Member Info for specul8

Beyond the core valuation, which focuses primarily on Barryroe, the analyst's total asset valuation also includes 40p of what’s described as “heavily risked” value for the Dunquin South and Newgrange prospects, located in Ireland’s Atlantic Margin, off the west coast.

For the market’s more speculative punters, it is probably worth noting that on an un-risked basis Midgley values the Barryroe stake at 152p while Dunquin South and Newgrange are ascribed values of 193p and 282p respectively. Mirabaud’s total, un-risked valuation sees the company worth 631.2p.

Providence, meanwhile, retains a material acreage position in the west coast frontier from which further exploration possibilities may be unearthed.

Yet more upside for Providence?
“At under 20p per share, Providence shares are clearly trading at a substantial discount to where we consider fair value,” the analyst said.

“While we expect the shares to trend towards the 100-140p per share mark, realistically we consider this a medium-term objective.

“Accordingly, for now, we are recommending a near-term 50p per share target price, on the basis that we will reconsider as we approach the start of next year’s (Q2) drilling campaign.

“We would add that this target price offers nothing for Providence’s exploration position, which we consider one of the most prospective in the sector. Any progress in readying prospects for drilling could see the share price, and our target price, upgraded accordingly.

i have seen from VOG
clarity of the past and vision of the future, i can see this being a great year going forward for VOG
some value should now be restored to the long term shareholders
onwards and upwards, i would suspect that we will see more interest from investment companies taking a larger percentage of the shares

GLA

how long does VOG have
before they are taken over
or before they reach 50p per share

market cap a couple of of years past over 600million
now 75 million
finished a tough year last year and still made profit before tax of 16 million
dividend 1.42 p
if the dividend is maintained then buying this share now gives 14% return and when profits pick back up then expect 30% annual return
reduction in debt
ok a few headwinds but this is around for the long term
great opportunity to buy
probably will be taken over at this price

drilling about to commence an oil find here would at least double the current share price

US giant Exxon Mobil - a so-called 'supermajor' of the oil industry - has taken a 50pc stake in an Irish exploration prospect due to be drilled next year.

The move is a huge boost for the Irish exploration sector, as an entity with deep pockets commits to a drilling project that will boost the rest of the industry if the result is positive.

Providence Resources has exploration acreage adjacent to the block which is known as the Iolar prospect. The prospect is located off the south-west coast in an area known as the Porcupine Basin.

It is operated by Nexen - another large company owned by Chinese state company Cnooc.

The deal is structured as an equity swap. Exxon is taking 50pc of the prospect in return for giving Nexen 25pc in each of two other Irish prospects.

Nexen will continue to operate the project which is scheduled for drilling in the summer of 2019.

The drill will coincide roughly with Providence's plans to drill at Barryroe, after completing a deal with a Chinese consortium which will see as many as seven wells drilled at the prospect, located off the Cork coast.

Exxon - formerly run by ex-US secretary of state Rex Tillerson - teamed up with Providence a number of years ago to drill at an area known as Dunquin North, but no commercially viable oil or gas was recovered. Their decision to try again at Iolar will be seen as encouraging for the Irish exploration sector.

The oil price has risen from $45 a barrel in June 2017 to over $85 a barrel at recent highs. Oil markets look "adequately supplied for now" after a big production increase in the last six months, but the industry is coming under strain, the International Energy Agency said on Friday.

US sanctions on Iranian oil exports could reduce market supply - putting upward pressure on the oil price and encouraging more exploration activity.

remier will make available to Rockhopper an optional standby financing facility. In the event that Rockhopper chooses to draw down on this facility, Premier will take an enhanced share of entitlement production and cash flows from the Sea Lion and related fields. The enhanced share will continue until Premier has realised a 15 per cent. post tax Internal Rate of Return ("IRR") on its investment (defined as Premier's working interest share of capital expenditure plus the amount of the drawn standby financing facility). Thereafter, cash flows will be shared pro-rata to equity interests. If costs exceed the approved development project budget by more than 10 per cent., the entitlement production share due to Premier will be adjusted to deliver a reduced 12 per cent. IRR on incremental funds drawn by Rockhopper from the standby financing facility to fund the project overrun costs.



Information on Premier



Premier has interests in eight countries around the world and operates in three core areas: the North Sea, Asia and Middle East/Africa/Pakistan. As at 31 December 2011, Premier had net 2P reserves and a 2C resource base of 527 mmboe. Average production net to Premier for 2011 was 40,420 boepd with a medium term net production target of 100,000 boepd.



Premier is a world-class operator with significant experience with FPSO developments including the producing Chim Sáo field, located offshore Vietnam, West Natuna in Indonesia, as well as the Balmoral development in the North Sea.



Completion and Approvals



The proposed acquisition is expected to complete in September 2012 after satisfaction of customary closing conditions (including the approval of the Falkland Islands Government).



The Transaction is subject to capital gains tax in the Falkland Islands.



Sam Moody, Chief Executive of Rockhopper, commented:



"I am delighted that we have been able to secure such a high quality partner for our work in moving the Sea Lion development forward - Premier have an outstanding track record in developing and running producing assets and also have significant international experience. This is an excellent transaction for the company and its shareholders. It helps crystallise the value of our discoveries in the North Falkland Basin area centred on the Sea Lion field, as well as providing the funds to examine further the remaining potential of our acreage in the region. The transaction also presents the opportunity to pursue other exploration prospects in countries where there are geological similarities to the Falkland Islands and where our sub-surface skill sets can potentially create additional value. We are very much looking forward to beginning our work with Premier."



Presentation and Conference Call

· Premier has agreed to farm into 60 per cent. of Rockhopper's interests in its licences (being PL023, PL024, PL032, PL033, PL003 and PL004, thereafter the "Licences") in the North Falkland Basin including the Sea Lion development and adjacent discoveries, Casper and Casper South ("Development Area")



· Premier will assume operatorship of the Sea Lion development, located in licences PL032 and PL004b



· Premier has agreed to pay Rockhopper an upfront cash consideration of US$231 million, payable on completion of the Transaction ("Completion")



· Premier has committed to carry Rockhopper's portion of development costs in relation to the Development Area up to the first US$1.8 billion of gross capital expenditure (US$722 million net to Rockhopper) (the "Development Carry")



· Rockhopper has the option to fund any further development costs beyond the Development Carry through an arrangement with Premier described below (the "Standby Financing Arrangement"). Alternatively, Rockhopper can independently source third party financing for this portion of development costs if it so chooses



· Premier and Rockhopper have agreed to undertake a front end engineering and design study to optimise the Development Area, targeting submission of the final development plan by H1 2014 with a view to bringing the Development Area onstream in H1 2017



· On Completion, Premier and Rockhopper will also enter into the AMI agreement in relation to future joint exploration activities in the North Falkland Basin and certain areas of offshore Southern Africa containing analogous plays to Sea Lion (Namibia, South Africa and Southern Mozambique)



· Premier has agreed to fund the first US$120 million gross expenditure (US$48 million net to Rockhopper) related to further exploration activities on the Licences or in the AMI area (the "Exploration Carry")



· Rockhopper to take sub-surface lead on all exploration activities in the AMI area, thereby leveraging the Company's existing knowledge and expertise gained in the North Falkland Basin



Details of the Standby Financing Arrangement

see below the deal struck in 2012
Rockhopper Exploration plc
("Rockhopper" or the "Company")

Farm-out agreement signed with Premier Oil plc

Rockhopper, the North Falkland Basin oil and gas company, is pleased to announce that it has entered into a conditional farm-out agreement with Premier Oil plc ("Premier"), regarding the Company's interests in its petroleum licences in the North Falkland Basin (the "Transaction").



Highlights of the Transaction



· Premier to acquire 60 per cent. of Rockhopper's interests in its North Falkland Basin licences



o US$231 million upfront cash payment on completion of transaction



o US$722 million Sea Lion development carry (net to Rockhopper)



o US$48 million exploration carry (net to Rockhopper)



· Premier to provide standby financing arrangement at Rockhopper's election to cover any additional development capex beyond the development carry of US$722 million



· Premier to become operator of the Sea Lion development



· Area of Mutual Interest ("AMI") for future co-operation in the North Falkland Basin and analogous plays in South Africa, Namibia and Southern Mozambique



· Rockhopper to take sub-surface lead on exploration activities



The Rockhopper Board believes the Transaction with Premier delivers on its key objectives:



· Rockhopper will be fully funded on its share of the Sea Lion development through the development carry and standby financing arrangement provided by Premier - with the option to secure third party financing in place of the standby financing arrangement, if Rockhopper so chooses



· Rockhopper gains an aligned and experienced partner and operator in Premier with significant experience in analogous operating environments and developments utilising FPSOs



· Rockhopper retains significant exposure to the upside in the North Falkland Basin through its residual 40 per cent. interest



· Significant exploration upside through the AMI together with the exploration carry of US$120 million (US$48 million net to Rockhopper)



· Strong balance sheet to actively pursue future growth opportunities



Details of the Transaction



· Premier has agreed to farm into 60 per cent. of Rockhopper's interests in its licences (being PL023, PL024, PL032, PL033, PL003 and PL004, thereafter the "Licences") in the North Falkland Basin including the Sea Lion development and adjacent discoveries, Casper and Casper South ("Development Area")



· Premier will assume operatorship of the Sea Lion development, located in licences PL032 and PL004b



· Premier has agreed to pay Rockhopper an upfront cash consideration of US$231 million, payable on completion of the Transaction ("Completion")



· Premier has committed to carry Rockhopper's portion of development costs in relation to the Development Area up to the first US$1.8 billion o

the board have just taken over and have a load of cash to survive, they have stated that they are reducing the monthly wage bill reducing the expenditure on projects and chasing ENEO for an agreement to be paid on a regular basis
as far as big sells are concerned then the volume has been drying up due to lack of interest this share
I believe that the new board will soon have the payment system resolved with ENEO and identify where to grow the business in the most cost effective manner
at a market cap of 30 million then VOG is seriously under valued, i would like to see it around 120 million market cap which would be fair value

gla

extract from the last news, would be great to announce the funding is secure rapid return to high 40s upward and onwards

Sea Lion Phase 1 development - securing senior debt funding represents last major milestone to achievement of FID

· Front End Engineering and Design completed in Q1 2019

· Process to progress contractor LOIs to full agreements well advanced

· Field Development Plan and Environmental Impact Statement substantially agreed with the Falkland Islands Government - final approval expected at sanction

· Good progress made with the Falkland Islands Government on Sea Lion royalty and fiscal terms

· Financing structure progressed - extensive due diligence and assurance process underway

· Vendor financing - contractors have agreed to provide up to US$400 million of funding for the project

· Project momentum building with budget approved in Q3 2018 to increase activity and expand the Operator's project development team

News due this month, either way the news will be good, if the Government failed to grant the survey and the production licence then PVR would be entitled to claim for lost future profits under the European law, i would guess that the value would be around £2 Billion
Happy days either way for the shareholders

GLA

you need an office in London to be listed on the AIM, being a listed company has many advantages unless you are supported by an investment house where they demand a return of 15% YOY
this will not move from the AIM, also I like the the new management, they seem to have the finger on the pulse, i think they are getting to the point of understanding all the possibilities for future growth,
the key question is how did VOG manage to get these experienced guys, they are to get investors a good return on the money the next few months and years will be very interesting

when they look into selling the West med and what ever happened to Kazakhstan

I was expecting results to published along with an update on any progress around now does anyone have an indication of when we will receive this
Also was thinking if the oil companies are not allowed to drill for oil off Ireland then they would all have the right to sue Ireland for claim for investors, I think the Goverment would go Bust

then the new directors must be precise and give positive spin on the company going forward, we have all been stung by Foo in the past, however he has delivered a solid company in a region renowned for envelopes stuffed with cash to get the work completed, he has offered Douala a low cost greener option for energy and increased the reserves fair enough through dilution, i believe there may be some dilution in the future but the foundations of this company are excellent.
PS i lost just under 10 k with this company a few years back and I am now reinvested due to the basic fundamentals, yes in Cameroon it will always have a risk element but there is currently a great opportunity to make some money

26/12 /2010 peaked at £6 which would make the market cap at 600 million going by the assets and future production as well as a lift in oil prices then I can see this target being breached in the next 3 years

GLA

this will hit 1p faster than than a tesla 0-60

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s.

Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export.

China, however, is making a strategic push into FLNG, aiming to become the lowest cost seller of the complex floating plants and lead the global rollout of a technique that remains in its infancy, with only one project in commercial production so far.

The country needs gas as a cleaner alternative to coal under a drive to improve air quality in its cities, and has already lent $12 billion to Russia's conventional Yamal LNG project in the Arctic as U.S. sanctions scared away Western banks.

It has also lent or committed almost $4 billion to three FLNG schemes off the African coast. In two more African projects costing a total of $3 billion (2.36 billion pounds), it plans not only to provide the funding, but also build the production platforms.

"We see a real commitment to FLNG in China both from the construction side and from the LNG consumption side where decreasing costs mean potentially lower cost LNG," said Steve Lowden, chairman of Jersey-based NewAge which is planning FLNG projects off Congo Republic and Cameroon.

China already dominates the global market for solar panels and is a major supplier of coal-fired power plants, aided by easy money, cheaper labour and state support.

Now, with Beijing pushing President Xi Jinping's "Belt and Road" vision of expanding trade links between Asia, Africa and Europe, it is turning to FLNG to bring high technology work to its shipyards and create jobs - a strategic priority.

FLNG is also attractive to resource-rich but debt-burdened African countries. Projects can sail into place, drop anchor, and begin exporting for much less than the cost of onshore plants, the price of which quadrupled in the decade to 2013.

That, at least, is the theory. The reality is that the technology remains complex. Royal Dutch Shell's (RDSa.L) mammoth Prelude FLNG plant, for example will be aboard the world's biggest floating structure, but must squeeze the equipment into a quarter of the space occupied by an LNG plant on dry land.

Wave motion and ocean currents add to the difficulties.

The $12.6 billion Prelude project, which is due to start operating off Australia in 2018, is typical of those conceived during the era of high energy prices. However, spot LNG prices have fallen 70 percent since early 2014 and are expected to remain under pressure or drop further due to extra supply from new conventional plants in Australia and the United States.

Despite this, some producers and buyers are ba

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s.

Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export.

China, however, is making a strategic push into FLNG, aiming to become the lowest cost seller of the complex floating plants and lead the global rollout of a technique that remains in its infancy, with only one project in commercial production so far.

The country needs gas as a cleaner alternative to coal under a drive to improve air quality in its cities, and has already lent $12 billion to Russia's conventional Yamal LNG project in the Arctic as U.S. sanctions scared away Western banks.

It has also lent or committed almost $4 billion to three FLNG schemes off the African coast. In two more African projects costing a total of $3 billion (2.36 billion pounds), it plans not only to provide the funding, but also build the production platforms.

"We see a real commitment to FLNG in China both from the construction side and from the LNG consumption side where decreasing costs mean potentially lower cost LNG," said Steve Lowden, chairman of Jersey-based NewAge which is planning FLNG projects off Congo Republic and Cameroon.

China already dominates the global market for solar panels and is a major supplier of coal-fired power plants, aided by easy money, cheaper labour and state support.

Now, with Beijing pushing President Xi Jinping's "Belt and Road" vision of expanding trade links between Asia, Africa and Europe, it is turning to FLNG to bring high technology work to its shipyards and create jobs - a strategic priority.

FLNG is also attractive to resource-rich but debt-burdened African countries. Projects can sail into place, drop anchor, and begin exporting for much less than the cost of onshore plants, the price of which quadrupled in the decade to 2013.

That, at least, is the theory. The reality is that the technology remains complex. Royal Dutch Shell's (RDSa.L) mammoth Prelude FLNG plant, for example will be aboard the world's biggest floating structure, but must squeeze the equipment into a quarter of the space occupied by an LNG plant on dry land.

Wave motion and ocean currents add to the difficulties.

The $12.6 billion Prelude project, which is due to start operating off Australia in 2018, is typical of those conceived during the era of high energy prices. However, spot LNG prices have fallen 70 percent since early 2014 and are expected to remain under pressure or drop further due to extra supply from new conventional plants in Australia and the United States.

Despite this, some producers and buyers are ba

rig based in Cameroon on the Newage oil website

In construction and engineering, a temporary binding or non-binding arrangement entered into while the parties conclude formal building contract negotiations. Letters of intent may be used when the parties need to start to procure materials, commence site preparations or start the works before agreement of all the formal contract terms (or the formal contract price). See Practice note,

in my company we will start the process to procure long lead items or the forgings based on a LOI this ensures that we can meet the delivery the customers are looking for
In this instance, this will be classed as a fast track project probably looking at first oil around jan/feb 2020
when this project begins we will see a major uplift in the share price i wouldn't be surprised if RKH was bought out beforehand though
This project transforms the wealth of the falklands and will open the door for other companies to start drilling down there, there could be as much oil as in the north sea and this is just beginning