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https://www.offshoreenergytoday.com/iog-pushes-back-north-sea-project-fid-due-to-market-volatility/
Ensco 72 to drill Wick and Coulter for UOG prior to IOG, Wick due to start in Dec.
Makes complete sense to sort funding when things have settled down albeit frustrating. Sound like they are still banging on with work program. At least we know the gas is there. No point in selling now. As for a cheap offer coming in unless it comes from LOG it won't get very far.
GLA
Is there a chance FID is being delayed pending Brexit decision? Would this have an influence on currency the bond debt is denominated in? just a thought. No finance background so don't know if this may be relevant or not. Anyone got more idea if this may be a relevant issue. thanks
Morning Guys, Just seen this on Bloomberg, hedge fund manager losing entire fund of $150M trading options in oil and gas due to volatility of daily price moves. If ever I needed more conviction of managing my own investments. What amazes me is he sounds more sorry about losing his lifestyle and freebies from clients than of losing their money which equates to around $500,000 each, unbelievable.
bloomberg.com/news/videos/2018-11-21/wiped-out-hedge-fund-confessed-losses-video
Re Bacton There was a similar over run with the purchase of Thames Pipeline RNS 1/3/18 stated "Thames Pipeline acquisition SPA deadline is being extended to allow for completion during March 2018" however the purchase was not complete until 17th April 2018. I find it inconceivable that Perenco would now be seeking another buyer and assume that the period of exclusivity that ran out September 2018 is no longer relevant as discussions have now moved forward and IOG are not obliged to keep the market updated on the minutiae of the project.
Aligator, Looking at Companies House filing history it would seem the creation of the new subsidiary companies is the usual route IOG take regarding ring fencing assets. IOG Infastructure Ltd was originally IOG Skipper Ltd name changed 26/12/16. IOG North Sea Ltd was originally IOG Blythe Ltd name changed 21/05/12.
I find it interesting that the new ones were incorporated as Avalonia Abbeydale and Avalonia Goddard rather than starting IOG as those names would have been available but assume it is to ensure that they are delineated from the other assets so there is no confusion when it comes to funding different packages of the project. All IMHO
Spaz, I think you are onto something. Looks to me like these new companies may possibly be to coral these assets to aid their funding in future. The outstanding CLN,s that are secured against IOG assets are secured against those of IOG, IOG NS and IOG UK (re RNS 21/2/18) These two new companies are a subsidiary of Avalonia Energy Ltd. From the Companies House info the correspondence address is the same as IOG.
IOG are committed to drill Goddard within 3 years from licence award. If a subsequent appraisal drill proved up the resources then these would be available for resource based lending. It's possible as part of current funding that LOG may elect to extend the maturity date of the current secured CLN,s. In this scenario doing this would not impact their ability to access this type of funding at a later date, assuming that Avalonia Energy Ltd becomes, if it is not already, a subsidiary of IOG.
Spaz would not read anything into these companies being formed regarding progress of FDP / FID.
It's straightforward and inexpensive to set up a Ltd company (have done so myself when contracting) and they can remain dormant without being used for years if required.
They appear to be subsidiary companies, possibly set up for accounting purposes as they are at an earlier stage, and not included in the FDP or FID, and will presumably be funded separately.
Relinquishment report for Goddard (previously Glein) may help shed some light on this. Assume the pop up structures refer to North and East Glein?
https://itportal.ogauthority.co.uk/web_files/relinqs/nov2015/P1746.pdf
At around 4.29 AH said they could go on to discuss cost to first gas rather than overall cost but this was not picked up on later which was disappointing. It seemed AH would have elaborated.
Aligator sorry "the heads of terms comment" relates to the contractors not the funding partners.
Body language wise I took from it that Malcy my have had a heavy night drinking all that water!
GLA
GG much appreciate your reply (and patience). I,m back on track now Cheers.
ATB
GG OK thanks, was under impression there were 6 different terminals at Bacton site, perils of researching via Wiki!
Morning chaps, quick question.
My understanding is Thames pipeline comes ashore at the Eni terminal, mostly unused now, and that is where the reception facilities IOG will be buying are. The two other pipelines coming into that terminal are now connected to the Perenco site after compression, so presumably that is what the upgrading relates to. Have looked back on RNS,s and saw mention of some payments being payable to Perenco. Sorry if this was all discussed some time ago, Unable to follow BB for a period of time.
Thanks.
GG,
Fair comment as usual,. Thankfully this BB has been an asset with well thought out and informative posts by many contributors thanks to all concerned.
ATB to all IOG holders new and old.
600T sounds lie a good plan mate ATB. Not by design but as things have progressed I have ended up with just about all my eggs in this basket ;-)
GG lol nowhere near you mate but if this pans out happy days!
600T,
Re your comments about usual advice being not to put all eggs in one basket. Read an interesting article by a former fund manager who stated that he totally disagreed with that idea , however, it has become the usual advice and the norm with funds because they have to spread risk to ensure a positive return. He recommended thorough research, invest very heavily in a good prospect, ensure you monitor closely and be prepared to change position quickly if the situation alters. Much as yourself and many other regulars on here have done. Good luck to you!
The delays are a little frustrating however the complexity of negotiations at this stage must be huge. I can only assume there is good reason for the delay and early drilling of Harvey must be relevant in some way or other or else why waste the expense now. I fully expect LOG to convert some of their debt to enable funding as some is secured against assets but am no expert in this area. Don't believe they would want to decimate the share price to achieve it, and as has previously been stated this will be compensated for with the money raised. Bacton news expected any day now.
GLA
"How would anyone know who is selling or buying, they dont put names and addresses with trades" Excellent post that made me laugh!
Hands up, I bought two small last, last tranches yesterday. brought my average up a tad but who cares, now sitting on my hands.
ATB GLA
Cheers LS