The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
We are looking at 7 years minimum before first oil? How many placings are RKH going to have to do before now and then.......Yeah a lot. A huge amount of shares and dilution is going to have happen
RKH are in a really bad position because they don't have any form of cash generation for the next 7 years.
Lol, everyone going to sell out on news
RKH and Navitas haven't even got a plans yet in place yet for what type of development they want to go with, If they want
1-2 Years minimum before RKH and Navitas even start physically developing SL
3-5 Years for SL development to be completed and first oil
3-5 years for RKH to pay off the huge loan
so we are looking at a minimum of 7 years ....all the way up to 12 years before RKH can look somewhat of a company to invest it.
Who has the patience to wait another 12 years (2034)
RKH will need to use 85% of there fcf to pay back the loan
RKH will make roughly around 1 million and day with $100 oil with there 35% share , not counting shutdowns etc
How big will the loan be 900 million? so look at least 3 years minimum to pay off huge loan
Let’s say a big recession happens and oil price goes back to $50-$70 range……it would take RKH 7 years to pay back the loan
They are left with roughly 20 million a year cash flow a year if $100 oil or $10 million a year with $50-$70, just enough to pay salaries and keep lights on but not enough to properly expand enough
Saw on previous post RKH likely to be awarded 250mill cash , what planet are you living on? RKH hadn’t even produced first oil there
There’s like a 1%/0 % chance the Italian government will pay for ‘estimated ‘ lost revenue. What’s more like is Italian government will pay all of RKH costs for making etc + a few million sweetener
If RKH get even 20 million out of the Russian government they should be happy
Let’s say a council here in UK give me a permit to set up a good stall on a street , I pay for all electrical work, the stall , signage etc. Then the council takes away the permit ,……what’s fair is the council pay back any incurred cost + sweetener to apologies. No way are they going to pay X amount of years in lost revenue
You guys are just crazy thinking the award will be 200million plus LOL
it could take 3 years to pay off the loan..........which would mean it would take 5-7 years at least before RKH start making some serious $$. Who has the patience to wait 5-7 years?
RKH will retain a 35% of SL
For cash, short Rockhopper Navitas will provide a loan, with a first instalment pre-FID and later will extend additional financial support to help cover two-thirds of the company's share of development costs. The pre-FID interest will be 8%, and with a positive FID, the loan will be interest-free, and funds repaid from 85% of Rockhopper's working interest share of free cash flow.
RKH will have pay 85% of Free cash flow to pay back the loan (Could take years to pay back)
If RKH and NAvitas choose a low cost option we'd be looking at 40-60k barrels a day from Falkland in the 1st phase....That means roughly RKH would (17,500 barrels x $60 , $40 operating costs - assuming $100 bbl oil and no less) so RKH get $1 million a day or $365 million years, discounting any potential problems......
but RKH lose 85% of that freecashflow?
So Rkh are left with about ($356,000,000/100 * 15) = Around $50 million per year profit..........What the hell can RKH do with $50 million per year, can't grow or anything just pay for sam moodys salary, please tell me my calculator are way off the mark here.
THis is all assuming $100 bbl oil, if its $70 bbl oil, RKH will get like $25 million a year profit, not even enough to keep the lights on
It was like 6 months ago OM award was meant to be announced, Sealion investment decision always get puts forward a few months. As long as that salary is going into Sam Moodys bank account , everything is goood.
More like the other way round, Sauerkraut don’t believe what MSM are telling you, Europe is running scared and will have to bow down to aRussis demand, western leaders going to get their tails stuck between there legs