Member Info for Fernan10

Thanks for your answer itsyou
But I still don´t understand.

what is the estimated spud date to be implied from these announcements?

Regards

Fernan

Sorry guys...I don´t understand those estimates of an end of June spud date....

doesn´t the MARAD announcement mean that the first well was spudded yesterday ("On June 01, 2019, Tullow Guyana B. V will commence a drilling campaign within the Orinduik Block of the Guyana Maritime Zone")?

Waiting for your comments

Regards

Fernan

Now there are 2 set of documents provided by the company, with 2 different deadlines for the public to submit their enquiries:

EIA screening assessment: submissions allowed up to May 23th

Appropriate Assessment: submissiones allowed up to June 6th

Regards

Fernan

Update 9 May, 2019

On 8 May, 2019 the applicant, as requested by the Department, provided additional information to the Department so that an EIA screening assessment can be carried out. This additional information has been published on the Department's website on 9 May, 2019:

Barryroe Pre-Site Survey Fisheries Assessment
Barryroe EIA Screening Report
EXOLA Site Survey Letter
An additional consultation period is being provided. The public are invited to make submissions in relation to the additional information, which submissions can be sent to PADadmin@dccae.gov.ie.

Any submission received by close of business on 23 May, 2019 will be considered by the Minister.

Update 16 May, 2019

The applicant, as requested by the Department, provided additional information to the Department so that an Appropriate Assessment can be carried out. This additional information has been published on the Department's website 16 May, 2019:

EXOLA Barryroe AA NIS Update May 2019

EXOLA Barryroe Site Survey Letter

An additional consultation period is being provided. The public are invited to make submissions in relation to the additional information, which submissions can be sent to PADadmin@dccae.gov.ie.

Any submission received by close of business on 6 June, 2019 will be considered by the Minister.

https://www.dccae.gov.ie/en-ie/natural-resources/consultations/Pages/Application-for-consent-for-a-site-survey-at-Barryroe,-North-Celtic-Sea,-South-West-Coast,-Ireland-proposed-by-Exola-DAC-wh.aspx

Interesting reading. Morgan Stanley has an optimistic view on current situation on Guyana politics and the investigation of offshore license awards.

Regards

________________________

https://oilnow.gy/featured/despite-political-uncertainty-in-guyana-oil-development-remains-intact-morgan-stanley/

Now there are 2 set of documents provided by the company, with 2 different deadlines for the public to submit their enquiries:

EIA screening assessment: submissions allowed up to May 23th

Appropriate Assessment: submissiones allowed up to June 6th

This is getting more and more complicated by the hour.

Regards

Fernan

Update 9 May, 2019

On 8 May, 2019 the applicant, as requested by the Department, provided additional information to the Department so that an EIA screening assessment can be carried out. This additional information has been published on the Department's website on 9 May, 2019:

Barryroe Pre-Site Survey Fisheries Assessment
Barryroe EIA Screening Report
EXOLA Site Survey Letter
An additional consultation period is being provided. The public are invited to make submissions in relation to the additional information, which submissions can be sent to PADadmin@dccae.gov.ie.

Any submission received by close of business on 23 May, 2019 will be considered by the Minister.

Update 16 May, 2019

The applicant, as requested by the Department, provided additional information to the Department so that an Appropriate Assessment can be carried out. This additional information has been published on the Department's website 16 May, 2019:

EXOLA Barryroe AA NIS Update May 2019
EXOLA Barryroe Site Survey Letter
An additional consultation period is being provided. The public are invited to make submissions in relation to the additional information, which submissions can be sent to PADadmin@dccae.gov.ie.

Any submission received by close of business on 6 June, 2019 will be considered by the Minister.

https://www.dccae.gov.ie/en-ie/natural-resources/consultations/Pages/Application-for-consent-for-a-site-survey-at-Barryroe,-North-Celtic-Sea,-South-West-Coast,-Ireland-proposed-by-Exola-DAC-wh.aspx

It seems that getting a permit to do a site survey is becoming a never ending process.

do we have to pass through the same kind of torture in order to get consents for drilling? or the current permits are both for the site survey and future drilling?

Regards

Fernan

Just a clarification to my previos post:

"An indirect consecuence of this proposed tax exemption is that ECO will not be liable to pay any income tax in case it sells its participation in the PSA."

Of course, I´m not sure of that, and this eventual income tax exemption in the event of ECO selling its participation in the PSA will depend on the fine print of the guyanese legislation

Regards

Fernan

I´m sure that the reason for these tax exemptions is that all these taxes are included in the Government take of profit oil, according to the applicable Production Sharing Agreement.
This government take varies between 50% (for the first 25.000 bopd) and 60% (for production above 80.000 bopd).
See:
https://www.stabroeknews.com/2018/news/guyana/03/18/guyana-for-higher-profit-share-from-increased-production-under-tullow-eco-oil-pact/

Exxon have a similar framework, by which is obligated to submit periodic income tax returns to the applicable fiscal authority, but its income tax obligation is paid out of the Government take
See
https://www.stabroeknews.com/2018/sunday/guyana-and-the-wider-world/03/11/the-guyana-2016-psa-fiscal-regime-why-the-whole-is-more-than-the-sum-of-its-parts/

An indirect consecuence of this proposed tax exemption is that ECO will not be liable to pay any income tax in case it sells its participation in the PSA.

Regards

Fernan

I agree with Grey Squirrel that the BOD doesnt have an answer to most of the questions for the AGM put by posters here.

But a simple question that management should be able to answer to is: what is the amount of cash balance projected at the end of 2019, not taking into account any positive outcome from the OM arbitration?

Regards

Fernan

Thanks Ovets

Regards

Fernan

Good evening.

Apologies for my ignorance, but what is exactly the difference between FID and project sanction?

Thanks in advance

Fernan

Source:

https://www.dccae.gov.ie/en-ie/natural-resources/consultations/Pages/Application-for-consent-for-a-site-survey-at-Barryroe,-North-Celtic-Sea,-South-West-Coast,-Ireland-proposed-by-Exola-DAC-wh.aspx

This consent process for the site survey is getting more and more complicated.

We will have to wait now up to 90 days after submitting the additional info required by the department

regards

Fernan

Update 18 April, 2019

Having regard to, inter alia, the requirements of the EIA Directives and the observations received further to consultations on the screening process, the Department considers that further information is required from the applicant so that an EIA screening assessment can be carried out.

Article 4(6) of EU Directive 2014/52/EU requires that a competent authority make a screening determination "as soon as possible and within a period of time not exceeding 90 days from the date on which the developer has submitted all the information required pursuant to paragraph 4".

The Department has requested that the applicant provide further information to enable a screening determination be made.

The additional information received will be published on the Department website and further submissions invited to be made on the additional material. Any submissions will be taken into account in any final EIA Screening Determination made in respect of this application.

https://www.dccae.gov.ie/en-ie/natural-resources/consultations/Pages/Application-for-consent-for-a-site-survey-at-Barryroe,-North-Celtic-Sea,-South-West-Coast,-Ireland-proposed-by-Exola-DAC-wh.aspx

Update 18 April, 2019

Having regard to, inter alia, the requirements of the EIA Directives and the observations received further to consultations on the screening process, the Department considers that further information is required from the applicant so that an EIA screening assessment can be carried out.

Article 4(6) of EU Directive 2014/52/EU requires that a competent authority make a screening determination "as soon as possible and within a period of time not exceeding 90 days from the date on which the developer has submitted all the information required pursuant to paragraph 4".

The Department has requested that the applicant provide further information to enable a screening determination be made.

The additional information received will be published on the Department website and further submissions invited to be made on the additional material. Any submissions will be taken into account in any final EIA Screening Determination made in respect of this application.

Here is what the auditor said about the risk of the Sea Lion license not being extended or converted into a production license in 2020, and the impact of such situation in the valuation of Exploration assets at the 2018 Annual report (page 52 of the report):
_________________
Uncertainty related to development prospects of the fields in the Falkland Islands area could have a significant impact on the recoverable amount of Group’s exploration and evaluation assets. Forecasting the recoverable amount of the group’s CGUs is a highly subjective area due to the inherent uncertainty involved in forecasting and discounting future cash flows, specifically around oil and gas prices, reserve estimates and future cost estimates. Moreover, certain licenses in this area expire in 2020. The conversion of these to production licenses is subject to the ability of the Company to secure financing for further development and successful negotiations with local government.

Assessing license extension prospects: We assessed whether it is likely that conversion will be granted for licenses in the Falkland Islands area. We inquired about the stages of negotiations with UK Export Finance and other creditors to determine expected timeline of securing financing necessary for development of the oilfields in the area and read available correspondence with these parties.
_______________________

After performing this analysis, the external auditor (KPMG) gave a favorable oppinion on the Balance Sheet

Regards

Fernan

Excellent Phoebus.

Thanks very much for your kind explanation.

I´m absolutely incapable of performing such analysis.

Regards

Fernan

Hi Phoebus.
Apologies for my ignorance, but how did you get the precise locations of Hammerhead 2 and 3 on the map?

Thanks in advance

Fernan