Member Info for pauldrayton

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

Areas of Interest: - Offshore Support Vessels - Helicopters & Fixed Wings - Shorebase / Supply base - Inventory optimisation and management

Https://www.linkedin.com/posts/tom-campbell-6877b81a_im-delighted-to-share-that-im-starting-activity-7076944950961037312-8xB2?trk=public_profile_like_view

https://www.linkedin.com/mwlite/in/tom-campbell-6877b81a

If DEM is right that it’s working days only so we exclude weekends and a few Bank Holidays then I suspect Italy’s 10 days will end at the end of this week. No doubt they will leave it until the last minute if they do object to Rockhopper’s proposal, so the committee may need a couple of weeks after that to review.

I’d be very surprised if we didn’t hear anything by mid July. In the meantime I guess Rockhopper must be preparing their counter-memorial.

37p is a bit silly but clearly some disgruntled sellers want out, and who can blame them?

This looks cheap now so I’ve taken a position, but they really have messed this up given where they were a year ago.

And a damp squib from the government. Both the Conservatives and Labour seem intent on decimating the UK oil & gas industry.

We can only hope the FIG are more sensible.

Italy will no doubt have raised concerns about non-recoupment if they’re successful with their annulment proceedings, as part of their request for the stay to remain in place.

The committee have done the ‘right’ thing by taking Italy’s concerns into account, whilst also seemingly wanting to honour the original judgement and not delay Rockhopper any further.

It was a sensible approach, and probably the best Rockhopper could have hoped for given the circumstances.

It’s possible the committee might lift the stay entirely now that Italy have refused to commit, but I suspect they may just accept Rockhopper’s proposals and lift it with the appropriate conditions to protect Italy (not that they deserve it).

The one outcome I can’t see is the stay being extended.

I would suggest everybody should email Hunt/Shapps/Sunak to explain just how idiotic they are.

I agree LTT. I think it’s fair to say the committee may need a couple of weeks or so to review Rockhopper’s proposals, and perhaps suggest any changes if necessary. But I would expect a decision soon and by the end of this month at the latest.

Not sure if this has been posted but this is an article from Baroness Bennett following her recent visit to the Falkland Islands (hence her questions in parliament I guess):

https://yorkshirebylines.co.uk/news/world/the-falkland-islands-a-remote-territory-of-great-climate-importance/

She seems to accept that oil development is inevitable:

“As for oil, well I spend quite a bit of my time pointing out to the UK government that the International Energy Agency (IEA – not known for being a radical green body) says the world cannot afford any new oil and gas fields. But the UK government is opening up new fields around these islands, so Falklanders I met understandably respond to the IEA message by saying that they were only looking to do what the UK is itself doing – and local debate very much links this development to the urgent need for new port facilities in Port Stanley, as well as desire to diversify its budget from fisheries dependence.”

It’s up to ICSID what happens next with Italy’s request for a stay of enforcement. Italy can’t apply to the US. Their 10 day grace period to respond to Rockhopper’s proposal has expired so it’s in the hands of the ICSID committee now.

If the stay is lifted either with or without conditions, then Rockhopper may choose to enforce in the US, or another jurisdiction of their choice. It will then be up to the courts in the chosen jurisdiction to decide but it’s likely they will side with an ICSID ruling. I don’t think the likes of Harbour would get involved in funding these cases if they weren’t confident that awards would be enforced.

Given that the 30 days are up, we now know they are not just working days, so Italy have until the end of this week to respond to Rockhopper’s proposal.

I suspect we should therefore have a decision from the committee by the end of the month at the latest, and Rockhopper will presumably update the market on what they intend to do next at that stage.

I suspect they will want to get the enforcement wheels in motion at the very least, as I’m sure it’s not a swift process. They must be working now on identifying assets in various jurisdictions - the RNS alludes to the fact that it might have to be “multiple legal jurisdictions”.

In terms of costs and warrants, I wonder if Rockhopper might choose to delay the enforcement procedure until after year end (when the warrants need to be exercised by)? Or at least the most costly part which will probably be court fees etc - it might actually take a while to get to that stage anyway.

It would be beneficial for the company and most shareholders if the warrants were exercised now, so I shall do my bit and exercise mine!