RE: The cost of another waiver18 Sep 2023 11:13
It will be interesting to see where the costs have come in and money spent, in theory money was there to pay the bond as required but due to legal obligations monies needed to stay in the bank, which I understand. But they have been producing at a steady rate for the past month and all of September. So will we have the finances to pay the waiver?? If not where is the money? I know we cancelled the rig so maybe that was a big chunk paid last month hence the current bank sheet? Also is part of below starting to happen and is money being used for this with the bond holders agreement ??? I’m sure there is a lot going off here that we aren’t aware of. I really can’t see iog going under. Talk on here feels like people are saying 100% they won’t have the money at the end of September?? I think it’s going to be tight, squeaky bum…….
As a new management team, we have been reassessing the most efficient strategy to create value for our stakeholders based on operating data since First Gas in 2022 and updated technical evaluation of the risks and rewards across the portfolio. In addition to the established Saturn Banks production infrastructure position, the portfolio comprises high permeability conventional reservoirs as well as tighter gas reservoirs which require stimulation. Whilst the latter have clear potential, the conventional fields can deliver more compelling returns on capital with lower development risk. Strategically, therefore, we plan to prioritise these opportunities, from the Western Cluster (Blythe and Elgood) to the Southern Cluster (Kelham, Abbeydale, Orrell) and the Central Cluster, where our latest technical work indicates conventional discovered gas development potential at Grafton and Tenby.
Our "Conventional Core" incremental investment case illustrates this potential for efficient capital deployment. This has a management estimated unrisked pre-tax IRR of over 90% at an average gas price of 75 p/therm (well below today's forward curve), which would be substantially derisked by a successful Kelham appraisal well. The broader portfolio has also extensive value to unlock beyond this, which could be further enhanced if we are successful in our nine 33rd Round block applications."
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