Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
BlooBird, both equally good. It's as good an explanation as we can get get to from the information we have. Just need FIG to stop hindering their own O & G industry !
Buzz, this is how I understand it.
Rock has agreed with funder that funder has the right to pursue ROI for award amount and that Rock will transfer to funder the agreed % that they recover from ROI.
FIG though have a claim to Rock assets, so if ROI pay up the award money to Rock, FIG in theory then have a claim on that money and in theory could stop Rock paying funder their %.
FIG I think, just need to agree not to do that.
JEBR, I do not believe the monetisation award is up for negotiation until after the deadline that FIG have to approve.
If the award is upheld in full, the specialist funder stand to gain $150m or more.
If the appeal is upheld, they stand to lose $45m.
The chances favour the former significantly more than the latter.
Thanks Digitalboy1 for sharing SM's reply, and CitizenTS 08:38 post.
I personally feel FIG are total Pen1sHeads if they prioritise the ludicrous idea that Rock owe FIG £59.6 million from a 'irrecoverable carry of approximately US$ 670 million' that Rock did not receive from Premier.
Financially blackmailing Rock, if that is what they are doing, over Rocks monetising the OM award, instead of helping Rock to create their O&G industry, which Sea Lion alone will benefit them with $6Billion, is moronic at best !!
It's good to know why FIG now have a say in the OM award, however it leaves me with the impression FIG are way out of their depth, petty and incredibly short sighted.
Had a reply from SM. I think Zinced came closest to answering but it's apparently a bit complex and involves a conflict. Here's his reply.
There is more complexity than this but at a high level we require FIG consent because the incoming funder wants security over the Award proceeds. That security would then clash with the broader security enjoyed by FIG over all of our assets which came into being at the time of the tax settlement deed many years ago.
Chess, this is my last post on the matter as we seem to be repeating ourselves.
You keep talking about FIG having a say about how Rock 'DISPENCE' funds.
The monetisation of the OM award is about how Rockhopper 'RECIEVE' funds.
FIG having a veto on that seems odd !
Thanks Pre2rcd for that information. SM travelling to the Falklands is more likely to be a good sign that things are progressing, as opposed to a need to sort out a problem.
I fell the disputed tax liability regarding the Rock deal with Premier, unless anyone has information to say otherwise, is a totally unrelated issue to the Rock v Italian dispute. It is a red herring.
I emailed SM earlier asking why FIG have an effective veto on what seems a separate company matter, and unrelated to the Falklands. I will post if I get a reply.
FIG having a say on what Rock do with the cash they have, is one thing.
Having a veto on how Rock obtain cash, from a separate part of Rocks business in the Falklands, seems irregular.
Thanks Zinced and Chess, but both ideas don't seem to fly as again
1. The award to Rock from Italy via ICSID award is wholly independent of Rocks licences in Falklands and any disputed tax liabilities.
2. The monetisation afaik is selling to ''the "Specialist Fund" to monetise its ICSID Award (the "Award"), in relation to the arbitration against the Republic of Italy relating to the Ombrina Mare oil field''.
FIG and the SL asset should not come into it.
In theory, assuming the award is upheld, the Specialist Fund get the chance to collect Euro$250m plus, by paying Rock less than halve that. They should not get some 'security' over Sea Lion in case they fail, as that would be heads they win, tails they don't lose. Seems odd if that is the case.
I'm puzzled as to why FIG have a say in the matter at all??
It is a dispute between Rockhopper and the Italian Gov't.
Monetising the award in the ICSID dispute is a company matter.
Nothing to do with FIG. Seems very odd.
Hi CitizenTS, I can not think of a single good reason for FIG to delay signing off the OM award monetisation deal.
Their only concern should be ensuring SL gets developed in a safe and environmentally friendly way.
Selling 300M bbls at $85/bbl, nets them over $6billion in tax and royalties and gets the Falklands O&G industry going . P1zzing about over a few million in ICSID award is meaningless in comparison. FIG need to give their heads a sever wobble !
Indeed Paul, LTT was bang on the money.
One would hope in this case, seemingly quite clear cut, that it's more a few months at the most. FIG are the disappointment for me atm though.
Latest Development:
April 11, 2024 - April 12, 2024 - The ad hoc Committee holds a hearing on annulment in Madrid.
Thanks as always Mogger. Of interest
'‘....on the financial plan that Navitas put together to deliver Sea Lion’ 5.10 minutes
Begs the question, have Navitas already sorted out the financial aspect??
Chess,
1. I stand by my figures as they are based on current POO and Navitas data.
2. 50,000 bbl/d 17,500bbl/d net to Rock is the initial phase. Navitas stated the long term potential for the Basin could utilise up to 3 FPSOs with a total production of approximately 200,000 bbls/d, 70,000bbl/day net to Rock.
3. Your examples are for UK listed companies, who are subjected to approx 75% 'daylight robbery tax' until 2028 I believe. A socialist Gov will likely increase and extend that tax'
4. Your example Enquest Production 43,000 Market Cap. £325mln. ENQ's SP has halved in the last 2 years btw.
Results for the YE 31 December 2023
'Statutory reported LOSS after tax $30.8 million'.
5. FIG are taking just 35% tax and royalties.
6. Rocks estimated debt of $455m to get to first oil will probably be paid off in 2 years of production
7. Navitas/Rock have $700m of tax to set against taxable income, so presumably just 9% royalty to pay for the first 12.5m bbls produced.
I'm in two minds whether you are a subtle deramper, or just trying to trying to lower expectations.
The maths with POO at perhaps .....$85
The maths with POO at perhaps $95 and life of field costs $25/bbl
50,000bbls x $60 = $3M revenue per day, $1,095M a year
Royalty 9%, Corp Tax 26% = $711M profit
Rock 35% = $249m profit net to Rock per year
Rocks current market cap is just $88m !!
I can't speak as to what interest there will be in Rocks shares, but I am mildly confident the Market Cap will be multiples of the yearly $249M profit, and so will the current share price, regardless of what exchange(s) it is listed on.
I don't know about selling 1 share for 10.26pence, but I could sell over 200,000 shares for over 13p earlier.
The hardest part of owning Rock shares is waiting for news. Navitas are a very tight lipped bunch until they have something worthwhile to say. However I have almost zero doubt SL will get the green light, as Navita's business is to wait until others have done the hard risky expensive work, in Rocks case over a £billion, and then come in to finesse the project to sub $25/bbl life of field costs.
They've spent many $millions on this finesse and have identified available FPSO's, increased 2C resources from 269 to 312 MMbbls are asking for contractors to provide EOI for accommodation and storage facilities etc. I feel confident the future is very profitable for Rocks shareholders, however after 14 years waiting, knowing it's so close to actually happening, is quite a challenge to keep the calm patient persona!
I posted previously that I'd bought 65,000 shares a few weeks back hoping to ride the acquisition pony and it has provided a £3,500 profit so far.
Purely fore the record, I sold 15,000 today to take profits and as I am looking at another, more binary investment to ride.
I think Cnr could easily have a further 10 to 30 pence further to rise, so will try to keep my remaining 50,000.
As a side comment, to echo another, with POG at $2,340 or so, I can not understand by JM wouldn't just buy, or fund the mine to production himself. He is a patient man and this route would bring him many times more millions of profit !
Thanks as always Mogger, and no, I do not believe we have seen that. It seems to be a complimentary EOI after the accommodation EOI request that you also posted. Sea Lion is so going to happen. Keep hold of those shares!!
**** f)All areas must be operational by the third quarter of 2025.
1) Provision of a committed and secure Supply Base, ideally including areas for office space, external deployment and warehouses, some with shelving and temperature controlled.
a)Office space for up to approximately 25 people.
b) External deployment area will require around 80,000 square meters.
c)Total area required for storage around 10,000 square meters
d)Duration of the requirement will be a minimum period of two to six years (with the option of extension in time)
e)All areas need to be dedicated to the sole use of facilities with standard patterns, appropriate drainage and safe perimeters.
f)All areas must be operational by the third quarter of 2025.
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