RE: oil watch (warning may offend :-()3 Apr 2019 11:15
This extract from 20th March RNS is all we need to focus on right now. The FO negotiations with preferred bidder have probably been going on for a few months now, and IMHO the longer it goes the better it is for us. I know that we should be thinking one project at a time, however the HRZ will start to crystallise very soon with it's own FO.
Please note that this is the FIRST time we have had SERIOUS interest in our projects. The prospective Farminee has pushed it's way to the front of a bidding queue for various reasons size,expertise, cash flow etc. Here is an article on why FO's occur:
https://egyptoil-gas.com/features/farm-ins-farm-outs-reasons-complexities-and-challenges/
Here are the relevant paragraphs from 20th march RNS
Project Icewine Conventional
A fast track farm-out process commenced in August 2018, whilst processing of newly acquired 3D seismic (March 2018) was still underway. Processing was finalised in October 2018, including inversion, marking the first time that potential farminees could assess comprehensively the mapped conventional resource potential on the Western Play Fairway at Project Icewine. Consequently, requests were made by potential farminees for more time to evaluate the opportunity, which the Company granted.
The farm-out process has now progressed to the next stage, with a preferred bidder selected and discussions underway. The Company advises that there is no guarantee that the parties will agree terms and close out the transaction. A further announcement will be made in due course on the outcome of the ongoing negotiations, which are currently confidential in nature.
A map of the exploration/transactional activity near Icewine can be viewed at the link below:
http://www.rns-pdf.londonstockexchange.com/rns/3105T_1-2019-3-19.pdf
The last 18 months have seen a significant increase in interest in the acreage to the west of Project Icewine and on the same latitude, marking a southerly trend in exploration focus. ConocoPhillips acquired 3D seismic in 2018, ~15 miles west of the Project Icewine Western Margin Leases. The Company is also aware of a multi-client 3D seismic acquisition planned immediately to the west of, and adjacent to, the Project Icewine acreage (see image).
Additional near term transactional activity is expected associated with the on sale of an option acquired by Oil Search in 2017. This option is due to expire in June 2019 and includes acreage immediately to the south of the Western Blocks (where Winx-1 was recently drilled) and immediately west of Project Icewine (where the multi-client 3D seismic acquisition is planned).
I posted an article yesterday regarding CP's desire to pull out of the North Sea and concentrate it's portfolio on the NS.
I hope that you find this useful, if not, then continue researching and digging.
On y va 88 Energy!
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