Member Info for Yeast-is-Rising

"Rockhopper had a non-binding offer in place to fund both fighting the annulment and enforcing the Award. The Group has instead chosen to use existing resources to fund all legal costs arising from contesting the request by Italy for annulment whilst it explores all acceptable funding possibilities."

I am sure there will be a far better offer on the table, after the anulment of the award is not granted to Italy. Then it is only enforcing the award that counts.

Furthermore I don't think we have to seize all the assets in all the jurisdictions at once. We could start with an asset that is not too expensive to seize and use the money to seize some more.

We are now in the driver seat and can dictate how to mitigate the risk of non-recoupment, since Italy has refused to comply with the Panels instructions. I am looking forward to the reaction of the Committee on Italies blunt refusal :-)

Yeast

And good to see a North American company join the ranks!

Yeast-is-Rising

Two years ago HBR proudly presented around 1 billion 2P and 3P reserves more. Now they are looking for opportunities outside the UK fiscal regime. Still can't believe they withdrew from the Falklands for naught, gave away 1 billion of 2P and 3P reserves and took hundreds of millions of losses.

Thanks for directing us to you earlier post LEEDS5. Here's the text:

Nothing is ever simple is it Annulment procedure has to be undertaken within 120 days of the arbitration decision. The 5 grounds for seeking an annulment are very limited
1Tribunal not properly constituted
2 Manifestly Exceeded its powers
3 Arbitration corrupt
4 tribunal failed to give reasons
5 serious departure from procedure.

The decision was unanimous. The problem is that Italy could play silly buggers and even though their chances of success are very very slim launch an annulment on one of these grounds [ i cannot see which one as decision was overwhelming . Process for annulment does however cause an issue. If an annulment application is made under the ICSID rules a new ad hoc committee is formed to hear that annulment application. If annulment is sought the award is held in abeyance until a decision is made ie stay of execution on the enforcement of the award.

There is however a procedure under the Abitration 2006 rules rule 45 [5] for the respondent in those proceedings ie rhk to seek an expeditious dismissal of patently unmeritorious claims. The tribunal can uphold the respondents claim under 41[5] only if the claim is obviously without legal merit and only if it is manifestly the case. The trouble with all this is that these committees dont do things quickly. An application under 41[5] of the Arbitration rules can take up to 10 months to conclude and for the committee to reject such an application. Until it is decided upon [ the award is technically frozen. If by any chance italy are allowed to proceed to seek an annulment [after the first committee decides on the rule 41[5] then they still have a mountain to climb. The chances of an annulment or partial annulment are very slim. There have been 505 Convention Cases on the Arbitration register only 15 were annulled 5 in full 10 partially.

All this information can be found on the internet under Updated background paper on annulment for Administration court of the icsid may 2016 all 64 pages of it so its all there if you want to read it! The report does say at page32 that annulment is exceptional and narrow circumstantial remedy , the role of the committee is Limited. They can only deal with the 5 factors covering annulment nothing else ie its not reopening the evidence etc .

Given that the decision was unanimous and it took 5 years to get to this decision its unlikely that Italy would be successful but they could try it on. The fees for lodgement seeking annulment are expensive interest will continue to run on the award and costs could be awarded against them for such a claim.

This was pretty obvious indeed. The sp would have been 36p otherwise. Good to see that they already did their homework:

Having anticipated Italy might attempt to annul the Award, Rockhoppper has a non-binding offer in place to fund both fighting the annulment and enforcing the Award if required.

Yeast-is-Rising

When you compare the SP of HBR with SQZ, TLW and ENQ from the last 6 months, they all follow roughly the same path. All of them are 30% down. TLW 5% more and SQZ 5% less.

Compared to a year ago SQZ is 30% up and TLW 30% down and HBR and ENQ haven't changed.

The last year SQZ and BP were pretty much in sync, but 6 months ago something changed. BP is 12.5% up and SQZ and other smaller O&G producing companies are 25%-35% down. Looks like risk-off.

Yeast

But there is this little thing called recession knocking on the door. Markets go down 10%, O&G goes down 20%. Happens all the time.

£5.11 Givingthelowdown
£4.90 Emerald
£4.89 NotMyJob
£4.87 rookie
£4.85 NSS
£4.80 N5HAV
£4.75 peterlowen
£4.70 PT
£4.53 OWLS
£4.30 Yeast

Promises, promises...

Every month they don't pay up it will cost them 800,000 Euro extra. Now there's an incentive to do the right thing.

Yeast-is-Rising

There are 25-30 similar cases waiting in the wings for this award to be announced. If RKH wins they will use the verdict to claim money from the Italian government on the same grounds. It could be they are dragging out the RKH case to discourage other companies and legal hedge funds to file their own case.

Yeast-is-Rising

Well that didn't take long. Where do you find the time to spend so much time on these boards?

I don't doubt that you are a shareholder, but I question your agenda and your group of trolls and aliases. I can imagine though you were unpleasantly surprised about the issuing of extra shares after all your effort to harvest enough percentage support. But you are surely not a victim of this raise as you want us now to believe.

Your posting history tells all that people need to know. And even more obvious was your latest lie about the percentage dilution of the raise, which was adequately exposed by DeusExMachina in his post of Saturday 23.13 hours. Very strange for someone in your line of work to make a mistake with numbers like that.

For anyone interested: https://www.lse.co.uk/profiles/deusexmachina/

Yeast is Rising

SecretBlueprint, indeed the "arguments" of Godders (Glenrothes) and his merry band of trolls with their "hidden" agenda are getting pretty thin. I think they are now only down to the salary of Sam (since Fiona and Stewart are not on the payroll anymore). I am also still waiting for their business plan, but I don't think it has got any further yet than slashing the salary of the CEO.

Of course, they know perfectly well overheads of the company have been hugely slashed in the last 5 years and it was already established on this board that Sam's salary was in line with his peers at AIM companies. Whatever we might think of the salaries of CEOs, but that's another discussion ;-)

What does get to me, and many other genuine shareholders is the constant pounding and deliberate effort to de-humanize the persons they attack. These are tactics from the lowest of the lowest and history has shown these are also very dangerous tactics. But as we know nothing shames these City Boys for making a quick buck and trying to swindle real shareholders out of their money.

This is not the behaviour of a genuine shareholder and serves no purpose to the long-term shareholders who would like to see the company get to FiD and into production to reach its full potential. It is quite clear their objective is very different from that. But I am sure you are well aware of that.

Yeast is Rising

sterlingsilver, the raise is hugely important for all of us real long term shareholders and will see us through the next 1.5 - 2 years. It will be used for:
(a) completion of the Navitas Transaction;
(b) licence extension in the North Falkland Basin; and
(c) outcome of the Ombrina Mare arbitration

It is good to see that the company have slashed their overheads hugely in the last few years. Rockhopper is lean and mean and we have never been better positioned to reap the long, long awaited rewards of our investment. Very pleased we got rid of PMO/Harbour shackles and good to hear that Navitas is going full speed ahead with Sea Lion. I think some people underestimate their willingness and ability to make Sea Lion happen.

I am looking forward to receiving my new shares and the atached warrents with the right until the end of 2023 to buy antother share at only 9 pence. Easy money when the OM award comes in or FiD is achieved.

Yeast is Rising

LTT, PMO had every reason to stall the FID of Sea Lion. Navitas has every reason to speed things up.

Yeast-is-Rising

In short:

- HoT are signed.
- Navitas take over PMO's license and the operatorship
- Navitas gets 6 million from Harbour and takes over the obligations regarding the Temporary Dock Facility.
- RKH gets 8% loan pre FiD and an interest free 2/3 carry post FiD.
- They want renewal of the licence with 2 years from FIG.
- And removal of the obligation to drill two more wells.

Happy Easter,

Yeast-is-Rising (must be the time of year ;-)

These kind of negotiations are very complex. There are a lot of moving parts and with 4 parties there are 6 relations involved between the parties. The complexity of this in negotiations should not be underestimated.

Furthermore there is not only the tidy break-up to be considered between the 4 parties, but also the way forward for the 3 remaining parties. I fully agree with PortStanley, a delay is frustrating but I rather have them getting it right now.

We can conclude that HBR is definitely leaving and NAV is still very much interested and involved (sorry doubters). The main elements of the transaction have all been agreed and after the HoT is signed we will go forward with 3 parties. With only 3 relations involved between the parties and a way forward agreed, we can finaly get a move on. All in all good news.

Yeast-is-Rising

Yes LTT, Harbour can go back on the deal. They still have not ratified it. And I can imagine they rather have another partner who does pay for past incurred development costs, instead of only sorting out their own part of future development costs.

Yeast

Neither do I Ralph2010. It definitely depends on whether they accompany this news with an anouncement of a new and better partner, the news they are in farm-out talks with another 3rd party or the news of the re-start of the Sea Lion project.

Yeast

Well said, LTT. That is definitely why most of us are hanging in there. With Brent way above 70 dollars Sea Lion is very commercial indeed. We are entering the end game. After all these years we have never been closer.

September is going to be very interesting indeed!

Ofcourse now a possible OM award or Sea Lion decission comes closer, more and more BB posts appear trying to convince us the company is rubbish etc. All to put fear and uncertainty in the minds of genuine long term investors and scoop up more cheap shares. Sigh.

Yeast