jonjo24 Sep 2014 12:48
OK yes this is all the info we are all going on below but the way the sp move on the announcement of the 3 year SC54 extension says it all.
The principals of HALO are Andrew Cochran and Bill Phelps, formerly executive directors of Coastal Energy Company ("Coastal"), who were instrumental in the sale of Coastal to Compañia Española de Petroleos, S.A.U. ("CEPSA") for approximately C$2.3 billion in November 2013. Both Andrew and Bill have an in-depth knowledge of the region, not least because Coastal's main assets were operated 100% large blocks in the Gulf of Thailand as well as varying interests onshore Thailand. They have substantial experience in bringing assets to production and, on acquisition by CEPSA, Coastal's daily production was around 22,000 bopd from three offshore fields.
On completion, HALO will hold a 15% interest in offshore Service Contract SC54A in the Philippines, which contains a number of existing oil discoveries in moderate water depths, as well as further exploration potential. In the opinion of the Directors, it would be possible to bring one or more of these discoveries into production in the near-term. Partners in SC54A are NIDO Petroleum (Operator, 42.4%), Yilgam Petroleum Philippines Pty Ltd (30.1%) and TG World (BV) Corp. (12.5%). The Heads of Agreement calls for HALO to also hold US$1 million of cash, sufficient to fund its current contractual drilling obligation on SC54A. The Directors believe there may be potential to increase HALO's interest in SC54A.
Proposed Board Changes
Following completion of the acquisition of HALO it is envisaged that Mr. Cochran, who previously served as the CEO of Dominion Petroleum Limited and held founding and executive positions with Salamander Energy plc and Endeavour International Corporation, will join the board of Wessex as Chairman and interim CEO. Mr. Phelps who was the Chief Financial Officer ("CFO") of Coastal and before that CFO of NuCoastal Corporation and NuCoastal Thailand, will join the Wessex board as a non-executive director.
Following completion of the acquisition of HALO, Malcolm Butler has agreed that he will step back from his role as Chairman and interim Technical Director to become a non-executive director and will not seek re-election as a Director at the next Annual General Meeting. It is anticipated that the new board will utilise its expertise and contacts to undertake further transactions to help build more value for shareholders