Member Info for fecm

Thanks Mogger.
"Premier is preparing to submit an application for project funding once FEED has been completed, scheduled for the second quarter of 2019."

As FEED is complete and we are in Q2 then submission of the application must be 'imminent'.

from Malcy "A business as usual statement from RKH this morning on the financial front, good cash flow which covers G&A costs and $40.4m of cash and no debt.

The best news comes from progress being made on the Sea Lion Phase 1 development where FEED has been completed, the contractor LOI’s progress to full agreements is well advanced and the FDP and EIA’s are at a final stage with the FI Government. With the finance structure also progressing there is further good news, the vendor financing has been agreed to the tune of $400m worth of funding for the project. Of most interest must be the PIM submission, this is the Project Information Memorandum and is the formal document for the debt application which is expected to be submitted in Q2 2019 and is a key milestone.

Elsewhere all is as expected, arbitration continues, the Greater Mediterranean continues to deliver successfully. All now depends on the last remaining milestone as described by CEO Sam Moody and then Sea Lion can move to the development stage when ever patient shareholders can reap their reward."

I don't think there is anything that can be done Carrot. We are in the hands of PMO now and the Italian arbitrators. Its basically a gamble as to whether PMO will squeeze us out or Sea Lion gets sanctioned before we become short of funds. If we make it, it will be by the skin of our teeth.

Biggest bet I've ever taken, thats for sure!!

I think last years sp drop was down to a build up in anticipation of a FID announcement which never happened. Oil price at the moment doesn't really come into it. From todays RNS: -

"With no cash flow generation expected from Sea Lion until 2022 at the earliest, the impact of the Brent forward curve during the period 2018 to 2020 on the fair value calculation is limited. As such, no impairment arises on the Sea Lion project. A range of sensitivities have been considered as part of the impairment testing process. Even in the event of a US$20 per barrel reduction in the Group's long-term oil price assumption, no impairment on Sea Lion arises. Equally, no impairment would arise even if the Group assumed project sanction was delayed by seven years."

I think that has always been the case. On the subject of dilution, I read the following paragraph to read potential dilution in the future.

"Under the base case forecast and the downside scenarios run, the Group will have sufficient financial headroom to meet forecast cash requirements for the 12 months from the date of approval of the 2018 financial statements. However, beyond the 12 month going concern assessment depending on the timing of sanction for the Sea Lion development, in the absence of any mitigating actions, the Group may have insufficient funds to meet its forecast cash requirements.Potential mitigating actions could include non-core asset disposals, collection of arbitration award proceeds, deferral of expenditure or raising additional equity."

Running low on funds still remains a concern. Its going to be tight getting FID and Sanction through in the next 12 months so mitigationg options will have to be looked at. Selling assets or issuing more shares will dilute us. The outcome of OM becomes even more important as highlighted on this board already. Fingers crossed.

From RNS 7th Mar

Premier has also continued to progress discussions with senior debt providers, including export credit finance agencies, around the funding structure of the project. In particular, Premier is preparing to submit an application for project funding once FEED has been completed, scheduled for the second quarter of 2019. In addition, it remains the Group's preference to optimise its level of participation in the project by bringing in an additional equity partner once the funding structure has been finalised.

PMO have clearly been in discussions for a long time regarding export finance. If the feedback they were receiving was not positive, why would they bother with the above? Time will tell. It's April tomorrow. Into the second quarter already. News will soon start to flow, commencing with the long awaited completion of FEED.

Carrot, thanks for explaining your thoughts and reasoning. That truly would be a perfect storm if all of your points came into play and could indeed plunge the sp to an all time low. However, it is more than likely that they won't all occur or if they did, it wouldn't be in a timescale that you could take advantage on. Agree with your reasoning for why the sp will rise.

Almost exactly 10 years ago the share price was 12.25p which I think is pretty much the lowest its ever been. To suggest it will go lower than that is stretching it a bit. What are you basing this on?

Excellent find Mogger and thanks for sharing. Wonder why the new maritime legislation was brought forward? Certainly bodes well and reassuring to know that Sea Lion is on the UK Gov radar.

Nice find Mogger, thanks.

PMO been ticking up nicely recently. Can only be good for us in the long run.

"Fib, where there is s lot of money envolved I always have an open mind! Regarding your essays, I could copy and paste and make out I’m a legal expert to all day long,, funny you have just started, where was you in Nov/ Dec when we were debating OM? "

Nigoil, sorry but that's a bit rude. The recent OM discussion thread is extremely valid. Did you read it? As discussed, RKH is starting to get a little short of cash. The further PMO kicks this down the road the more cash will be burnt. The OM award (if anything) may end up being the only thing left to keep RKH afloat in the event of further delays.

I for one appreciate when people take the time to explain in detail how these complicated legal matters might apply to the RKH case. Something you are not going to get in an RNS.

To suggest that the posters information was cut and pasted tells me that you didn't really take the time to read and understand it. If you are planning to try it yourself and make out to be a legal expert, may I suggest you check your post for spelling and grammar first ;)

I admire your enthusiasm for this share and appreciate the research you do. I hope for all of us that SL gets the green light this year. Please however, don't over read what is said in an RNS, they often seem to be written as positively as can be legally allowed.

Some great balanced posts today, nice to see. No doubt we have lots more news to come. Hopefully the announcement that FEED is complete will start a run of good news. The fact that the share price has held indicates at the moment that the market is also waiting on this news.

Its going to be tight for a 2019 FID on the basis of this. To my mind now, there was no intention of an FID last year. FEED isn't even complete yet.

To be fair Nigoil, we've all been strung on a bit last year re FID dates. How could they claim FID by end of 2018 if it was dependent on Feed completion and formal application for funding?

FID & Sanction has always been touted with a timescale - Year End 2018, End Feb 19 etc. It has now been dropped off the official communications, why?

Thanks. I'm usually quite upbeat regarding RKH especially as I have a lot (to me) invested. I have however waited this long so a little longer won't make a great difference to me.

The positive I took from it was that if 'infill / development drilling' was planned for next year, FID would have to be in place long before it started.

Hopefully we will get a bit more info from PMOs update tomorrow.

GLA.

To a successful debate. Its important we keep a balance of positive and negative information. I thought this was rather negative for RKH: -

Last month, Premier issued a statement acknowledging (somewhat) that it may, or may not, acquire more North Sea assets – following similar reports that it was vying for the Chevron assets – as a report in The Times suggested a “giant cash call” was being considered to fund a deal, which was said to have a gross cost of around US$1.5bn.

So, between the demand of new ambitions, debt repayment obligations and rival projects within Premier’s own portfolio, one might wonder whether the Falklands project could remain on the back-burner for a while longer yet.

Development of the Sea Lion field has for some time been at the point of treading water, with a partner sought to join Premier and Rockhopper to finance the project.

A January investor presentation indicated ‘infill or development drilling’ at Sea Lion across late 2020 and into 2021, albeit those will remain loose plans until new partner-sourced financing is in place and a final investment decision is made.

https://www.proactiveinvestors.co.uk/companies/market_reports/215919/insurers-aviva-and-admiral-in-thursdays-results-spotlight-215919.html

Thanks. Fingers crossed for good news.