With the pace of introduction and cost reduction in wind and solar power plus the rapid introduction of ev's, resources the size of Saudi's or for that matter HUR will never come close to exhaustion, make hay while the sun shines because peak oil is forecast in some quarters to be in the next few years. The rate of introduction and cost reduction of alternative sources of power have confounded the forecasters by a ridiculous amount.
this bloke puffet has been spot on up to now. (advfn).
'Had problems with the hook up (was a very tight schedule) now sea state against them so back to Moray Firth till weather improves (Gale forecast Mon to Wed next week also.). Minor delay.'
Brilliant Eric, in a nutshell!
So do cancellation of some of the options tell us anything, such as the high valuations mooted for the company are no longer considered viable and perhaps even the 7-8p region is now beyond our reach? Surely a cash injection by a potential co-partner would have been expected us to attain these dizzy heights? Not now expected it seems?
Most of PMO gas produced is in the Far East and sold at a price correlating to the prevalent oil price. So not much respite there.
'pmo and enq had far less debt in 2014/15 .'
I doubt that's the case, with PMO biggest drag in 15/16 was rescheduling their debt not accruing. They didn't have Catcher producing at 35k bbls/d net to PMO then or discovered oil at Zama not to mention Tolmount on stream next year. Massive improvement from those days. The acquisition from ENI for 250M is estimated to be worth £1B now.
Too kind!
Should they convert their warrants (old and new) would own 18% of the company. Plus the company are in hock to them for the £900K loan. They wont allow the directors to milk this for any longer than is necessary now. It either comes together or zachary will end up with the lot.
May be of interest if not already posted. From 19/11/2018
The company has entered into a Front End Engineering and Design (FEED) contract and frame agreement with Dril-Quip for the supply of the subsea systems. The frame agreement replaces the previously announced letter of intent, Dril-Quip said on Thursday.
The current estimated value of the equipment portion of the scope of work is $207 million which includes plans for up to 30 subsea production systems, including wellheads, horizontal trees, tubing hangers, control systems, associated production and injection manifolds and subsea umbilicals.
Under the frame agreement, it is envisaged that Dril-Quip will provide vendor financing for up to 30% of the equipment portion of the contract. Formal contract award will be subject to the agreement of a definitive contract and Premier taking a final investment decision.
Russia and Saudi will be meeting this week at the G20 and probably set the agenda for the OPEC meeting the following week.
Aramco won't want to float in a low price environment for oil, they'll want the best price and to get that oil needs to be up. If they float it'll be a public company surely?
Bit More:
On balance I admit that paid remuneration is not as extreme as I previously concluded, even to the extent that if Directors had not deferred payment/ taken as options then the Company would probably not now be trading, so credit due there. If value is realised as hoped then the options pale into insignificance?
I have not yet responded so if anyone has any queries please post them here, via ADVFN email or email me direct.
Hope this helps a little. In the end game.
This is from PJ1 on another board and is in answer to and email:
I'll start with perhaps the most important bit that Investors want to hear. Bearing in mind Directors are always positive, however it has come from a NED who offers a little more balance as in effect they are partly there to check on the Executive Directors.
''The Board is confident that the project value remains undiminished and we are in the end game of monetising the Project.''
On to Director remuneration and options. Most of this is probably known and in the annual report if you have the experience to extrapolate it.
1)''The cash amount actually paid out in the 6 year period is not £4.8 m but approximately £2.4 m, an average of £400,000 per year for the entire board. This included not just Christopher, but Duncan Wilson who was paid as CEO of the Travel Business, a separate business to the Project. £1.4m was directors’ fees converted along the way into shares and 1p options, which are to all intents and purposes the same thing, by individual members of the Board.''
''This equity/1p options was purchased at an average of 9p per share, so the directors have, based on the current share price, also experienced significant losses along with other shareholders''
''The majority of options owned by the directors are 1p options which were purchased by the directors as exchange of salary at an average of 9p plus per option. They are in effect equity and characterised as options for tax reasons. It would be entirely unfair to time- expire these as they are, to all intents and purposes, equity. As stated above, the directors have in any case experienced significant losses on those options.''
Two of the three non-executive directors, Tim Hill and Grahame Cook have not been paid any cash emoluments since appointed as non-executive directors. I admit I was not aware of this.
2)''The share based payments are not cash payments but theoretical amounts calculated by the accountants in accordance with accounting standards to reflect the existence of an achievement based incentive scheme. The vast majority of these rewards will not kick in due to the failure to achieve time limited goals.''
3)Quite a defence of CE. ''Christopher has been assiduous in the extreme (most would have given up or left the Company) not just in pushing the Project forward as hard as possible but in raising money at regular intervals to ensure the continued survival of the company. Under other leadership, the company would have gone under years ago. He has also taken a 50% pay cut in 2018 to £120,000 following the sale of the Travel Division, which will remain in place until the Project is monetised.'' Each Investor will have to draw their own conclusions.
4)''You mention the market cap of £7m, but the directors’ assessment of the value of the Project is a multiple of this figure and Board fees should be considered in the light of the large scale Cavo Sidero Project and, historically a large and compl
https://www.resilience.org/stories/2018-11-19/peak-oil-review-19-november-2018/
Implies the Texas Permian will be the biggest driver to meet oil needs up to 2040, Permian needs to increase its output by 1.5M bbls/d for the next 7 years?
Worth a read anyway.
Fair enough members, but the point Iwas trying (and failing) to make that we are not much more attractive as a TO candidate now than before the collapse due to the high debt level. No more from me on this.
members I'm very much on the losing side of this.
In the event of a TO the cash required has only changed by 13% since the 'crash' assuming TO accepted at current share price. That's the value of the company not the M/C.
The company (plus debt) was valued at about £3B before the price collapse and now at £2.6B now. Only a 13% correction.
One large Texan earthquake and you'll get $100 overnight!