Member Info for SecretBlueprint

SBP - just for clarification, are you now saying this is offshore Brazil? I’m sure you posted something slightly different previously?
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As Wedgwood Benn famously said, " If the facts change, I can change my mind"

Thank you WOBWAT

I will keep digging. Maybe they will make me an insider too! But I am twice as old as LT, so it may take some time, LOL

Imagine a world where there was a listed company in Brazil, asset rich, but cash poor and emerging from bankruptcy. It has a market cap of £600 million, but only £20 million in cash. This company operates an underperforming offshore oilfield and needs a step change to restore sustainability, perhaps by drilling more wells in better locations, perhaps by improving productivity of the offshore production facilities but they simply cannot afford to do all that. They don’t have the money.

Along comes a bloke from Manchester and says, I can help if you like. There is this company in UK called MFDevCo (Brazil) Holdings Limited. I am its boss. I can ask my friends in Aker and AGR and elsewhere to take a few shares in MBHL and then reverse into your listed company with all this wealth and expertise and sort you out. They won’t want any money upfront, they will be happy with their revenue share from MBHL when more oil is sold.

Then there is China Pacific where I have another deal going, they are part of COSL y'know. They have 8 harsh environment jack up rig drilling facilities and one idle right now that can operate in your water depth. I am also the boss of MFDevCo (China) Facilities Limited which has a lease option on the rig, and Bank of China will extend non-recourse credit facilities to drill 6 wells, to be repaid from a production royalty.

We only want 49% of your company to do this, but you must hand over duty holder responsibility to us via our friends at Aker. Our due diligence and sub surface assessment tells us that we can increase production threefold. So it is win, win all round.

Anyone fit the bill in this imaginary world? Ah yes, Dommo Energia SA. Funny how their share price rocketed by 110% on the same day as the NUOG Beaufort placing
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SeaShark5

I am sorry shiny but the accounts you refer to show that no payment was made by RMRI. An accrual is an unpaid invoice.

RMRI simply does not have the cash. Look at their accounts for the same period.

It about time that RMRI relinquished their 50% share of MFDevCo to NUOG so that those who pay the piper call the tune. NUOG cash calls should benefit NUOG shareholders, not RMRI shareholders. IMO

73k is not the RKH share of phase 1 production matey,

73 k?
Not for Rockhopper matey....

The interviewer asked no questions, only offered topics to talk about.

The interviewee talked a lot but said nothing useful.

I learned more about Hurricane Energy than MFDevCO, and learned nothing at all about NUOG.

...absolutely, difficult, takes a long time, must reduce risk, cannot say anything, AIM rules, when we close a deal... very busy, must go now...

MFDevCo Holdings (Brazil) Limited....

A UK holdings company is a company established for the sole or majority purpose of holding shares in the Groups subsidiary companies incorporated in countries in which the Group is engaged in business activities. The holding company will receive the dividends paid by those subsidiaries and use them to declare a dividend to the ultimate parent.

No farm in of Brazil field equity, IMO, but a stake in a local operator. And as the Chairman said in December, the company is looking at projects where field owners prefer to retain field equity and offer a royalty to the facilitating company.

No sign of a production test yet in NF. Long lead items required as the company told us in the recent vox pop.

The advert in the Penguin News asks for well support and well services to be available in Q1 2020, so that is when the drilling will commence, surely.

No great rush then?

There is no farm in , no farm in of field equity.

Believe Mr Minty he said so!

Stop publishing your imaginings Seadog. You are are dangerous poster , seriously you are.

21 Dec 2017, the Chairman made a public statement in a RNS...

Recent proposals to field owners focus on the provision, in conjunction with members of MFDevCo's consortium, of a turnkey solution for field redevelopment where the services provided to a project are secured against production and production royalties are granted in favour of the facilitating party.  Such proposals are well received by asset owners as they retain field equity, do not need to raise finance themselves and see large valuation increases in their assets.

It is as clear as a bell that royalty is being sought for "facilitating party" ie MFDevCo, not equity.

Seadog, how do you explain that in your 50% farm in scenario ?

It is clear that no flow testing has commenced at Garden Hill because the company said it would announce such an event. The test was said to last 30 to 90 days to gather data for eventual production. We are now 15 days to the expiry of the heads of terms for a farm to PVF. So if all that company information is corrct, then one is entitled to question the health of agrrements in NFL.

"MFDEVCO are continuing their evaluation work under the farm-in agreement, at their sole cost."
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Why is MFDEVCO paying for this, rather than the MFD consortium doing work for future revenue from oil sales?

Because RMRI is actually doing feasibility studies and billing MFDEVCO and NUOG is funding it from placements?

Helvick and Dunmore are old legacy contractual obligations of former ABTOG, and the field operators have shown no desire to progress to a FDP via MFDevCo.

Seadog5

In the most recent annual report, the Chairman said that MFdevCo would seek royalties for its services, not equity, which was attractive to asset owners to retain their full equity. Unless that has changed, equity is not on the table is it?

Harry

Agreed.

Sharelock

An RTO only applies to a corporate action, not a field equity action.

Helvick and Dunmore, MfDevco completed a legacy contractual obligation, but the operator has not asked for a FDP to earn the 40% balance. They have bigger fish to fry at Barryroe, where COSL jumped ship and did their own deal rather than with MFD

Harry

Agreed. Non recourse lending sounds sexy to bb readers but it is expensive unsecured borrowing, in reality. It is corporate pay day lending. Best avoided.