Member Info for pied_piper

Half-of-two.

I believe it's because people are starting to realise that unless the loan note holders take a serious haircut in the restructuring ( I would suggest it needs to be a reduction of the loan from circa $10m down to $5m and a halving of interest rate), then the maths really doesn't work very well for eme being able to pay off the loan and interest from gas sales divi's.

Get a big haircut - then it might just work out for eme but one has to weigh up how likely is it that the loan note holders are feeling compassionate? Do they need to be, now they have a good asset as security?

We'll know soon hopefully.

Of course the lenders supported it at that stage. For the note holders it's far better to have a project that is now going ahead rather than one which was still beset with delays and disputes. Now it's different. They have a charge over a saleable asset.

I'm certainly not suggesting the note holders want to own or manage the rights to Mako. What I said was that IF Conrad or Nations offered a sensible sum for the EME share then the note holders may well accept and there's nothing EME could do about it.

I agree 100% with Mitriti that the restructuring is the next vital RNS. If the note holders play hard ball , eme is stuffed.

Where I disagree with Mitriti ( and MrH) is the idea that a "bad" restructure would be inadvisable because it damages the Mako project and might jeopardise it altogether.

Eme is now a bit player here and pretty irrelevant. If either Conrad or Nations were to offer the loan note holders anything between $7.5m - $10m for the empyrean interest in the project, then I suspect the note holders would bite their hand off and walk away happy. Empyrean would end up with nothing ( and no debt).

Whatever the discussions going on, there has to be a realisation that the earliest cash available from the sale of gas for Empyrean ( and therefore for the loan note holders), is going to be somewhere in the middle of 2030 - assuming no project delays.

I don't see the loan note holders waiting that long to get any money back.

Another busy day for Conrad over in Oz. One trade all day!!Lol

Just looking in on some of the "factual" statements made earlier....

StellaOne

Posts: 374

Price: 0.0925

No Opinion

RE: CLN restructure: Cash Vs liabilities = placings???Today 09:45

BLUEROAD888 - you have conveniently missed the fact that EME are entitled to 75% of their capital expenditure in Mako.

I think you'll find this is incorrect. Empyrean have given up their rights to any back costs with the deal they have signed. And on the subject of costs, they will also have to "pay" their carried costs out of any production dividends (when they become entitled to some , probably starting in in 2030) which will be approx $6.8m. ( 8.5% of SPV's 25% share of $320m). Then they have to pay back the CLN's.

This starts to satisfy point 2 - does it not?

Pelican Acquisition Corporation (NASDAQ: PELI) and Greenland Energy Secure Critical Arctic Logistics Support; Selects Desgagnés to Mobilize for Jameson Land Basin Drilling

23/02/2026 11:15am

GlobeNewswire Inc.

Pelican Acquisition (NASDAQ:PELI)

Intraday Stock Chart

Monday 23 February 2026

Click Here for more Pelican Acquisition Charts.

The leadership team behind the formation of Greenland Energy Company (“Greenland”) today announced a strategic logistics agreement that had been entered with Desgagnés, a premier Canadian maritime group, to support the transportation of cargo for upcoming drilling operations in the Jameson Land Basin with coordination from and approval by Royal Arctic Line, Greenland’s exclusive license holder for maritime logistics.

This agreement provides the specialized ice-class vessel and arctic beach landing capacity required to mobilize equipment and crews for one of the industry’s most anticipated frontier projects. Desgagnés also provides port services at the Port of Valleyfield, a port specializing in consolidating Arctic projects and handling breakbulk cargo. Desgagnés’ beach-landing services are designed to complement Royal Arctic Line’s essential sealift services and operate within RAL’s national logistics framework. It marks a pivotal operational milestone as the company prepares to unlock a basin with significant oil resource potential.

This agreement was executed by March GL Company, the entity along with Greenland Exploration Ltd. set to merge with Pelican Acquisition Corporation (“Pelican”) (NASDAQ: PELI). Upon closing of the pending business combination, the resulting company – Greenland Energy Company – is expected to list on Nasdaq under the ticker symbol “GLND.”

“Reliable Arctic logistics are the backbone of execution in this region,” said Robert Price, CEO of March GL and incoming CEO of Greenland Energy Company. “We are moving from planning to action. Desgagnés brings the specific high-latitude experience and marine assets necessary to safely transport our drilling infrastructure into the Jameson Land Basin. Working closely with Royal Arctic Line ensures alignment with Greenland’s logistics framework and strengthens overall supply chain resilience. This partnership ensures we have the supply chain resilience to execute our 2026 campaign and deliver on the basin’s world-class potential.”

The collaboration supports the launch of Greenland’s first onshore oil exploration program in more than half a century. Larry Swets, CEO of Greenland Exploration Limited and future Executive Chairman, emphasized the strategic timing: “We are rapidly de-risking this project – not just geologically, but operationally.”

Headquartered in Quebec, Desgagnés operates a modern fleet of ice-class vessels across the Arctic. The partnership underscores a shared commitment to responsible development in sensitive environments.

https://uk.advfn.com/stock-market/N

I think you can argue this either way depending on your PoV.

Maybe the Bod dug deeper and didn't like what they saw. Maybe they interviewed ex senior management and didn't like what they heard which has led to more potential skeletons. Or maybe they just decided they needed to pay for what they believe will be a clean bill of health - other than that which has already advised.

Nobody really knows at this stage.

The problem as I see it, is that one new RNS with further bad news, further complications, more resignations etc - could see the s/p halve in an instant. (The mm's will milk it).

I like the share and prospects, but would rather pay 8/9/10p as a long term play - when the dust has settled and the facts are known.

It says the opposite to "they have completed the investigation".

"The former CEO was informed of these allegations on Sunday 15 February 2026 and the Board Investigation is continuing. The Company has reported the Board's findings so far to the Company's auditors."

Was the £4m placing raised on misrepresentations? Is so, what are the legal ramifications of that for the company/Ashman?

Why is it that people think bb's are only for positive views only? I understand the desire to keep the "this is a sh*t share" one liners off the boards, but have never understood people not wishing to discuss possible downsides . Or do current longs always shout from the rooftops hoping to encourage others to buy. I'm sorry you don't want to put forward your valuation thesis blakie.

And as for Dave. Lol. You must be very proud of the wonderful contributions you make to this bb. You need to get out a bit more as you seem to be developing a one track mind.

Let's see what the loan restructuring brings. TTFN.

Blakie.

I love this share and I'm hoping someone can come up with a reason that persuades me to buy back in. At the moment it's a struggle. Perhaps you can help??

Maybe you could explain the expected cash flow waterfall?

Depending on the exact deal with the Indo Govt, the earliest eme can expect any cash from the gas sales is either mid 2028 and is in the region of $1m p.a., or it could be as late as 2030 and will be nearer $2m p.a. (based on peak production from Jan 2028 and sales at $9 per mmbtu)

In either scenario, this is not enough to pay the interest on the debt as it stands - let alone paying of the capital element.

I cannot see a reason why the loan note holders would take a massive haircut as their security - the Mako % - will be sufficient to pay off the loan by the end of the contract in 2037.

I've used the phrase before but this deal is just a "debt repayment vehicle" for eme .

You probably won't be bothered, but please pick a hole in my timing and quantum argument concerning the gas sales benefiting eme - rather than their creditors.

Thanks.

I fully expect delays. Delays and Indonesia are good bed fellows in the same sentence.

But I'm interested to know what you think they might be drilling?? You do know they've actually got the gas??

Pretty flawed logic there Blueroad!

IF this gets to .055p - there will be a significant reason for it - e.g CNOOC start legal proceedings for the $12m or, more plausibly, eme lose control of their Mako/WNEL stake through the loan restructuring. In that event buying at .055p would be the worst thing to do as the obliteration of eme would be following in pretty short order.

Cricket. You're wasting your breath. They're all set in their ways here and trying to convince themselves this is a massive winner! Try asking why it is that Conrad (debt free and ignoring their additional asset rich position) has their stake in mako value at max $3m per 1% and Eme ( debt laden and additional asset poor) are somehow valuing their Mako stake at around $9m per 1% at the current s/p. Doesn't make any sense.

Stella: Ref your earlier comment about the price being.>085 - .115 - just a little bit of information about how the mm's work which might help your thinking.

There are seven mm's for eme and Winterfloods were the first ones out at 7.30 a.m. ( the earliest they can be) . Their quote was the one you saw. Over the next half hour the other mm's come on the board with the last one displaying at 7.59 - moments before the opening. It's not until that point that you get the full picture as to what the opening price actually is. Having Level 2 prices helps you to see this in action and, imo, is worth the investment if you are an active trader.

This part I found very interesting:

There are several strategic and financial reasons why the partners, and specifically Empyrean, moved their interest into a Singapore-based Special Purpose Vehicle (SPV) during the January 2026 settlement.

While it doesn't change the underlying geology of Mako, it significantly changes the "legal plumbing" of how money reaches Empyrean's lenders and shareholders.

1. Simplified Tax Treaty (DTA)

Singapore has one of the most robust Double Taxation Agreements (DTA) with Indonesia.

Withholding Tax (WHT): Normally, dividends or interest payments leaving Indonesia are subject to a 20% withholding tax. Under the Singapore-Indonesia treaty, this is often reduced to 10% or even 0% for certain corporate structures.

The Benefit: This ensures that more of the $1.67M annual net profit actually makes it out of South East Asia to pay down the London-based debt.

2. Legal Ring-Fencing and Debt Security

By holding the 8.5% interest in a Singapore SPV rather than directly in the Indonesian PSC:

Ease of Enforcement: Empyrean’s lenders (the loan note holders) likely preferred this because Singapore law is highly predictable and "creditor-friendly." If Empyrean defaults on that $15M debt, the lenders can seize the shares of a Singapore company much faster and more reliably than they could litigate over a direct participating interest in an Indonesian PSC.

Liability Protection: It isolates the Mako asset from any other potential liabilities Empyrean might have elsewhere (such as legacy costs from their Chinese or Californian interests).

3. Facilitating the "Nations" Carry and Farm-down

The farm-down to PT Nations Natuna Barat was a complex transaction involving a 75% interest transfer and a $320M carry.

The "Clean" Exit: If Empyrean eventually needs to sell its remaining stake to a third party (or to Nations) to settle its debt, it is much easier to sell shares in a Singapore SPV than it is to go through the grueling Indonesian regulatory approval process (SKK Migas) required for a change in "Direct Participating Interest."

4. Efficient Dividend Waterfall

The SPV acts as a "clearing house" for the revenue:

Incoming: WNEL (the subsidiary) receives its share of the profit gas.

Deduction: The Singapore SPV pays any administrative costs.

Priority Payment: It pays the secured lenders (the $15M debt) directly out of the SPV’s accounts before any cash is allowed to move up to the "Empyrean Energy PLC" parent level.

➡️ The Reality Check

While the Singapore SPV makes the administration of the debt more efficient, it does not solve the fundamental maths problem:

Even with 0% withholding tax, $1.67M a year (at $9 gas) is still insufficient to retire $15M in debt plus interest before the 2037 expiry.

The SPV structure essentially makes it easier for the lenders to eventually take over the asset if the maths doesn't improve, as they now hold a charge over a Singapore-registered entity.

Thanks for your comments Mitriti. Without wishing to belabour the point, one last go before the next news (other than the next post!):

Under the Gross Split PSC (specifically the updated MEMR 13/2024 rules), the 20% First Tranche Petroleum (FTP) is not a separate, additional tax. It is a "carve-out" of the production that ensures the government gets cash from day one, but it is credited against the Government's total share of the split.

Here is how the maths actually "nets out" once you reach the Profit Gas phase (post-repayments to Nations and Conrad expected in early 2030):

1. The Revenue Flow

The "Total Government Take" in a Gross Split contract is designed to be inclusive. The 20% FTP is essentially an advance on the split.

Gross Annual Turnover: $324.1M based on peak production at $8/mmbtu.

Total Government Share (Split + FTP): For gas projects, the effective "Base Split" is usually around 51–52%. The 20% FTP is the first part of that 52%.

Gov Total Split Share: ~$168.5M (approx. 52% of Gross)

Contractor Share (Gross): ~$155.6M (approx. 48% of Gross)

2. The Deduction of OPEX

In a Gross Split, the Contractor receives their 48% share and must then pay 100% of the OPEX from that amount.

Contractor Share: $155.6M

Minus Annual OPEX: –$40.0M

Contractor Taxable Income: $115.6M

3. Corporate Income Tax (CIT)

The government takes one final slice here.

Tax (approx. 40-44%): –$50.8M

Net Contractor Profit (The 100% Pool): ~$64.8M

4. The Partner Split (75/25)

Nations (75%): $48.6M

WNEL (Conrad/Empyrean 25%): $16.2M

5. Empyrean’s Annual Take (8.5% of WNEL)

Empyrean Net Annual Profit: ~$1.38 Million

⚠️ The Conclusion for Empyrean

Even with this more favorable (and legally accurate) calculation where the 20% isn't "double-counted," the outlook for Empyrean is still very difficult:

Annual Net Profit: $1.38M

Projected Debt (2030): $15M

Years to clear debt: ~11 Years (taking them to 2041)

PSC Expiry: 2037

The maths indicates that Empyrean will likely run out of contract time before they can repay the $15M debt from Mako's cash flow alone. They are effectively "underwater" unless the gas price stays significantly higher than $8 or the PSC is extended. If the gas price were to go to $9 then the net annual profit would be $1.67m for Empyrean - which is still not sufficient to repay the debt before the expiry of the Duying PSC in 2037.

Thanks Mitriti.

I think the Govt take is 20% initially whilst cost recovery is going on, and then it goes to 65%. The remaining 35% is then available to the JVP's but tax is also deducted from this portion. In this scenario ( and assuming gas at $8/mmbtu and peak production rate) "Profit Gas" does not come through to eme until late 2029. Given that they are entitled to 8.5% of the 25% that WNEL have, that equates to an annual dividend of $1.28m after all deductions and allowing $50m for opex. This is clearly a problem since it's not enough to cover debt interest , let alone any repayment of the debt.

Having now worked it all through in detail, that restructuring RNS is more important than ever.

Good luck.

And while you're at it, what total percentage do you think Indo Govt will take of prodution?

I'm glad you're here Mitriti.

Assuming first gas on 1st Jan 2028 (to make thinks easier) I reckon Nationas should be clear of their carry cost by mid to late 2029. What do you reckon?