Member Info for Surfit

They would look very (more) unprofessional if they "changed their mind": having made the announcement on SL, their investment strategy, having reduced their reserves, investors make decisions based on what they put out.....but as "EIG" (I belive 36%) remain the majority share holder and, as before, I am not sure they EIG/HBR care much for us only themselves and possibley their other (32%) "EIG investors" whom I am sure are informed of intentions a lot more than us lot. Maybe the other ii's feel the same?
Again no RNS' being put out regarding significant changes to stock % holdings so EIG (36 % stuck till end march, not sure if that meant they can not buy either and? and EIG investors 32% (as before no information on if they are bound in until March also??)
Not expecting much clarity in March either. Very disappointed with this company....especially when they are making such money. They need to share buy back and reduce debt.....but as its not a limited company anymore Chryasor /EIG, EIG and investors have to make their money a different way..so is it through loans/ Chryasors /HBR debt or now through dividends?
GLA
Rgds Sft

Good job Murphy did not get that monster built in Italy!!! Or have Dana and Kellas Midstream Limited responsible for the build!!!!
HBR better hope that PMO's contract with the above two is water tight. Share holders WILL be demanding answers!....... although not sure (Understatement) if EIG care about us remaining 5%ers .

"Offshore inspection of Murphy’s giant new platform ahead of first oil"
https://www.offshore-energy.biz/offshore-inspection-of-murphys-giant-new-platform-ahead-of-first-oil/?utm_source=offshoreenergytoday&utm_medium=email&utm_campaign=newsletter_2022-02-10

GLA
Rgds Sft

No of Trades 26
Vol Sold 229,141
Vol Bought 397,053

No big numbers, but a signed contract and conformation RNS will change that.

GLA
Rgds Sft

End of March not far away folks....looking forward to some firm resolves being put out on that respective RNS.
GLA
Rgds Sft

It all good when your a major and have some cash:
"Petrobras and Yinson firm up FPSO deal worth over $5 billion"
It's becoming FPSO ally just up the road from us
https://www.offshore-energy.biz/petrobras-and-yinson-firm-up-fpso-deal-worth-over-5-billion/?utm_source=offshoreenergytoday&utm_medium=email&utm_campaign=newsletter_2022-02-09
Britain: Lions lead by donkeys.
Rgds Sft

Will PoO last? Maybe OPEC+ struggling a bit to obtain production targets and Permian heading into winter chills. So we're probably going up further for a while...
BUT
Will USA oil (Permian+) ever starts getting reckless funding again? My guess is no, big oil moving out and investment funds moved green, however still good to keep an eye on it?
Just speculation/musing only.
Still need +375 on my remaing funds in HBR to get positive. Given up on understanding when this may move back to what it should be...after EIG show their hand post March we will have an inkling?????

https://oilprice.com/Energy/Crude-Oil/The-Market-Is-Ignoring-The-Surge-In-US-Oil-Output.amp.html
GLA
Rgds Sft

Sunday Funday:
It is easy for some to dismiss such opinions but the idea that a group of goverment officials can ever brazenly put a country under control but not only NOT adhere to such controls but laugh and place them selves above such is of course ridiculous? OR that goverment officials that lobby in the UK are ONLY exposed by the press (Owen Paterson still not sure what Geoffrey Cox or JR Mogg are up to OR Cameron, Blair etc etc) and the the poroguing paliment, attempting to change palimentry protections (See Own Patterson again), the allocation and waste of billions on fraudulent businesses (no investigation raised...there is too many leaks else where?) you can see how in quite quick order things can deteriorate.
Happy Sunday all (-:-(
Rgds Sft

CORRECTION
"As expected good interview BY Malcy....."

As expected good interview but Malcy: Was good that AA brought some clarity on the production "blips" and current and future hedging thoughts and fiscal reasonings.
AA bit quiet on the wet results and possible informing on how much it cost them in drilling ($/€) and reserves reduction BUT KINDA offset it well by reinforcing the VERY significant cash /returns positives about closing a deal now as apposed to investing in development and realising it 1.5yrs down the Rd. Sound business strategy.
Reinforcing the points about buying producing assets (hinting at HBR Tolmount issues...mmmm does he see an opertunity later????), interesting about WOS expansion (FID) and exploration (TBC) also (obvious when raised) extending SGP (Shetland Gas Plant) operational life.
Good interview, really good to get the opportunity to listen to such a interesting, young, savey CEO.
Unlike PMO Tony Durrent who sounded good but could not deliver on anything.
Rgds Sft

Hey LTT, that's how I see it. Hence his trip down.
As you say lots of ways of doing it and deferment on taxs post paying back project would be the easiest. FiG could counter with a getting the due tax payment after. It could unlock the project.
Navitas to hold the upper hand, but they must demonstrate they have the cash to do it...they intern will have to give could returns to their backers.
The duration of the extention is not 6 months which I take as a positive. Sam will also be balancing RKHs financial situation....but again the extention time is (imo) by being limited, I belive its a good sign.
Just imagine getting a signed contract and a OM award....by end of March. The contract with a carry would change everything.
GLA.
Rgds Sft

In addition once that contract is signed then we may see further RKH investors step in.
BUT
Despite that signing the elephant in the room will be RKH finances and THAT maybe why Stu left: RKH may need a different type of CFO moving forward?
Once a contract is signed and hopefully a transparent on at that AND a plan for RKH fince moving forward is made clear....then its a more secure investment opportunity for investors with a reasonable risk appetite.
IMO
Rgds Sft

RNS: ".....Harbour Energy plc ("Harbour") and Navitas Petroleum LP ("Navitas") have extended the provisions of the previously signed heads of terms (announced on 8 December 2021) from 31 January 2022 to 31 March 2022, with a view to signing definitive documentation on the transaction by this date."
Just MAYBE: Sam (and FiG) has learnt something over all these years and is ensuring that RKH (and FiG) get a development contract nailed down.
There could be ongoing discussions on tax (maybe deferment) and HBR looking/attempting to claw something back from any potential future production (still depends on the original PMO exit term of course, which may have been weak).
IMO it maybe frustrating but there is a lot, especially after the past experiences, to fine tune. The only one feeling pressure will be RKH due to its lack of financial strength BUT RKH must demonstrate to FiG as the licence holder RKH are still going to be around but not get coerced into another poor contract.
Lots of spinning plates. The RNS is a "time for further negotiation" statement. IMO.
I feel positive on project. GLA.
Rgds Sft

Looking forward to the interview Malky was promoting with AA later this week. Always a good one.
Would like some questions on: missed production target, tax being paid, impact on water (rather than wine), detail on the TotalEnergies deal, cash moving forward. Company has done amazingly well in such a short time frame. Quite phenomenal. Hat's off also for hunting down a good (Kistos affordable) gas asset in these market / times. Would be intresting to know if Kistos new of other companies after that Totals WOS sale.
AA comes across very well in interviews will watch with intrest to see if he brushes over the couple of disappointments or nails them.
SP seems to be getting traction as (more) people realise this is how this company intends to grow and the time frames.
Rgds Sft

You have to feel for the offshore teams: Oim, AA, TA's and supers..they will be feeling the pressure.
The lads will be steadily going through it though....the worse it get the more methodical and safely must proceed.
All down to initial equipment selection/ procurement a year+ ago.
You make some really good point BaysilHope.
Rgds Sft

Good and interesting information BaysilHope. Thank you.
The delay, root causes, costs and production losses will have HBR and Kellas / Dana looking in detail at the contract. It's just too much £$ for parties not too. Doubt there will be much press about it though...bun fight will start once its up and running.
GLA
Rgds Sft

Hi Kign, thank you for the info...all this is costing a lot of money (not including the hugh loss of production!).
Still hoping DANA have some liabilities ( I belive the installation was their responsibility?).
Massive QA disaster from build.
Depending on the PMO/Dana contract of course.
ATB
Regards Sft

My bet is its still topside issues: the vessels infield look to be small supply vessels combined guard vessel (Putfords), I do not think it is fitted with ROVs. No A frame LARs visible.
Any subsea issues and you would see a Dive/ROV intervention vessel infield.
Replacing the topside electrical safety components was /is a significant headache especially when there will be VERY limited bed space available onboard the platform.
Can not find the number it can carry (POB) any where....but looking at the photos it will be low.
Rgds Sft

One other point of interest: IF a windfall tax on the energy sector is introduced how would that affect Kistos balance and plans. Investment in the gas sector MAY give AA some room for offset?
Rgds Sft

Back in 20th July 21: Expectations of drilling campaign duration and expected results:
".....Kistos said Tuesday that the work program would last around four months and would begin the process of converting about 100 million barrels of oil equivalent (gross) of 2C resources into 2P reserves..........Kistos expects the Q10-A gas field to exit 2021 with gross production of more than 2.0 MM Nm3/d (71 MMcf/d or 12,700 boe/d......"
https://www.google.co.uk/amp/s/www.oedigital.com/amp/news/489294-borr-drilling-s-prospector-1-rig-arrives-at-kistos-q10-a-field-in-dutch-north-sea
RNS:
" As well as appraising Q11-B and Q10-Orion, the drilling campaign that commenced in the summer of 2021 was designed to increase output from the producing Q10-A gas field through a series of workovers and the drilling of a sidetrack to the Q10-A04 well. This resulted in a year-end production rate of 10,800 boe/d (gross) versus 7,200 boe/d (gross) when Kistos acquired the asset in May 2021"

ii's may have had higher expectations....thats drilling in exploration/ conformation areas.
Possibley why AA likes to go for producing assets.

The Total WOS is known, with "potential" growth from Glendronach (potential TBC?)
RNS
"...... Kistos will acquire 20% working interests in the producing Laggan, Tormore, Edradour, and Glenlivet gas fields, located offshore the UK West of Shetland......
 In addition, the Acquisition includes a 20% interest in the undeveloped Glendronach gas field...."

The 20% interests will reduce TotalEnergies exposure to existing fields and the development of Glendronach.
TotalEnergies spent a significant sum on repairs to the subsea field umbilicals (power & communications) UTAs connections recently.
It's a decent asset cluster, with opportunities for growth.

AA's 1 million a day and reserves seem to have not hit the mark, any bad news will get some taking profits.
Longterm (imo) looks safe, steady and secure.
Will have to wait for some good and detailed data (March?)
GLA
Rgds Sft

Mirasol, I was hoping that PortStanley might have had some information regarding the recent visit?
Rgds Sft