Member Info for SecretBlueprint

I am looking at a 2017 report.

@pauldrayton

The $8 bit is beyond me since they state money of the day at $35. This is the folly of DCF calculations when there is no inflation of price or cost. NPV 10 is nonsense these days.

Average oil price over the period is tricky since production profile matters to income and future oil price has to factored in also.

I think there is no doubt that the arbitration decision will award sunk costs. The problem is the claim for lost profits. How on earth to calculate that?

Back in 2017, Edison research put the Ombrina Mare life of field costs at $35 a barrel (20 capex and 15 opex). Had the project gone ahead with oil price average around 40 over the past 3 years , that is $5 dollars profit for 20 million barrels or gross $100 million. Take away tax, arbitration legal fees/insurance and risk, and where are we? Under $50 million, I suspect. Useful cash (if it ever turns up) but only 10 cents a share or 8p or so.

Edison reckoned the case was worth 5p a share.

The upside is the new operator entity which might transform things, but I doubt the OM award will do that.

It might still be full of stars but not galaxies.

"Haha nice one! Hope you’re well."

@pauldrayton... Doctors say so..If I make it to 80 I'll send you a telegram!! LOL

@pauldrayton...Sold at £6 . Great trade. Bought a car with it !!

v

I am one that lot!!!.............under deed poll
Oilbrat
Marlonmonkey
Stu255
Desireoil
Fezza
videodawn
Distantvoices
Kamakri
mariner74
gclark25

Who was the guy who kept saying "Oh My God It's Full Of Stars!"

Stu (255) ?

You mean Fezza?

Back in 2015, Chrysaor had only one project, Solan, west of Shetland and it was being run from some rented offices at the Banchory Business Park in Aberdeenshire by a group of ex-Hess, ex-CH4 guys. They had PMO as a farm-in partner to run the development phase as operator . PMO made an unholy mess of the whole thing and quadrupled the costs and the schedule was a year overdue. Chrysaor walked away and left PMO with the thick end of $2 billion in costs for a field which will never recover its development cost. That was the core of PMO's recent debt problem .

Chrysaor reinvented itself by buying up unloved North Sea assets with support from US private capital and became an outstanding operator.

For PMO to become the latest of Chrysaor's acquisitions through a reverse takeover with PMO is simply poetic justice.

Phil Kirk is brilliant, he will make it all work out.

LTT
Chrysaor is not a US company, it is a British company with registered office in London and a large operation office in Aberdeen. It has some US shareholders including Harbour Energy and venture capital.

The enlarged group will see PMO merging with Chrysaor so as to create the largest independent E&P group listed on the London Stock Exchange. It is about Chrysaor bringing cash via its backers and banks to see off the creditor vultures from Hong Kong.

There will be no need of Premier senior debt, export credit finance, or vendor finance. The new company will have all the funds it needs from the RBL funds of 4 billion. The BP deal is dead since it was to funded largely out of a massive equity raise.

Simon

Rockhopper's main asset is oil discovered offshore Falkland Islands a decade ago, but after they discovered it they sold a 60% stake in the discovery to Premier Oil in exchange for a free ride on the cost of development. Premier has been totally unable to fund that obligation because of massive debt and restrictions by its banks. All that has been overturned by the news today about Premier and Chrysaor.

Simon
It's about Premier merging with Chrysaor and wiping out the PMO debt. There is now some possibility of Sea Lion being developed, as to previously no hope at all. Navitas will probably get the sailor's farewell too, leaving a better % for RKH

I think Chevron is far too committed in Argentina to contemplate any link with the Falklands.

Evening Harry

I have just bought a holiday home in what was Westmorland , now Cumbria. Lovely place to get away without any mobile phone signal! Hope you are well . What on earth happened with NUOG no one soll ever know.
Cheers

Hello Harry
Good to see you posting again. You still in Cumbria?

But its not a trade, by definition. Its just an algorithm to set the closing price.

No, sorry, one was the UT which is not a trade but closing price algorithm, and the other was delayed print so could have been a sell .

Come on then Space Hopper. Tell me how International Arbitration Panels work out lost profits. We are all waiting to know. The company's future depends on it...................

Good to see you agree Space Hopper. Do you have first hand experience of arbitration to share ?