Member Info for Slift

No value $230m bond...
Oh wait, doesn't work like that! My bad :D

Bransonbull,

I wonder if this was part of extra $30m they could borrow, before HUR terminated in October? So likely they do have that option available right now as they are currently using cash to secure decomm.

"As part of the original Lancaster Field Development Plan approval, Hurricane was required to provide security for its decommissioning liability on the Lancaster field on a post-tax basis. As previously disclosed, this has been satisfied by way of a decommissioning bond since February 2019.



In accordance with the terms of the decommissioning bond agreement, and given the fall in oil prices earlier in 2020 and the recent downward revision to the Lancaster field's reserves, the bond provider has requested that the Company provide cash collateral for 100% of the bond's value, as a result of which the Company would derive no benefit from the bond while still paying fees to the bond provider. The decommissioning bond has therefore been terminated by mutual agreement.

Consequently, the Company has reverted to the arrangement in place prior to the decommissioning bond, whereby £16.8 million ($21.7 million) of cash security will be held in trust in order to continue meeting the obligation to provide post-tax security for the estimated cost of decommissioning the production wells, subsea infrastructure and related FPSO costs for the Lancaster Early Production System. Accordingly, $21.7 million of the Company's unrestricted cash has now been reclassified as restricted cash."

If you aren't Jubileey's alt, you must be twins!

Delonex Energy doesn't have any production, try again.

Bullmarket,
I am in agreement with all you say. Except for your opinion on Tullow's business plan.

From the situation Tullow is in, the provided business plan of reinvesting in Ghana is the best plan (and only) going forwards to service debt and come out on top. Even at low prices, Tullow has a high chance to succeed with the plan at the cost of shareholder returns. There are upsides and downsides, but a lot of room for mistakes too.

But for everything to be successful, bondholders and banks need to provide their support as you say. Refinance is currently more important than anything else in the short term.
Whether it involves asset sales, dilution, or other - it will have an impact short term.

Lol $500m free cashflow, are you Jubileey's alt?

Don't lie yellowman!
Dickbat the greatest thinks dilution won't happen, so you must be spreading ponies!

Yo Planty,

"Maris better get a move on and get a rig signed up and finance in place."
Make up your mind. Thought you said rig already signed with Petrofac!

@SiPi,
Why don't you ask IR?

I have removed my post as I don't believe it's sensible that I posted that.
Ask RBL specific questions yourself.

Nice, gratz to you Dickbat.

Now tell us about your position on HUR.

UINOIL,
"surely if the response you received was price sensitive IR would not have disclosed it."
This is exactly it. They have not disclosed it or said that they cannot go into detail.
But yes, I'm reading between lines as to why.

Lol Dickbat,
Shouldn't you have bought oil contracts instead then?!

Delusion. A good answer?

y11-shx guess you don't know how to convert currencies.

"Why? China."

Can't stop the inevitable. China has more manpower than America and Europe combined.
It has the right to be biggest economical power.

As for military.. so far not very hostile on the outside.
But it has some frightening military statistics. However do not pose a risk on the nuclear front (from what is known).

Was a guess, but Google verifies my statement!
£3.50ish apparently.

"I wish it was that price. I wouldn't buy any then..."
Well.. enjoy it whilst you can. At some point in the future, chocolates may easily become that price.

50% of cocoa comes from two african countries.. where the cocoa farmers are heavily underpaid.
All it would take is a revolution or a reform in these countries.

Mondelez still has other cadbury factories elsewhere in Europe.
Poland for example.

Why pay £8+/h for labourers in England when you can pay £3/h in Poland?!

Chocolate is disgustingly cheap and therefore has little margin. If the cocoa trading companies and consumers really wanted, chocolate could be £10-15+/bar.

"environmental problem of disposal of all the batteries they are going to need to fullfill their dreams."
Not just this, but also increased electricity consumption (hence increased gas consumption for electricity production).
It's too soon for every car to be electric - requires more green electricity production.

But having said that, gas fuels are more efficient than liquid fuels..
But in this case, is it really though? You're losing efficiency converting to electric, and then through charging battery.
Double the loss in efficiency.

"There is plenty of oil - its just a matter of how much you want to pay to find and extract it ."
Exactly! The depletion projection is SOLELY based on CURRENT reserves.

If no further investment went into the oil industry worldwide, then the reserves will deplete in 44 years (i.e. the point at which current oil producing fields fully deplete without further investment).

You don't even need to "find" more oil, you could always increase investment to drill more holes to convert existing proven resources in reserves.
If you include existing proven resources in the estimate, then oil depletion will be more like 500+ years at current consumption. WHO KNOWS!

Thommie,

Thanks!
It's not that i've lost optimism, i'm still very optimistic about Tullow's future once it passes this crucial period over the next couple months which I find very unpredictable.

Unpredictable mostly due to the RBL following the drop in production. It's alright with everyone saying "RBL will be okay" or "RBL will pass", but it's more than just "passing".
The deferral of Simba (and hence less than expected production) really influences the future projected reserves compared to that projected at the CMD. The near-term decline in production has been offset by the recent high oil prices - which is fine and isn't the problem here.
The problem here is the projected reserves profile, which directly influences the RBL.

I don't know what the RBL will come in at, Tullow hasn't provided us with ANY details whatsoever regarding the refinance or RBL. But l won't be surprised if the RBL is refinanced on better terms ALONG with the 2022 senior notes (if that is one the option(s) Tullow is looking at).

Things are definitely more positive now than 10 months ago! The difference now is Tullow has options (and time until April 2021) - whether that is to sell assets or other methods.
Also, Tullow got very lucky a year ago. Everything worked in Tullow's favour and for the March 2020 RBL - the hedges and the very successful water injection impemented at Jubilee at the start of the year provided Tullow will sufficient room at the time.

Like you say, it could go either way. I will invest here again following RBL, most likely.

Good luck to you!