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Does anyone know if PMO shares will be suspended prior to re-admission as Harbour Energy, and if so over what period? It's not clear from either the prospectus or the summary of main events?

One argument made by several posters for holding shares now is that institutions will have to buy them when its re-admitted and effectively in the FTSE, (though I suspect many will pick them up as bond holders sell their holdings), meaning those who wait and see could miss out if there is a suspension period and they open/readmit at a much higher price.

End of the year, so special div payout Q1 I guess
https://www.africaoilandpower.com/2020/11/27/woodside-to-begin-drilling-campaign-in-senegals-sangomar-in-2021/

Jefferies in a note after the Trading Update valued PMO 5% stake at $200-250m which has it firmly in the 15-20p range. Its a shame the creditors pulled the rug on TD's BP plan and imposed a rights issue (which they knew was never going to fly). At least it had the attraction of LTH's having a chance to average down in a managed way. Many folk felt there was not a need for a rights issue just creditor support needed for a perfectly decent plan to buy the BP assets which could have seen the share price back to £1.50 and more once the oil price recovered. As it is the Chrysaor deal means the vast majority of LTH's will never get to see a profit because the deal was done at the very bottom of the market. Its a shame that the creditors couldn't see a way to back a decent plan but seems like a number were pretty unpleasant people, and a shame they were not able to back an honest British business. To get to a 30-40p share price needs a big hike in the oil price.

I'm sure this has been covered further back on this Board but I've not followed ENQ for long but would really like a view on the debt situation. ENQ looks like it has c 10 years of 2P and 10 years of 2C at current production. Problem seems to be that at oil prices below c $55 it can't keep the debt mountain at bay or free up enough cash to convert the 2C quicker so on the face of it is (regardless of how well run) in a bit of a bind. At low oil prices it seems to risk going the way of PMO and fizzling out probably into Private Equity hands with big dilution or nothing for shareholders. At higher prices it can potentially chuck of £400m of cash pa and it lives to thrive with a big uptick for shareholders. Does that seem fair?

It's surprising how little ambition Cairn seems to have. Perhaps they are waiting for the Senegal money and the India arbitration (yawn) but surely now would be the time to pick up some assets with some production and exploration potential and PMO would have been perfect plus the BP assets with lots of development and exploration potential. OK production not as big as Chrysaor PMO but well north of 120 k with Tolmount on board, and PMO debt could have been reduced by more than the amount the creditors wanted to in a rights issue.
If not PMO or BP lets hope they have some deals in the offing, as its not really clear what the company wants to be.

The bad news was good because we discovered what the problem was and why it was being pushed down so hard and shorted down to 11p. The operational update revealed major issues with Catcher which were going on during and after the negotiations, hence the significant production downgrade. On top of this you can read between the lines that there have been issues getting Solan P3 operational. The bad news was good because we got to hear what has happened and that the issues are now fixed, hence the price bounce when it got leaked yesterday. Clearly the pro's, creditors and those in the know knew about these issues. Once fixed the risk is removed and the SP is now moving back to the 20-30p range which is probably fair value for 5% post merger. It probably won't move towards the middle of that range until the prospectus is out, so would expect it to settle into 16-22p for a while, dependent on how oil price moves.

Today's rise is baffling given no actual news, which suggests there is some news we don't know about. For LTH's SP is only back to where it was just before the merger announcement .
Its not true the deal is done as Chrysaor or PMO could back out (for a fee) or shareholders might vote it down or there might be issues with re-admission of the shares (remember its effectively an IPO). Possibly some risk premium has been removed today with the rise in oil price and shorts exiting but it's a big rise for one day on no news. PMO do have a habit of announcing more than just trading news in trading updates.

This is the total number of PMO shares. There will be be 19-20 times that number post merger with Chrysaor in order that everyone gets their allocation according to the terms off this poor deal unless of course there is a scrip. The prospectus will however, when it comes, indicate a value on the combined entity hence all the arguments on this forum as to what that might be.

The existing creditors deadline is 3rd Nov but can be extended. From the merger RNS available on PMO website:

Existing Creditors’ approval
Premier is seeking consent from Existing Creditors for the Transaction and, in order to support implementation of the Transaction, an extension of the existing maturity date of its debt facilities from May 2021 to 31 March 2022 by means of Court-approved restructuring plans. Existing Creditors (other than Premier’s retail bondholders) are being asked to enter into a support letter pursuant to which, among other things, they commit to approve the restructuring plans and agree to waive the Premier Group’s financial covenants. The support letter will remain in force until the Transaction completes, subject to certain limited termination rights.
As at the date of this announcement, over 43 per cent by value of the Existing Creditors have entered into the support letter. The support letter will terminate if the requisite thresholds of Existing Creditors, being in broad terms 75 per cent of the Existing Creditors, have not entered into it by 3 November 2020 (or such later date as may be agreed). Pending these thresholds being achieved, sufficient Existing Creditors have provided forbearances in respect of any defaults that may be argued to arise under Premier’s debt facilities by virtue of steps taken in connection with the Transaction.

Does anyone know what has happened to the Solan production? The August results presentation said additional 10k per day from September. You would have thought that by mid October they would be obliged to let the market know if this production is coming on stream or not or if the Solan bogeyman has intervened.

Its rather like an IPO but with the PMO share price as the proxy for the valuation of the combined entity i.e. c $3bn. I suspect most here think that's too low but its probably a reflection of risk and market appetite for effectively a mid cap oil IPO when sentiment is shot to pieces. I'd expect the share price to follow market sentiment and the oil price and behave a bit like a mid cap oil co until 1. the bondholders vote which may move the shares price up a little or 2. if another party turns up.
Otherwise suspect the share price is range bound at say 13-16p.
I suspect Chrysaor and co are hoping that by the time the transaction completes the oil price will have improved and sentiment is better ensuring a successful takeover/IPO of sorts after which a valuation toward that of Lundin/Aker BP might be achievable. A lot will depend on the prospectus and sentiment over the next few months.

This looks a fabulous deal for Harbour and a good one for the creditors and a very poor deal for PMO shareholders at the very bottom of the market, a market in an oil price crash mentality.
It's probably worth holding onto the shares in case someone else comes looking. There are other companies with strong balance sheets, Cairn, Woodside, Apache etc who could also swallow up PMO and would find the price very attractive. The sheer complexity of the proposed deal and its timescale gives plenty of opportunity for others to make a move - let's hope they do or lets hope that a shareholder action group comes together and demands that PMO shareholders get more of the pie. After all they need shareholder approval. In any kind of half normal market PMO is undoubtedly worth much more than they are getting here.

Can anyone make the case for an equity raise right now, with such a depressed share price and significant dilution at likely 30-35p range?
PMO will have to address the balance sheet at some point but surely not now when the cost of raising equity is so high. Why not take on a little more debt which would be paid back anyway from additional 17k BP production in due course. Even a sale of Zama doesn't look like great business right now and I note in the updated company presentation that on the 2020 priorities (last page) there is no mention of Zama sale. (Is TD still fighting to keep this?).

I agree and hope there won't be an RI. It's a small sum to add onto the overall current debt and covenant renegotiation! TD has openly said he would rather not sell Zama so perhaps the internal deal is a sale of part of the Zama stake not all, withdrawing from the additional Tolmount stake from Dana, and no RI, with a slightly higher interest rate for the debt providers.

The point missed in the many posts this am is that there is a high chance there will not be an RI at all. The theoretical rights issue/equity raise less ARCM contribution is around £140m. this is small beer in the grand scheme of PMO debt, potential Zama farm down, and the larger player/producer that PMO becomes from this deal. TD's short term focus is the 'stable platform'. Once that's in place the May21 issue is dealt with and the revolving credit is secure, leaving him to find an extra £140m of debt headroom or new additional lender prepared to stump up £140m at a nice interest rate. The only dilution is likely to be the 8.91% to sort ARCM.