer leader. I really do.

Good luck, you might just need it. Personally I don't trust anyone from that part of the world. Seen too many of them. If you go back to the 70s TV Dallas series little old JR typifies them.

See if it puts the cat among the pigeons then. The Advisors RBC etc are the ones to work as FOGL is probably just their mouthpiece.

Agreed, but will they ??

Its going to be very interesting to see how ARG fares with its NBL deal. NBL has a major problem with its Rosetta shale oil deal plus has a Leviathan gas field problem but recently farmed down some of its expensive Cyprus problem. The Houston lot are still shooting from the hip though and making a general mess.

Just got round to really reading all the merger documents as I have been travelling all week. Re 9.3 The 'certain security' wording really can mean almost anything when applied to all FOGL's leases as it doesn't actually specify anything. I strongly suspect that as it seems they are talking only of $15mln as a backstop it will merely be a small percentage covering all the block leases or perhaps even 'first oil' from any of them so we are I hope back to sloppy wording of the announcement. And FOGL plus even NBL seem to accept that later in 2016 insurance plus other claims will more than cover the debt. Indeed as it is there was $8.7 mln cash plus a further $5 mln due from PMO/RKH so the only real shortfall thereafter would be all the FOGL office running expenses which could be easily covered by a small share issue. The problem there though is it would still leave FOGL short of $100mln to $150mln needed to carry on in FI and there will be no income from there until 2018/19 at earliest. Looking at that its almost odds on that even RKH will need to raise more funds in late 2016 early 2017 re the NFB although by then it should be aided by a higher oil price.

I didn't think desire petroleum is an operational company but may perhaps still hold all its NFB block leases. I had assumed that FOGL had transferred them all post the merger but if not then they are idiots Should that be the case then I can well see the rush for the merger as NBL & EDN has a lien on that little lot including Isobel via the Des shares if that is what has been pledged. So the sooner that NBL/EDN debt is dealt with the better. Its just got a whole lot worse if you are correct as I assume it could be the entire Des shares not simply some of them. Now we have a JV partner which has just given most its underlying assets as security for a relatively small debt. Think they would have been better off with a Wonga loan. I'm afraid the present FOGL BoD really shouldn't be in business. (Any business !!) Is that Ok AP. ??

I use windows 10 mobile everywhere its just that I'm a bit lazy and forget to turn it. Don't worry though I will try in future just for you. Forget iphone its not in the same league.

No offence taken and I'm not in the least emotional, its not worth that. I wasn't aware that FOGL had any operational subsidiaries though particularly as its a non operational company. What are they and what do they do. ?? If that's the case that shares in such companies have been pledged then frankly its all a storm in a teacup since all the oil blocks are all in FOGL's own name are they not. ?? If so then NBL/EDN have very little by way of security.

Yes I know what the wording says but I repeat that FOGL would require written approval from PMO/RKH to assign any of its JV rights away. That would be extremely unlikely as to do so PMO/RKH would be effectively waiving their own pre-emptive rights. FOGL's 40% etc in NFB goes first to PMO/RKH not NBL/EDN. However it may well be that Susan and Helen are included in any lien. We will have to see what happens next but first FOGL needs to get itself FIG approval to the proposed merger. It did occur to me though that all the assignment/lien talk may have been simply to push RKH to make its mind up but perhaps I'm a bit cynical.

Sorry but if its a normal JV FOGL cannot assign its rights away without the written approval of its partners who have pre-emptive rights themselves re Isobel plus Zebedee etc. That may even include both Susan and Helen also if those two have already been discussed with PMO/RKH. I suspect that in fact NBL/EDN simply have a lien over the 100% FOGL SFB but of course that isn't spelt out properly to FOGL shareholders probably due to sloppy wording. We shall see what happens next but the debt to NBL/EDN does seem to be peanuts in the grand scheme of things. I really can't see it being enforced too vigorously as to do so may well land NBL/EDN into quite an expensive drilling program re FIG for SFB and that they won't want re a low oil price also.

FWIW I think we will find that the lien is only over anything that is 100% FOGL - SFB plus probably Susan and Helen. Where there is a JV in place PMO and RKH will have a first offer of FOGL's share and I very much doubt either of them will accept NBL & EDN muscling in so that bit is likely dead in the water re NBL & EDN, even if FOGL went into Receivership. My own company is involved in two JVs and that's the way it works. Its Susan and Helen I'm bothered about as they are both Isobel look alike. As to SFB frankly I would welcome FOGL dropping that as even if there is proven oil there its likely to be minimum $60-70 re just breakeven compared to NFB at about $40.

Re clause 9.3 all the negotiations have been done with both Noble and Edison so that side is accounted for. Its the incoming claims that are still in limbo and are likely to remain so probably until Q2 of 2016 with doubtless counterclaims from the rig owners and their equipment suppliers. The bit I find somewhat disturbing is that FOGL seems to have given its two creditors a lien on all its acreage not just some of it. Normally it would be over bits of the acreage and would exclude any of the NFB JV acreage since under any JV FOGL would most definitely need the written approval from its partners to do that. I hope therefore that its simply badly worded as I can't see either PMO or RKH agreeing to that as neither would allow NBL & EDN to be foisted on them. JVs are extremely rigid and normally veto such moves as always a clause gives other partners first refusal.

This makes complete sense to me, my only question being - Are the present terms fair to both parties and shareholders won't really be able to judge that until Isobel 2 is finished plus we know the Zebedee numbers and FOGL's then cash situation. Also neither will either BoD which makes me wonder how the 0.2993 value was reached. It would help enormously if that bit was explained. If for example Isobel 2 is a disaster then FOGL clearly has the better deal but a success re Isobel then could mean that cash apart RKH has the better deal. As to the FOGL voting situation the PIs probably only speak for a total of 15% or so of shares so at best can only make a bit of noise. But they should make it to the FOGL BoD well before any vote on the deal to both FOGL and all its Advisors. Re any rights issue I assume FOGL did the rounds in the City to get a sounding, & probably got told 'Thanks but No thanks' thus leaving RKH as the only game in town. However should OPEC move soon re the oil price it could be a very different story and outcome. Meanwhile FOGL first needs to clear this with FIG and as RKH is a UK registration that should be a straightforward matter albeit let us hope FIG takes its time since Isobel result is about 4 weeks away.

Thanks, usually 7-14 days depending if there are any major BOP problems or not.

If the FOGL BoD has any sense they will call any EGM in Jan after Isobel. Plus they can't really do much until they have cleared this potential deal with FIG as FOGL is registered there not UK.

Don't think NBL will do anything other than tell FOGL how much they owe re the well cost. To do otherwise would cause them some embarrassment if they appear now to be very interested in SFB. As to NFB they have plenty of new toys in the ARG blocks plus PMO would cost them serious money to take out of NFB. That is quite apart from the likely US shale oil deal plus Cyprus and Israel gas costs.