The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
oj17 is correct:
“This concludes the current share buyback programme.”
There is the entry to Malaysia but it’s a bit woolly at this stage. Perhaps more to come alongside monetisation of Kveikje? They did mention they were looking at a number of opportunities across all stages of the lifecycle in the previous update. If this license is all there is to it then it’s not very exciting for now.
I note that Helge has been liking Sharifah Shahira Wafa’s posts on LinkedIn. She’s Head of Block Promotion & Marketing, Resource Exploration at Petronas.
The results of the 2022 exploration licensing round are due out soon and I suspect Longboat will be involved. But have they got other deals lined up ready to announce all at once? It sounded like it from their latest RNS.
Well spotted SpaceHoppa. Guessing the 30 day countdown to a decision from the ad hoc committee starts today then, so we should hear a decision on that by mid March at the latest.
I’m perfectly happy with Malaysia if it’s a good deal.
I just hope this doesn’t come with large dilution at current share price levels or lower.
Interesting although amateurish it has to be said.
Let’s see what comes next.
With regards to this, it does appear that this application must be done in conjunction with a concrete application to operate a license, so it’s intriguing:
“Players seeking an operator role will be subject to more extensive requirements than is the case for other licensees. Operators themselves must have sufficient resources and personnel to manage and implement all activities pursuant to prevailing relevant regulations. In the HSE area, the regulations contain requirements for players seeking to become a licensee, including an operator.
The final evaluation as to whether a pre-qualified player is qualified to be a licensee or operator is made in connection with a concrete application for an ownership interest/operatorship, which will also take into account operational and specific aspects associated with the production licence.”
https://www.npd.no/en/facts/production-licences/pre-qualification/requirements-for-new-players-on-the-norwegian-continental-shelf/
How on earth did you discover that?!
Any chance it could be a template they are using and they’ve left Malaysia in by accident?
If not then it definitely seems like a clue.
Well spotted btw!
I missed this but Longboat have applied to be an operator in Norway with the NPD:
https://www.npd.no/en/facts/production-licences/pre-qualification/
Their previous (approved) application was to be a licensee, so this is a new development although the website was last updated in November so the application must have been put in a few months ago at least.
I wonder if this is related to a new deal of some sorts, or are they just getting their ducks in a row in case they finally manage to find something suitable?
PS. The Euribor rate has increased by a healthy amount since the award was announced.
With regards to inflation, although costs will have gone up over the past couple of years, Rockhopper are hopeful that the reworked project will show a lower cost per barrel. I’m sure Navitas are very shrewd so let’s see what they come up with.
I have.
Hoping for an update from Navitas on how the reworked Sea Lion project will look in Q1.
The January ICSID committee hearing was just procedural, dealing with timescales, rules on submissions etc so the evidence itself hasn’t been discussed at all yet. Ruling on stay of enforcement expected in 2-3 months from now, and 18-24 months for the whole process remains current guidance from when the annulment request was submitted.
Exploration was reporting a fact, it’s not his fault what people choose to do with the information. Who knows what’s going on behind the scenes but the shipping movements are available for all to see.
If you’re an O&G company looking at the next 5-15 years, then you have to take the polls and Starmer’s comments seriously. The man is utterly clueless and will be terrible for the country and the economy but it’s looking likely that he will be PM.
With that in mind you have to exit the North Sea altogether and look at investing in other parts of the world. It’s a massive shame but that’s the reality - both the Conservatives and Labour are guilty but there is no incentive whatsoever to invest money into the North Sea now with Labour looking likely winners of the next General Election.
Look to Asia imo.
More of the same waffle about successful exploration (that has decimated the share price) and no appraisal drilling until 2024.
They surely MUST have something else lined up - Kveikje monetisation hopefully following the license extension award.
And what else?
30 days is long for a well test but that will include some contingency time and I suspect they will want to get as much data as possible on the reservoir, and include some fracking in the programme.
3-4 weeks for results I reckon.
I’m a bit nervous about the share price reaction. 2.5p after a discovery and commencement of a full well test is not signalling a lot of confidence in that test being a success and there has been relentless selling for a while. Let’s hope it’s not those ‘in the know’.
Many thanks Explo
Thanks Exploration - very interesting stuff.
Given the tight reservoir, what makes Shell/Deltic think that Pensacola might be a commercial success?
We have recently seen Longboat Energy flow test their Oswig discovery in Norway with OMV which flowed through a tight reservoir but flow rates were low and recovery rates too.
I realise this is a different type of reservoir but if it has similar characteristics then what do Shell & Deltic think they can do to overcome it?
Is there any comment from the companies on this?
Cheers.
$75-90 Brent is fine. Anything above slows the global economy, contributes to inflation and causes governments to intervene with windfall taxes. Anything below reduces profits as well as the incentive to explore/appraise/develop.
We could do with a period of oil price stability which would be better for everyone. The government really has messed up with the windfall tax but hopefully they will see sense at some point.
This is quite an interesting report (apologies if it’s been posted before):
https://www.biicl.org/documents/10899_annulment-in-icsid-arbitration190821.pdf
So there we have confirmation. I wonder if they were waiting for the Kveikje Discovery Extensions before monetising as that clearly adds more certainty and value for a purchaser. Or maybe they intend to keep going for now.
The Oswig extension was expected but useful and let’s hope they are right - it will be interesting to see how quickly they work up another drill there.
The Lotus prospect sounds interesting, especially with a 56% CoS. Not a huge prospect but 30% stake is healthy.
They still need to do some work on getting a production deal if possible and let’s hope progress is finally being made in the background.
Does a decision on quantum come under the grounds for annulment though LTT?
They could have submitted a request earlier but you’d assume they definitely would have done at the first video hearing so 30 days from then would be 9th February at the latest for a decision.
I agree that the stay is likely to remain in place but I haven’t checked other cases to see what’s most common in these situations.
Totally agree that it’s great so see them getting started so swiftly.