Member Info for MTSparky

If HALO can prove up Greater Pegasus Area the resources available could be huge. But it will require a lot of cash to get to production, cash HALO do not have. There are companies out there like Rockrose Energy however with £250m in the bank and earnings of £m's per year that could buy HALO and develop the production facilities from cashflow. RRE for example offered £75m for IOG who is also developing gas assets in the north sea. I think the GPA has greater potential in terms of GIIP numbers than IOG's assets from a quick review. We just need a few more ducks to line up IMO, PW FiD being one of them.

Its all or nothing on this Andromeda drill then, by the looks of it. Lets hope its a gusher, proves the size of the prospect and HALO is made an offer..;o))

Well he knew that the last time this happened but still did the share buyback. Before the Marathon deal RRE should have been about £12-15/sh so to add just £2/sh after such a large transaction, It cant be that relaxing...lol

I can't see AA wanting to pay a dividend either until Cavendish et al are out and new investors are in.

The last time this happened AA took action with a share buyback. I can't see him tolerating this low valuation for much longer it must be driving him nuts.

HALO net average production 2,391boepd • Total Sales revenues £31.1m • Net Operating profit (before interest and taxes) £6.5m • Total Cashflow from operations £12.3m • Net Capex £4.9m • Year-end cash position £11.3m • Proven plus probable (“2P”) reserves 17.2mmboe*

Year-end cash position £11.3m - Less the £5m decom liability, less boat costs. Cashflow will be half due to TTF price crash. HALO must be sailing pretty close to the wind right now. Lets hope the CAPEX/OPEX on Tullow 101 have reduced considerably. In fact read below paragraph and it looks like HALO will need a cash injection.

"At the year end, the Group had cash balances of £11.34m (2017 - £3.77m). Existing commitments for the forthcoming period include the drilling of the Andromeda well and the decommissioning of the E18 field platform and wells. In addition, when the Pegasus FDP is approved for development and receives UK government approval, further capital expenditures will be incurred in 2019 and beyond.
Decommissioning security arrangements (DSA) are in the process of being introduced for the Group’s Dutch offshore licences. In the case of the JDA, sufficient future cash flow from existing fields means that there is currently no requirement to post securities. However, under current projections, there will be a requirement to post JDA securities at the end of 2019. Additionally, DSA security arrangements will be required to be put in place for F16 and K12 fields in Q2 2019. The Group expects to be able to place a surety bond to cover these and future security obligations.
Despite the continuing positive cash contribution from existing gas producing assets in the Netherlands, the Group will require additional short-term funding in 2019. The Group is in advanced negotiations with lender(s) to provide short-medium term financing to cover the anticipated shortfall in 2019.
With the anticipated additional financing, the Group expects to remain in a strong financial position for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing these financial statements"

I hope you are correct ghost, HALO cash levels can’t be that great.

Brexit and the plunging £ is helping with the lower TTF price, but what happens if Brexit is cancelled worries me. I wonder if HALO fixed/hedged some gas pricing.

I think drill ships are about $150k per day so £5m ish to HALO?

...bargains galore for RRE to snap up. Should be able to negotiate favourable terms (in this low oil price environment) with majors for their assets too...;o)))

Number of shares in issue
29,886,836
1 January 2019

We have been through this exact same share trade process back in October last year. II selling out, PI panicking, people coming on here saying doom was upon us and the stock would crash to £2 /sh etc etc. Why isn't the sp moving up? there must be something wrong!!

The sp didn't of course crash and as soon as the II selling was done the sp rose to about £8 then the de-list happened. The II need to get their business done which may take a while, trust the fundamentals and buy the dips is my strategy. Then just wait for the company updates to flow. Another asset purchase will pop out of the blue I am sure as RRE have to do something with all that cash. £25/sh by XMAS will do for me for starters..;o))

Cheers RB its good to be back in blighty. Much prefer mud to sand...;o)

"The GPS partnership views the unrisked GIIP range to be 400 BScf to 2 TScf."......that's about £775m - £3.9b NET to HALO isn't it?.....mouth watering..;o))

Just landed in UK and catching up. Jet lagged but i'll have a go at some fat finger number crunching to entertain you...;o))

In cash earnings terms 3mmboe NET to HALO is roughly about say £75m isn't it? If HALO can get Andromeda N into production say 2021 along with PW that's about £150m of earnings, the bulk of which would be over say 3 years 2022 - 2024. The FiD is key isn't it, how much is this going to cost to get into production?? Also decom costs to consider. Are Centrica trying to offload Spirit Energy? if so this could complicate matters.

HALO could be sitting on at least 20mmboe 2P reserves @ say $8 each. say worth £130m. I hope someone makes an offer for HALO...fingers crossed...;o))

Thanks Jimmy. If you could add some proper value to the board, i'll keep quiet !..lol

Maybe 60,000 boepd is do able in time, with a few purchases.

Well that deflates the excitement a bit. I should read things before cut and pasting...lol

RRE could buy Shearwater and still have over £100m free cash by year end. Gulp !!

90,000 BOEPD....mind blowing.

BP is seeking other buyers for its stake in the Shearwater field after talks with Shell fell through, according to a news report.
Citing banking sources, Reuters reports BP could not reach an agreement with Shell over the value of the 27.5% stake.
Neither party commented on the deal.
It was first reported in January that the energy firm was seeking to sell its stake in the assets as it focuses on new North Sea projects as well as US shale.
Reuters later reported in April that BP was in talks with Shell and the deal was thought to be worth around $250m (£193m).
At peak production, the gas export capacity of the Shearwater hub is expected to be around 400 million standard cubic feet per day, or roughly 70,000 barrels of oil equivalent per day, according to Shell.

Looks like a bounce off £17.50p (Note to self: must stop watching the SP)

Personally I can't trade to save my life, always get if wrong. Buy in early hold and wait for fair value is my strategy. We aren't there yet.

Who knows how low the SP will go!?!?!?

Cavendish Asset Management 1,816,800 13.9%
Macquarie 747,588 5.7%

If (big if) these are selling they wont want the SP to crash, it could take a number of days/weeks. The SP may just tread water for a while.