Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
That’s why I think the company ought to explain the plan. I think the first step is to register the award in the appropriate jurisdiction(s), and I can’t imagine the legal fees to do that are particularly high.
I would have thought clauses 2 & 3 are pretty standard.
I think it’s important for Rockhopper to explain what it intends to do now following this ruling. I suspect they would, at the very least, want to get the ball rolling considering it takes time. It’s unlikely they will get the money before next year anyway so the escrow account is probably going to end up being irrelevant. This decision simply means that they can now go after assets without delay.
1: That the provisional stay of enforcement shall terminate 5 business days following the provision by Rockhopper to Italy of documentation that escrow arrangements in the form proposed have been established, provided that Italy does not within those 5 business days submit a reasoned written objection in these annulment proceedings that the escrow arrangements established are not in accordance with the proposed arrangements.
2: Reserves its right to revisit its decision at any time; and
3: Reserves its decision on costs
Https://www.linkedin.com/posts/jo-brown-03923b34_my-client-that-is-a-leader-within-the-oil-activity-7083060039699030016-n3rM?
I wonder what might be starting in August, requiring remedial electrical works.
Https://ats-fig.jgp.co.uk/vacancies/248023-offshore-environmental-adviser?
I suspect the larger holders will wait for definitive news on Sea Lion before exercising. I realise the deadline is prior to the likely FID date but news on an FPSO LOI and possibly funding would enable them to exercise warrants with more confidence that they could all eventually be sold at a profit. Such news would also likely have a large impact on volume which would enable them to sell their current holdings down and exercise the warrants to replace the sold shares if that’s the way they want to play it.
I suspect if all of the warrants were exercised today with the intention of selling straight away at a profit then there simply wouldn’t be the buyers to sustain it, and we’d be back down at 10p in no time.
It’s the old Cambozola license.
Many thanks Yeast - I shall make sure I’m there next year because I love stroopwafels.
Appreciate all the info and thanks for sharing. I found this very encouraging:
“Navitas wants to get to FID on their own balance sheet and after FID, farm out to a third party”.
FID on their own balance sheet would be very positive and the project goes ahead regardless - the farm down process is then done from a position of strength and they aren’t reliant on another party. I wouldn’t be at all surprised if they are in discussions already though, with potential partners (Delek/Murphy?) fully up-to-date so they aren’t approaching people blind once FID takes place.
Sounds like the next news will be regarding the FPSO and that’s a key part of the jigsaw in terms of logistics, timing and project economics. Really interesting that Ian Ramsay had run the rule over Sea Lion before.
Exciting times.
It’s a very fair point buzz.
Rockhopper may be unwilling to commit funds to enforcement until the annulment case has been decided, but if that were the case why waste time and money contesting the stay? They’d have may as well agreed with Italy and moved on.
Maybe a question for the company once the committee makes a decision.
Whackford, my guess (and it is just a guess) is that they will probably sell the award.
I suppose the question is when - it’s likely to be much more valuable should the annulment case be rejected obviously, and the outcome might not be until late 2024.
I suspect they are hoping the remaining warrants are exercised so they can get to that point & then sell it to an entity that doesn’t mind waiting for the money.
The question, I suppose, is what cut a purchaser would want and how much would that leave Rockhopper with.
I wasn’t able to attend and ask questions unfortunately but Sam Moody did kindly reply to my questions via email - I have summarised his responses below:
1. In light of what’s happened with windfall taxes in the UK & Europe, have Navitas & Rockhopper got any assurances from FIG that the tax regime will remain stable for the foreseeable future?
Answer: Yes there is an agreement in principle.
2. A suitable FPSO clearly needs to be sourced - I understand that you are looking at repurposing an existing one. Has the partnership made any progress with this and have any potential FPSOs been identified?
Answer: Yes they are narrowing down options and will make an announcement once there is something concrete to say.
3. Assuming the Italians drag out the arbitration process for as long as possible, when do you believe that Rockhopper will need to raise funds next? I realise that’s dependent on the uptake of warrants but a guide would be useful.
Answer: Difficult to say at this stage because it does depend on uptake of warrants, legal costs and whether they enforce or sell the award.
I remember the days when there was practically a live stream from the AGM to the bulletin boards!
Numerous reports of chats with board members & Q&A responses - even the quality of the biscuits was reported. Journey’s Don’t Stop Believing was blaring out in 2011 if I remember correctly. Just goes to show how little interest there is nowadays in comparison I suppose.
Here you go:
https://secure.emincote.com/client/rockhopper/agm2023/index.html
They are going to put a recording of the presentation on the website so keep your eyes peeled.
The final hearing is currently scheduled for January 2024, after which a decision can take anywhere from a few weeks up to a year. So I would expect an outcome at some point in 2024 but I wouldn’t bet on Q1.
It’s highly unlikely that any ‘new’ info will come from an AGM, and certainly nothing price sensitive.
I have emailed in the following questions because I don’t think I’m going to be able to make it now unfortunately but would be grateful if any attendees could pick these up:
1. In light of what’s happened with windfall taxes in the UK & Europe, have Navitas & Rockhopper got any assurances from FIG that the tax regime will remain stable for the foreseeable future?
2. A suitable FPSO clearly needs to be sourced - I understand that you are looking at repurposing an existing one. Has the partnership made any progress with this and have any potential FPSOs been identified?
3. Assuming the Italians drag out the arbitration process for as long as possible, when do you believe that Rockhopper will need to raise funds next? I realise that’s dependent on the uptake of warrants but a guide would be useful.
Anybody here attending the AGM on Thursday?
I’m going to try (slightly work dependent but should be fine).
BrightSpot (borgo22) - whilst some nutters enjoyed your cryptic nonsense, there is no need for it anymore!
Look to Delek imo.
Logistics Manager with extensive international experience both in developed and developing regions covering Central and South America, West Africa, Norway and UK.
Core Skills: - Project Optimisation in terms of performance delivery, HSE and cost - Leadership and Assurance in Operations and Logistics - Project Delivery and Strategy Planning - Business Development - Client Relationship Management
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