Member Info for pauldrayton

Understood, thanks Mogger. Much appreciated.

Good news on the PIM this morning. Pleased to see it's finally been submitted - an awful lot of work has gone into it. RKH's comments tie in with PMO's that initial feedback is expected in September so the due diligence phase would continue in Q4 if it's well received.

Can I ask about Ombrina Mare again and apologies if this has been covered. Perhaps Mogger can help! Why has the judgement on liability & quantum been delayed just because a decision has been made on jurisdiction? Surely liability & quantum were being considered right up until Italy's appeal so I don't understand why they would now take longer to decide. Also are we now back to the 120(+60) day deadline or has that now become irrelevant?! If so then when does the timer start counting? It just seems odd to me that we now have to wait until Q1 and would be grateful if anybody could shed some light on the process.

Many thanks.

PIM to be submitted imminently.

As expected - let’s hope imminently means imminently!

I’m not ‘in the know’ but I emailed RKH a couple of weeks ago about Ombrina Mare and in their reply they mentioned being well placed for M&A activity. I hadn’t asked about M&A so I thought it was an odd thing to say but it made me think that something might be in the pipeline. I know there was talk of Brazilian assets so it could be something to do with that, or something entirely different.

carroteater, you might be right or you might be wrong.

But Premier Oil have been in discussions with UKEF for a long time, including a number of meetings in recent months.

If it was certain to be rejected you'd think they would give it up and pursue other options, but they are proceeding with the application.

Zama appraisal drills have now finished. The results will be submitted to an independent auditor and I think they are expecting a full report towards the end of the year.

200 million barrels is about right. From the way she was talking I now expect Zama to be sold.

https://icsid.worldbank.org/en/Pages/cases/casedetail.aspx?CaseNo=ARB%2f17%2f14

So the Tribunal has issued a decision on jurisdiction which has gone our way.

I take it that the only remaining decisions are on liability & quantum. If so there shouldn't be any further delays once the final briefs are submitted. So 120 days once the briefs have been submitted with a possible 60 day extension.

Unless I'm missing something.

No worries fecm, as I understand it by end of September it will be clear if there are any major reasons why UKEF wouldn't be supportive, and an indication as to whether or not the application will be successful. A formal decision either way may take a bit longer. They have had a number of meetings already though and are proceeding with the application so they must be hopeful at the very least.

Spoke to PMO about this and they said the application is imminent alongside a number of expert reports with initial feedback expected in late September.

Zama appraisals good for PMO. Looks like a significant resource they have there. Let’s hope having that on their balance sheet helps them with Sea Lion.

sabyam, it simply can’t be correct for the reasons I pointed out. Why on earth would they give 30% of Sea Lion away for less than 7% of CAPEX to first oil? That’s not even including costs to date. It’s utter nonsense wherever it came from.

PMO have stated previously that they would not seek a partner until funding is secured. So I suspect that either they are expecting funding to be secured or the article is incorrect.

$100m would do very little to help funding, and would be nowhere near the value of 30% of a fully funded project so I also suspect that the article has wires crossed somewhere.

Thank you for the links - much appreciated.

Any idea why RKH state a different timescale then?

PS. Come on GreySquirrel spill the beans!

Can mogger (or anybody else) point me in the direction of where the arbitration panel are supposed to come to a decision within 120 days (potentially extended by 60 days)?

I can't seem to find it on their website. If that is indeed the case, any ideas why RKH are stating Q4?

Thanks.

The reality is that Sea Lion was never going to be sanctioned until after the Zama appraisals. They always said middle of this year. It's now slipped towards the end of this year but I think PMO sound keen to get it done asap now.

Ombrina Mare is the interesting bit whilst we wait.

Excellent presentation. Just wish they'd get on with it now!

I do think there might be an element of underpromise and overdeliver now. They're fed up with missing timescales (and rightly being chastised for it) so I think they're being extra cautious with both the Ombrina Mare result and Sea Lion FID.

The Board have already stated that any fundraising would be done at a significant premium.

Currently still meeting with potential JV partners so a placing is only one option.

If it happens, it will be closer to £1 than 34p.

* Contractor LOIs being converted into fully termed contracts
* FEED to complete end Q1; onshore logistic projects underway
* Financing structure progressed; extensive due diligence nearing completion – Contractor financing matured – Preparing formal application for senior debt
* Progressing regulatory reviews and approval processes
* Environmental work completed; formal approval of EIS expected at sanction

Wasn't that used for Solan? Don't want a repeat of that!