Member Info for rossannan

harel

The share price and market sentiment might dictate the price, but they would not prevent a raise.

harel

There is nothing to stop them doing an equity fund raise.

harel

Why do you say that an equity fund raise is off the table when it is something that the BoD specifically mention in the passage that jimtheknow quoted?

Dreamland99

As jimtheknow just quoted, the BoD are happy that

"When considered alongside a variety of other potential funding options available to the Group, including concluding a farm-out arrangement or equity funding raise, ... the Group will be able to raise the additional funding required to execute the exploration well in satisfaction of all licence requirements."

So the reasonable worst case scenario appears to equity taking one for the team. For the drill not to happen now I think we would be looking at a substantial plunge in the oil price and/or a very significant Covid spike.

jimtheknow

What else are Stena going to say? This conversation is, after all, more about how the drill is going to be funded, not whether it is going to be funded. Whether it is going to be funded (i.e. whether it is going to happen at all) is a conversation about scenarios that are much more negative than equity simply taking one for the team.

Dreamland99

What exactly are you worried about?

keith1

It ticked down this morning, both the headline spread and the actual spread.

ZagEgypt

I wish - it’s Fife!

ZagEgypt

There is no chance of me dropping the funding issue until we hear more from the Company, but feel free to filter me (and in any event I am off for a week’s holiday this Saturday).

ZagEgypt

“ Sooner it gets announced the better”

But the first announcement has to be about funding, not the IceMAX.

CoMan

As you say, expected but still to be officially confirmed.

jimtheknow

Which document?

jimtheknow

Yes, I stand by my “picks & shovels” comment. Stena Drilling is part of a group of companies, but its focus is clearly drilling. Can you provide an example of an exploration well that Stena Drilling has farmed into?

jimtheknow

You say in relation to the Bizzells funding:

“I believe the hardest components of this are now complete so i feel the rest will be a formality e.g. signing of contract with Well Services provider.”

but you appear to have overlooked this condition:

“iv) The Group having sufficient cash reserves such that, when aggregated with the total facility funding, would be sufficient to finance the execution of the planned exploration well.”

You cannot ignore the interdependence of the two convertible loan facilities.

willec

What has been common knowledge?

willec

You want to move on from funding issues but then you say “P1 is fully funded and paid for”. If you make a statement like that folk are going to challenge it (or I will if they don’t). The extract from the Annual Report is, after all, quite clear. If you want to say that you hope that P1 will soon be fully funded and paid for or that you are confident that P1 will soon be fully funded and paid for, that is fine. But you cannot simply say that it is fully funded and paid for.

Oops, lost a bit of the final paragraph there but you have seen the final paragraph before.

Private_Investor

You may see where I’m coming from with the full extract, not just the final paragraph (apologies, this is from the Annual Report, not the Interims as previously stated):

“As at 31 December 2019, the Group had entered into an agreement with a consortium of Australian investors for the future access to a convertible loan note facility of up to £10.25 million (approx. $13 million). The agreement stipulates that access to the facility remains conditional on a number of prerequisites having been met before the deadline of 15 February 2020 (extended by mutual agreement to 15 October 2020 following the balance sheet date), the key prerequisites being:
i) The Group having entered into a binding contract for the provision of a drilling rig capable of executing the planned exploration well;
ii) The Group having entered into binding contracts for the provision of integrated well services required for the drilling of the planned exploration well;
iii) The Group having secured all of the necessary permits and approvals from the Government of The Bahamas for the execution of the planned exploration well; and
iv) The Group having sufficient cash reserves such that, when aggregated with the total facility funding, would be sufficient to finance the execution of the planned exploration well.
On 20 February 2020 the Group announced that it had entered into an unconditional convertible loan facility for up to
£8 million (approx. $10.4 million) in funding, with £2.7 million (approx. $3.5 million) (net £2.43 million (approx. $3.2 million)) being immediately drawn down on entry into the facility and the remainder being available in equal instalments in the months of April, May, June and July 2020. On 17 March 2020 the Company expanded the facility to provide an additional
£8 million (approx. $10.4 million) in available funding, bringing the total facility to £16 million (approx. $21 million), with a further immediate drawdown of £2 million (approx. $2.6 million) (net £1.8 million (approx. $2.2 million)) and the remainder being available in equal instalments in the months of May, June and July 2020. On 25 March 2020, the timing of the availability of future tranches for draw down was amended by agreement with the facility provider to November 2020, December 2020, January 2021 and February 2021, commensurate with the delay of the target window for commencing the drilling of the Perseverance #1 well announced on the same date in response to uncertainty surrounding the global impact of the Covid-19 pandemic. The ability of the Group to draw down on this facility on these revised dates is contingent on the Group and the facility providers agreeing to reset certain prerequisite conditions relating to the Company’s market share price which were breached following the global financial market response to the Covid-19 pandemic.
As at 31 December 2019 and the execution date of these financial statements [01/06/20] the Group had no ability to draw d

armatrading

Undoubtedly.

armatrading

The significance of SPT reform for the longer term cannot be underestimated. While WTI remains around $40 it has less significance though.