Member Info for LayLadyLay

Deutsche have today raised their target price to 240p on the back of today's Buyback confirmation.

Cancelling 100% of the buyback shares then issuing new shares to cover awards and options granted to employees under the Company's employee share plans is less efficient/cost effective than covering them out of shares held in Treasury out of the Buyback programme.

I don't have the time or inclination to look at last year's accounts to estimate a precise number of awards in the next 12 months but I suggest we are talking a relatively small percentage of the shares bought back will be needed to cover this contingency.

I expect it won't be long before we see another consolidation as the current sp doesn't allow much/any headroom for future discounted placings which could be needed to keep the lights on.

"It is stated that the majority of the shares will be cancelled, that section of the RNS is less to my liking and is a little too vague ..."

The majority of the Ordinary Shares purchased under the Buyback will be cancelled. The remaining Ordinary Shares will be held in Treasury and then transferred to the Company's Employee Benefit Trust to satisfy obligations arising from awards and options granted to employees under the Company's employee share plans.

It makes sense to cover employee benefit awards out of shares held in Treasury and is a relatively small number of shares compared to the total shares bought back and cancelled. Not vague at all.

UK-based asset manager M&G Real Estate has acquired a portfolio of 30 residential properties in key Japanese cities from Blackstone for JPY 49.2 billion ($424.3 million).

The purchase comprises 1,575 apartments across Tokyo, Osaka and Nagoya and was made on behalf of the M&G Asia Property Fund, bringing the vehicle’s assets under management in Japan’s multifamily sector to JPY 109.3 billion ($942.6 million), M&G said Friday in a release.

“Japanese multifamily residential has proven itself through various economic shocks, highlighting the ability of the asset class to enhance risk-adjusted returns for core investors,” said Richard van den Berg, manager of M&G Asia Property Fund.

An M&G representative told Mingtiandi that the seller was a global alternative investment management company. A person familiar with the deal identified the vendor as Blackstone, with JLL advising the US private equity giant on the disposal.
Market Springs to Life

The portfolio’s flagship assets include the 2007-vintage Grace Residence Tokyo, a 12-storey building near Hatchobori railway station in the capital’s Chuo special ward, and the Luxe Shin-Osaka I & II complex developed by local builder Chinju and owned by Singapore’s Straits Trading from its completion in 2016 until late 2019.

Walking the Walk

M&G Real Estate entered Japan’s residential market as early as 2014. The firm’s previous deals in the country include the 2018 purchase of a portfolio of residential buildings in Chiba, Fukuoka and Osaka for $83.7 million, which marked the firm’s fifth acquisition in the country since the launch of its core Asia property strategy in 2006.

M&G paid $50 million for two Osaka residential buildings containing 280 units in a deal announced last May.

https://www.mingtiandi.com/real-estate/blackstone-sells-30-japanese-residential-assets-to-mg-real-estate-for-424m/

HC " It appears there exists a huge overhang of PMO/HBR shares that may flood the market on the cheap once a 'lockout' period lapses. My read is that this may happen in March/April 2022. Do you know if this is correct and do you have the details. "

EIG 36% ownership of the company is subject to a 12 month lockup which expires at close of play on 31st March 2022.

Former EIG investors 33% ownership was subject to a 6 month lockup which has expired.

Chrysaor legacy investors /other 8% ownership was subject to a 6 month lockup which has expired.

Former Premier shareholders 5% ownership was not subject to any lockup

Former Premier creditors 18% ownership was not subject to any lockup

Do people assume that EIG will flood the market when the final lockup expires? It will be a litmus test of how EIG see the future prospects/profitability of Harbour.

Challenger appears unlikely, though, to drill another exploratory well in The Bahamas by itself. It will proceed only if it can find a joint venture or ‘farm in’ partner to share some of the technical, financial or other risks, thereby enabling it to “monetise” its licences, or sell the rights to them outright.

Meanwhile, Challenger confirmed that it is due to pay the remaining $1.3m owed to creditors who provided services to support its Perseverance One well by March 17. “The company has entered into binding settlement agreements with relevant creditors, under which the approximately $11.3m of the liabilities are to be settled by way of a cash payment of approximately $2m,” it said.

“Approximately $0.6m was paid in November and December 2021, and the remaining balance is to be settled by payment of a further approximately $1.4m - approximately $0.1m payable by no later than January 31, 2022, and the balance of approximately $1.3m by no later than March 17, 2022.

“A payment of approximately $0.1m was made on January 31, 2022, and the proceeds from the conditional placing are expected to be utilised to make payment of the balance.” No mention was made of whether there are any Bahamian companies or creditors due to receive a portion of the remaining $1.3m.

And, in a nod to Mrs McKinney- Lambert’s concerns, Challenger added: “It is noted that, as a result of the ultimate cost of the Perseverance One well, a ‘top-up’ premium amount for well control insurance may be claimed by insurers in relation to the final overall cost of the insurance, although the amount of such claim (if any) is presently unknown.

“The matter remains subject to negotiation with the insurers given the outcome of the creditor settlement process, and further given that the well was completed safely and without incident more than 12 months ago.”

http://www.tribune242.com/news/2022/feb/14/oil-explorer-relegates-bahamas-non-core/?news

Challenger said these moves will make it “leaner and more cost-effective”, cutting operating expenses to $2m per annum. While hailing these developments as “good news for The Bahamas”, environmental activists and other opponents of oil exploration in Bahamian waters said they are not letting their guard down just yet.

Casuarina McKinney-Lambert, the Bahamas Reef Environment Educational Foundation (BREEF) head, told Tribune Business: “Now is definitely the time to move forward with a ban on drilling in The Bahamas.”

While Challenger’s position was “good news for the marine environment and for the people who depend on a healthy ocean for tourism and fisheries”, she added: “We are now a full year on from the completion of the failed exploratory oil drill and we still haven’t seen the drill report.

“Also, Challenger Energy Group recently stated cryptically that the insurers (Lloyd’s of London) may be seeking a top-up insurance premium that apparently has not been paid. This is cause for concern for The Bahamas and neighbouring countries.”

Nor has Challenger completely abandoned its hopes of discovering commercial oil quantities beneath Bahamian waters. It reiterated its previously stated ambition to renew the four remaining oil exploration licences via negotiations with the Government so that it can then monetise, or get a return, on these investments by finding a joint venture partner for a second exploratory well.

With the Perseverance One well’s findings suggesting commercial oil quantities could be present at even deeper levels below the Bahamian seabed, Challenger said: “The technical findings from Perseverance One well thus support a forward programme focused on deeper Jurassic horizons.

“As such, the company has initiated a farm-out process to seek a suitable partner for the next phase of activity in The Bahamas. In parallel, in March 2021, the company notified the then-Government of The Bahamas of its intent to renew the four southern licences into a third three-year exploration period.

“A new government was elected in The Bahamas in September 2021, and the company is engaging with the new administration on the renewal process.” No update was provided on the progress of negotiations with the Davis administration, which was previously thought more sympathetic to oil exploration in Bahamian waters than its predecessor.

However, Prime Minister Philip Davis QC, upon his return from the global COP26 climate change conference, suggested that while the Government might support oil exploration it would not approve commercial production or extraction. Instead, should there be a commercial discovery, The Bahamas would seek to monetise this via carbon credits or some other mechanism.

AN OIL explorer has downgraded The Bahamas to a “non-core” jurisdiction and closed its office in this nation after its first exploratory well failed to strike commercial quantities of ‘black gold’.

Challenger Energy Group, the former Bahamas Petroleum Company (BPC), said this nation will only play a fringe or peripheral role in its operations for the foreseeable future after it staved off potential insolvency via a £7.3m fund-raising that recapitalised the company.

In a statement issued to shareholders and the capital markets late last week, Challenger said its Bahamas interests - namely the four exploration licences it is seeking to renew in negotiations with the Government - will now be overseen by its Trinidad & Tobago operations.

Trinidad, rather than The Bahamas, has become Challenger’s operational hub and focus following a change in strategic direction that has seen the company pivot away from high risk, high reward exploration jurisdictions such as this nation to instead focus on existing productive oil fields that can drive immediate cash flow and potential shareholder returns.

“Existing higher-risk assets (the projects in The Bahamas, in Uruguay and in the south-west peninsula of Trinidad and Tobago) will be retained but considered non-core,” Challenger told investors. “That is, retention of these projects for the foreseeable future will be only on the basis of the relevant project requiring limited work and limited capital expenditure.

“No material work or capital expenditure is thus planned in respect of ‘legacy’ exploration assets in The Bahamas, Uruguay or the south-west peninsula of Trinidad and Tobago beyond routine work required to maintain the relevant licences in good order and progress discussions relating to farm-out and/or other monetisation options. The costs associated with such activities during 2022 are expected to be minimal.”

And, in a further sign that The Bahamas is now far less important to Challenger after its Perseverance One well failed to strike commercial oil reserves in waters 90 miles west of Andros, the company confirmed that it has closed its New Providence office and gave no clue as to whether it may eventually re-open.

“Various other non-essential staff positions have been eliminated,” Challenger said of its belt tightening. “The Company’s operating office in The Isle of Man has been shut and replaced with a corporate service provider.

“The company’s operating office in The Bahamas has been shut, and any residual Bahamian operations going forward will be serviced from Trinidad and Tobago. The company has established a small (serviced) London office to act as a central hub for coordinated operational activity.”

This was in response to a question from Opposition MP Rodney Charles who had asked the Finance Minister whether he was aware that the Government had repeatedly promised to get off the blacklist, but had not been able to do so since 2017.

The minister’s response was as follows: “I am well aware of that and just this week (week of January 14) I wrote to the European Union in furtherance of our objective to move to the grey list in 2022.”

Asked about this. Ambassador Cavendish said the Attorney General was “fully conversant with the latest developments” in this matter and that there were no existing grounds for confusion on either side. He said, in fact, there was goodwill on both sides. He said from the EU’s position the objective was to try to avoid what he termed “de-listings”.

Known in the Caribbean as “blacklisting”, this is the system under which some countries are penalised because of their failure to meet financial commitments in the trading and financial system with EU countries.

Trinidad and Tobago has been among other countries which have complained about what they deem punitive arrangements, with some leaders protesting that such action is often taken unilaterally.

The EU delegation leader then explained that in the EU system itself, countries which did not meet their commitments in this regard are taken to court.

He added that the EU managing director for the Americas Brian Glynn was due to pay a visit to the region in mid-February, but this timetable was being adjusted due to an imminent visit to Brussels by the US Secretary of State Anthony Blinken.

Glynn is due to visit Trinidad and Tobago, as well as Barbados and St Lucia, Cavendish said.

https://trinidadexpress.com/business/local/blacklisting-of-t-t-getting-highest-level-of-attention/article_9d9c5074-7fca-11ec-8134-2fc0ef9c26cc.html

Tribune Business reported in December that Challenger’s Perseverance One creditors had agreed to accept a near-84 percent haircut on the outstanding debt owed to them. The oil explorer said contractors, vendors and others that provided services to facilitate the drilling in waters 90 miles west of Andros had agreed to accept a $2m settlement on what is collectively owed to them.

“All remaining creditors from the drilling of the Perseverance One well in The Bahamas in early 2021 (approximately $11.3m) have agreed to be settled for total payment of approximately $2m in cash, of which approximately $0.6m has been paid to-date,” Challenger said.

It added that “the remaining balance of approximately $1.4m [is] payable by January 31, 2022, to reduce the total of remaining Perseverance One creditors to nil. Payment of this remaining balance is to be funded from new capital to the business, which is in the process of being sourced by the company.”

The creditors involved were not identified, and there was no mention as to whether Bahamian or local companies and service providers were among them.

It is also unclear why creditors on Challenger/BPC’s Bahamian exploratory well have agreed to effectively write-off some $9.3m, or 83.7 percent, of the debts owed to them. However, this settlement on the surface represents a significant victory for the oil exploration outfit in its battle for financial survival, as the Bahamas-related debts had accounted for over half is $22m liabilities.

Eytan Uliel, Challenger Energy’s chief executive, said yesterday of the latest capital-raising: “In December 2021, the company advised that it had undertaken a comprehensive balance sheet restructuring process, whereby approximately $23m of balance sheet payables, debts and potential liabilities would be reduced to approximately $2.5 million, principally by way of discounted settlement agreements.

“As noted at that time, the final step required to place the company back on a firm financial footing was a recapitalisation, which we will now embark on via the proposed fundraising. The new funds raised will enable final agreed creditor settlement payments to be made, significantly reducing the company’s financial liabilities.

“Even more importantly, however, the new funds will allow the company to pursue an identified, production accretive work programme in 2022 and 2023 across the company’s asset portfolio. We also believe that a stabilised business with a restructured balance sheet and increasing cash flows from production will be well placed to consider further production growth opportunities, whether organically generated or via acquisitions.”

http://www.tribune242.com/news/2022/jan/27/oil-explorer-plans-no-bahamas-work-22/?news

The former Bahamas Petroleum Company (BPC) yesterday said it will undertake “no material work” in this nation during 2022 other than maintaining its rights to renew four exploration licences.

Challenger Energy Group confirmed that its focus is firmly elsewhere as it unveiled plans to raise £6m from a combination of new and existing shareholders that will allow it to complete its financial restructuring and ensure the company remains solvent.

Revealing that it will concentrate largely on existing production assets in Trinidad & Tobago, Challenger said: “Following unsuccessful commercial outcomes with two higher-risk exploration/appraisal wells during 2021, one each in The Bahamas and Trinidad and Tobago, the company has sought to redefine its business strategy, operations and goals for 2022 and beyond, with a view to focusing only on lower-risk production activities, so as to generate and maximise cash flows.

“No material work or capital expenditure is planned in respect of ‘legacy’ exploration assets in The Bahamas, Uruguay or the south-west peninsula of Trinidad and Tobago, beyond routine work required to maintain the relevant licences in good order and progress discussions relating to farm-in and/or other monetisation options.”

It added that “the costs associated with such activities during 2022 are expected to be minimal”. The statement provides further indication that Challenger is unlikely to drill a further exploratory well in Bahamian waters, after its Perseverance One well failed to strike oil, unless it secures a joint venture partner to share the burden of the financial and technical risks.

In the meantime, it is merely seeking to preserve and secure its rights to renew the four exploration licences that expired last year so that it can eventually realise monetary value from them - either from a joint venture partner or selling the rights to them.

Meanwhile, Challenger revealed that it still owes creditors who provided services to its Perseverance One well some $1.4m. It said: “All remaining creditors from the drilling of the Perseverance One well in The Bahamas in early 2021 (approximately $11.3m) agreed to be settled for total payment of approximately $2m in cash.

“Approximately $0.6m has been paid to-date, with the remaining balance of approximately $1.4m payable during the 2022 first quarter to reduce the total of remaining Perseverance One creditors to nil.”

And James Smith, former minister of state for finance and Central Bank governor, will step down from his role as Challenger’s non-executive deputy chairman and leave the Board once the latest financing is completed.

Museo del Petróleo en Sargentes de la Lora (Burgos)

https://www.youtube.com/watch?v=1fIpNXNaeSg

Collective Dismissal Procedure completed on budget; CERP intends to participate in a re-tender for La Lora in Q2-Q3 2018.

The Collective Dismissal Procedure process relating to La Lora in Spain is now complete having been formally approved by the Trade Union; the total cost was €410,000, consistent with expectations. CERP now believes that ongoing running costs for the Ayoluengo field will be €15,000 per month, a significant reduction from the €60,000 per month throughout 2017. CERP intends to participate in the re-tender expected to begin in Q2-Q3 2018 and is open to bidding jointly with a partner.

Leo Koot, Executive Chairman of Columbus, commented: “We would like to thank the employee representatives and the Trade Union for undertaking the CDP in a professional manner and for the swift conclusion of the negotiations. We look forward to the formal closure of the Concession and participating in the re-tender exercise. We would welcome expressions of interest from parties who would like to join us in the re-tender process.”

https://www.edisongroup.com/edison-sparks/columbus-energy-res-cerp-business-update-la-lora-concession-in-spain/

Columbus decides to reduce operational costs at La Lora via reduced headcount until a new concession is awarded.

Columbus expects the formal closure of the La Lora concession shortly and intends to participate in the tender process for a new concession, expected in Q2-Q3 2018. As the tender process will take an uncertain amount of time to complete, Columbus will reduce headcount to a minimal care and maintenance level until a new concession is awarded. The cost of the proposed collective dismissal procedure is included in the 2018 budget, will be fully met from currently available funds and will reduce operational costs by $60,000 per month.

Leo Koot, Executive Chairman of Columbus, commented: “We have taken a very difficult decision, affecting our remaining employees in Spain. The decision to commence the Collective Dismissal Procedure was taken because the Company has incurred significant costs in Spain due to the Government’s decision not to renew the La Lora Concession, exacerbated by the lengthy period between that decision and the (yet to be completed) closure of the Concession. Given the time we expect it will take to complete the tendering process for a new concession, it is unsustainable for the Company to continue to incur the current costs of suspended operations. “We would like to thank the ongoing support we have received from the community local to the Ayoluengo Field, including the trade unions and local politicians. Despite the latest developments we are committed to re-applying for the new concession and obtaining value from our investment and today’s news is not impacting our overall strategy and delivery of our Trinidadian assets which are the main cash generator and opportunity for growth of the business.”

https://www.edisongroup.com/edison-sparks/columbus-energy-resources-cerp-business-update-la-lora-concession-in-spain/

RNS Number : 4516P
Columbus Energy Resources PLC
10 October 2019


10 October 2019

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Update on Spain

Columbus, the oil and gas producer and explorer with operations in Trinidad and Suriname, provides the following update about the La Lora Concession in Spain.

The Company has formally lodged a claim with the Spanish Government to recover €919,192.96 in costs caused by the Spanish Government's decision not to re-tender the La Lora Concession.

Leo Koot, Executive Chairman of Columbus, commented:

"The Company was disappointed in November 2018 when the Spanish Government decided not to re-tender the La Lora Concession, especially as we had been led to believe that a new tender would be forthcoming before the end of 2018. The Company believes it unnecessarily incurred otherwise avoidable costs during the re-tender process (from February 2017 until October 2018) before the re-tender process was abandoned by the Government. We have made a claim to recoup those costs. The Company does not expect to incur any material costs in pursing the claim."

Background

As announced by the Company on 5 November 2018, the Company received notification from the Spanish Government in November 2018 that it should commence the decommissioning of the Ayoluengo field.

The Company was expecting the Spanish Government to re-tender the La Lora Concession and indeed has been waiting for the re-tender process to commence since January 2017.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

COLUMBUS ENERGY RESOURCES LIMITED

Company number 05901339

Registered office address
Suite 121 60 St. Martin's Lane, London, England, WC2N 4JS

Company status
Active

Company type
Private limited Company

Accounts overdue

Next accounts made up to 31 December 2020
due by 30 September 2021

Last accounts made up to 31 December 2019

Nature of business (SIC)

06100 - Extraction of crude petroleum
06200 - Extraction of natural gas
70100 - Activities of head offices

Previous company names
Name Period
COLUMBUS ENERGY RESOURCES PLC 14 Jun 2017 - 10 Dec 2020
LGO ENERGY PLC 04 Nov 2014 - 14 Jun 2017
LENI GAS & OIL PLC 09 Aug 2006 - 04 Nov 2014

21 Oct 2021 Termination of appointment of Simon Craig Potter as a director on 21 October 2021
21 Oct 2021 Termination of appointment of Benjamin Joseph Proffitt as a director on 21 October 2021
20 Oct 2021 Appointment of Mr Eytan Michael Uliel as a director on 20 October 2021

"BY MANY HANDS. Oil sprouted for the first time in La Lora in 1964. The exploitation permit was granted to the companies Compañía Arrendataria del Monopolio de Petróleos, S.A. (Campsa), California Oil Company of Spain (Calspain) and Texaco (Spain) Inc. (Texspain). Since then, Compañía Petrolífera de Sedano has passed through the hands of the companies Amospain (a subsidiary of Standard Oil and Texaco), Chevron, Repsol, Northern Petroleum, Ascent Resources and Leni Gas & Oil. The latter tried on at least two occasions to get rid of CPS or to reach agreements with other firms for joint exploitation but was unsuccessful. It is currently called Columbus Energy Resources. "

"A posteriori, the Junta de Castilla y León initiated the declaration file as Asset of Cultural Interest in the category of ethnological complex for this industrial site, unique in Spain, so that the elements that have not been disassembled will have protection and any intervention in These installations must be carried out with the approval of the Heritage Commission. However, since they were caught turning the horses into scrap metal in September, this entire compound has been unguarded and exposed to theft and vandalism. "

It will only cost you £2 to view the charge register to see who has a hold over the assets of the company.

https://services.gov.im/ded/services/companiesregistry/companysearch.iom?searchby=0&searchtext=challenger+energy&search=Search