A few thoughts after AGM16 May 2019 16:58
I attended the AGM yesterday and I won't go too much into things as most things have been factually covered. So please take the following as my own personal thoughts and what I got from the AGM in no particular order.
1. I didn't feel it was upbeat or downbeat I felt it was honest, they expressed concern, disappointment and hope.
2. Hindsight is a wonderful thing was said, but at the time it was the right thing to do, with a crystal ball, yes there would have been caveats but at the time it was the best thing for the company nobody knew what was coming, RKH and Premier survived, many did not.
3. I think as we know Premier need to apply to UKEF, the timing is the best it's been; they have contracts and letters of intent in place; oil price has held well; a huge amount of backstage work has been done so all the boxes can be ticked. All contractors involved are working through their UK companies so it ticks further boxes. Premier are also in a pretty good state compared to recent years so this stands well with an application too. Apparently although they cannot discuss lots of things with UKEF they can get guidance to assist them. HOWEVER UKEF do not like media pressure or Ministerial pressure, Sam said lobbying of any sort is looked on very badly so I wouldn't recommend writing to your local MP to take up the baton.
4. Any money received from Italy would be in the war chest, no possibility of a divi, they are tied to paying FIG tax upon first oil so hands are tied there. Someone suggested paying the tax which would release them from this, but it was said, why would you pay tax when you don't have to. Also should things be delayed again, and a different development plan looked at, we possibly still wouldn't need to pay the tax until first oil.
5. With regards possible no funding from UKEF, then Sam mentioned you would have to look at a smaller scale development, but this becomes much less profitable. With regards preparation for such a scenario, it hadn't been looked at; concerns of the mixed messages if you say to a contractor "We are looking at a 1.6b project with X amount of involvement for you; but can you give a cost in case we plan for just 5 wells a few buckets and a dingy!". Sam said the mixed messages would be bad, which makes a lot of sense.
6. During the AGM it was said Premier want a partner but will wait till UKEF funding decision. With UK Gov backing a partner will be more forthcoming. In mingle and chitchat after the AGM, there was talk of Premier and a partner and how it makes total sense for everyone and would bring new blood, one new partner would be just right.
TBC......................
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