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What I want to know is what will happen once the debt is paid off? They paid $108m worth of debt in the first 6 months of the year. Or £83m. The special dividend cost £29.45m. So when the debt is paid off, they could quiet easily double their dividend payments. The reason I think it's a possibility is because of the biggest shareholder and majority shareholder of FXPO. Anybody have any thoughts on what they might do?
Where are you getting $70m? I can only find $152m unrestricted cash at 1st of April.
I think the valuation is a bit crazy. If hurricane have access to a rig (pretty sure they do). I think they should go for the well intervention:
"Another consideration is the potential to re-enter the 205/21a-7Z well and isolate the heel, with the objective of accessing a more productive zone and reducing the interference impact with the 205/21a-6 well. Successful isolation would have the benefit of increasing productivity without requiring the drilling of a new well or of making a significant investment in new subsea infrastructure that a new well would require. "
786K share buy at the end of play. Or it could be a sell and that's why its down today. Either way it looks like the placing shares are almost done.
This morning there was an auction first thing. If it does the same tomorrow with positive price movement I would say it's a buy for sure.
Does anyone know when the next news is expected?
The biggest deals aren't necessarily the best deals. Half the problem with high growth companies is they take on too much too quickly. A slump comes along and they are in trouble.
If you look at the interview before the most recent one with Malcy, he talks about the deal he's most proud of. Buying Arran for $1 from Dana. I think the Cotton field will probably have a similar setup, but with milestones to pay the previous company who had it imo.
I think that Dana's or Premiers share of Tolmount or Platypus could be a good deal. The thing that makes me doubt Spirit is the sheer size of it. In this climate I'm not sure it's possible. Of course I would like to see it happen. But I think smaller deals are probably more likely given the oil price and access to debt.
The announcement extending BP's use of the Petrojarl production vessel appears to reinforce the company's presence in the West of Shetland area, where it recently overhauled the two largest producing fields, Clair and Schiehallion.
In production since 1997, Foinaven was the first of the deepwater West of Shetland fields to come on stream, with production peaking at 113,000 b/d in 2002, before falling back to 20,000 b/d.
However, Foinaven was shut down for a longer-than-expected period of maintenance last year, and BP was considering replacing the Petrojarl floating production, storage and offloading vessel with a new, possibly more energy-efficient facility, as it considered the field's future.
The West of Shetland region is viewed as the main hope for prolonging UK oil production, but also a high-cost location with major technical challenges, and BP was looking to cut costs there even before the oil price crash induced by COVID-19. It has been looking at the possibility of no longer loading Clair crude at the Shetland Islands' Sullom Voe terminal, instead sending it straight to market from the field.
Under Friday's agreement BP has signed a 'bareboat' charter with Teekay Corp, provider of the Petrojarl FPSO, extending its use for another decade. The agreement entails an upfront payment of $67 million followed by a "nominal" day rate and a lump sum at the end for recycling the vessel.
It has also signed contracts with Altera Infrastructure for operation of the Petrojarl FPSO and provision of the shuttle tanker service to ship the crude to market.
The deal represents "an innovative contractual framework for the FPSO's operating services and shuttle tanker provision, giving BP greater influence over the strategic direction of operations," BP regional president Ariel Flores said. "It will also help ensure safe, reliable and efficient operations out to at least 2025 and give us space to set the Foinaven area up for future success.”
Foinaven crude, like other West of Shetland crudes, is heavier than that from the conventional North Sea, with an API gravity of 26.4.
Foinaven prospectivity
Speaking to S&P Global Platts last September, Flores had noted the field's propensity for lengthy shutdowns, but also its continued prospectivity, saying "the reserves are absolutely there".
That view was echoed Friday by Andrew Austin, CEO of RockRose Energy, BP's partner at the field with a 28% stake obtained when it bought US company Marathon's Oil's UK assets last year.
"Foinaven is a functioning, producing area. It is not the cheapest barrel we produce in our portfolio, but it is probably more understood and there are probably more barrels under the sea there ready to be recovered than there are in a lot of our other areas," Austin told Platts.
"We see the whole Foinaven area as a very interesting place to operate in and we do have a functioning hydrocarbon and export system at the moment in the shape of the vessel that is
The hedging rre has was always intended to cover their capital commitments. Also has hasn't fallen as much as oil, so have the business is making money, the other half is just paying for itself.
AA has said he wants more gas assets. Lots of distressed companies out there to buy. Another acquisition in the next few months I think. I don't think the low oil price will last for more than 6 months. No one is winning at this price. It will bankrupt lots of companies, and hit the pockets of those governments that rely on the oil price to meet their budgets.
Some might not think it. But there will be loads of cheap assets going soon. Companies with lots of debt will struggle. The big risk is it goes on for years. But I sincerely doubt it. Shale can't withstand that, neither can the Saudis.
All eyes are on the assets that are currently being decommissioned. If they start leaving in places a lot of the infrastructure, the decommissioning bill will get dramatically smaller. Look at shell with the Brent's.
Great interview, I still think Tolmount is an option. Owned by Premier and Dana, one of the biggest gas fields to come online recently. Dana are keen to sell, and even sold Premier an additional 25% recently. But will the transaction go through? I'm not sure. Gas is also looking more attractive as it isn't losing value like oil is right now. The next few months will be interesting! :)
Need a waiver and to spend $30m on a buy back. The company could always put them back into the market in 6 months time. Just an idea but it makes sense to me
Fear in the low oil price is the perfect time for deals imo. Even Premier, will they still go ahead with the deals they have recently struck? A few companies are backing out of deals due to gas and oil price.