RE: RNS18 Apr 2019 11:52
Here is the answer to my question:
The QR has given us dates where there were NONE before.
* The Conventional farm-out campaign continued in the quarter, with the deadline for bids extended to END JANUARY due to demand from multiple parties
* After consideration, a preferred bidder was selected by the Company in MARCH 2019;
* the Conventional portfolio farm-out deal is targeted in QUARTER2 2019
This means that the bidding process would have started after 3D Inversion in October 2018. Interested "high quality" parties would have considered all of the data, and the deadline for bids was 31st January. 88E considered all of the bids during February, and chose their preferred partner last Month. So we are looking at an AGREED offer, which needs to be translated into a binding contract. This is targeted for completion by end of June 2019. I am sure that both Farmor and Farmee want to get this over the line, so that plans can be put in place for 2020. We are not privy to the Farmee's drilling plans. Remember the scale of the asset - 2.2B barrels!!!
The additional news relating to the HRZ, is the opening of a Data Room in the middle of 2019, similar to that of the Conventional. Given the experience, it is likely that the process will be hurried along to secure another FO by YE 2019. All IMHO of course.
The important change is that we now know when the FO offer was accepted, and the date for conclusion.
Apart from any last minute "cold feet", there is a very strong probability of this happening. This will place a strong intrinsic value on the company, which will then be enhanced by the HRZ FO.
I am not moving a muscle, as the preferred bidder had three months to consider the evidence, and formulate an offer. 88E then took 1-2 months picking the right partner and then another three months to iron out any anomalies, draft the contracts and complete. A total of eight months, which is very similar to OSH/Armstrong negotiations.
All good in my book, but make your own minds up!
Sayonara.
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