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Interesting comment Muzzletoff
I expect Premier to be very active in the North Sea, but only where they can be the operators. The asset block on sale by Exxon doesn't fit that mandate.
I suspect that after the sale of Zama and farm down of Sea Lion, Premier will have net debt close to $1.5bn, allowing it room for additional $1bn (or a little more) debt to pick up assets in the North Sea area.
Apache assets in the North Sea might be interesting. I surmise we will hear something on this front shortly
One well can't cost $300 million more.
Nor does increasing reserve estimates - without doing any more work by the way - involve spending more money. So where does the extra capex need come from?
I remember that when RKH and PMO reduced the estimated capex from $1.8bn to $1.5bn - this was a few years ago - they made a big hue and cry about it. Only crying now unfortunately..
Can someone point out what happened to make the capex estimate to first oil go back to $1.8bn from $1.5bn? I remember that in the AGM, Moody spoke about the capex being $1.6bn - I had filed that away as a rounding difference. Seems it was a lot more than that. Capex to first oil estimate up by 20%. That's no minor.
I wonder why the RKH Sea Lion update is so self congratulatory in spite of there being no good news out - unless you count the increase in capex estimate to be good. I guess management need to justify their salaries and nil cost options! Progress being made as it has been since the oil was foundin 2010.
Good post TGF. Comes straight from the heart and lays out all the points clearly and succinctly!
Hats off to you sir!
We are trying to arrange a group of shareholders big enough to make a difference - meaning to throw the board out. Sam and his boy genius Stewart have made a mess of a great asset. Next they will be selling Sea Lion to pay themselves their salaries so they and their employees can 'punch above their weight'. Need to kick them out before they sell us all out
Nigoil,
you are obviously a paid shill to tout the stock. Tough job, I understand, given what pile of dogs**t the stock has been. My contention is that it is the management which has been incompetent and mismanaged what is a very good asset. They have been intent on covering their fat a**es and their fatter paychecks. No concern about the shareholders!
And yes, whoever is paying you is not getting value for money. You don't add any value at all. You either spout positive inanities saying this or that has been covered and is positive or go on ad hominem attacks on those who have something negative to say on the stock. And yes, you do spout some things like FID in 2018 which changed to FID and sanction in 2019 and which it seems, will change yet again.
You add no value at all. Just saying...
Nigoil, listening to you talk, one would think that the company doesn't communicate at all with the big investors. I happen to be one such! Or are you mentioning the toilet because that's where RKH stock is right now? along with the management??
Ah Mogger, finally an admission that you are working for RKH.
As you clearly demonstrate, employees at Rocky are clearly punching above their weight as underling by Sam the bossman at the AGM.
How many firm bids were there for the asset sale in Egypt? I know the answer to that by the way, so don't fib
Mogger, it wasn't an OPEN competitive auction.
In a private conversation regarding the sale, Stewart was harping on (1) discretion (2) "cash is king"
Please don't push your usual positive bs.
By the way Mogger, what are the 12 other employees at RKH doing?
Spec, all the FIG licences expire in 2020/2021. If the Sea Lion license is no extended, you can be sure that the others won't be. In that case, all RKH will be left with is $50mm cash in the bank and 13 employing doing jacks**t.
You can be sure that no one is beating down their doors to get entry into Sea Lion. Interest is minimal. One reason might be that when RKH are kicked out, they will get it on the cheap. RKH are useless - they are not the operators, add no value to the project and after the Falkland licenses expire, what are they worth?? F**kall
Muzz, you are making too much about the connection with BP. Pure happenstance. Don't read anything positive into it. You might as well read positive tidings for RKH in the early morning sunshine today in London
There has been no explanation from the company about the sale. And this, after the company kept reminding everyone how great the Egypt operations were, including during the AGM.
Hence, the only explanation possible is that the assets are sold for cash so that the company doesn't lack the money to pay fat salaries to the management in the lean years ahead! Maybe they are expecting more fallow years ahead
It blows my mind how anyone can write a report on RKH and not mention the haste with which the Egypt assets were sold. Why the haste? Why just one serious bidder? Why the need for discretion? Is there anything that's being hidden by the company? - Nothing. Just that the deal was great.
But then, what would you expect from Edison which openly says that it takes money from the companies for the reports it writes. Would you trust that report? Do you think that if RKH (Moody/Stewart) is the one who approves the report (and the payment to Edison) they will allow anything bad (about them especially) to be in the report? Would you put your money on Edison's 'recommendation'? If you do, you deserve to lose your money.
Trust nothing Edison says. They are just a paid mouthpiece of the company they are pimping
Sorry Mogger, my bad.
One lone Falkland Islander complaining about the delay in drilling for oil in their home after flying all the way to London to make the point!! Bah! It has only been 9 years since they found oil in the FI. Only 9 years, what are they thinking, everyone knows it takes a couple of decades to develop the oil. Isn't that right?
And yes, by the way, one geezer out of 3000 people on that island - I am sure his family and friends support his stand and feelings. That makes a significant part of the population by the way, even if no one else in the islands supports him.
And of course, why should anyone in the FI feel it's been too long to get the oil out. Next decade will be too soon!
And yes, EDISON gets paid by Rocky for the report it writes. I will say it again, EDISON GETS PAID BY RKH TO WRITE REPORT ON IT
Mogger, were you present at the PMO AGM? If you were, you would have noticed an old man with a strange accent complaining about how Premier have sat on all this while on 'their' oil in the Falklands. He didn't seem happy to me! I think all Falkland Islanders are liable to think that way
Sean, the big players don't care much or at least, not enough to devote management time to this mess. Even the biggest institutional investor, Majedie has only a 34.7mm shareholding which equates to £6.6mm. Total assets under management at Majedie is £13bn. So, the RKH position is 0.05% of their AUM. How much time do you think they want to devote to this mess?
Moody can say anything and get away with it to them. They probably don't even have time to meet him, I think. It is that insignificant a position for them. So, no, the big institutional investors don't care. It is up to us, who own substantial shareholdings to do something about this!
Hence my call for support!
Of course Mogger. All oilers have been hurt and no wonder RKH is down today because of the drop in Brent.
Have a think about what will happen to RKH if Brent goes down and stays at $50 and there is a NO from UKEF. And yes, also have a think about the Sea Lion license set to expire in April 2020.
I gather the Falkland Islanders are none too happy about the way the project has progressed. What do you think their state of mind is? Do you think they are going to be generous to these bunch of losers, especially RKH, which forgot (!) to put a time-bound clause to develop the asset when they signed the deal with PMO.
What do you think?
Surfit,
Moody doesn't have any connections in the City. He is a finance guy and as the previous Chairman of RKH said, they promoted a young guy to the top because they thought he will help with his finance connections. Thus far, with many years at the helm, he has given us zilch. His connections have withered if they were ever present but I suspect that they were never that good either. He just used that as a charm to get the CEO job and the 500k salary! Sweet!!
We will have to kick both Moody and Stewart out. They have never acted in the shareholders' best interest till now, just the continuation of their salaries and perks from the company which the shareholders own. You think that will change?
I agree, we need to get more shares to have a say. Carrot, Mogger or anyone else who has substantial shareholdings please respond. If we don't present a united front, the small shareholders are going to be fk*ed. We don't want the company to be run by these twits for their own benefit which it has been till now