Posted by Malcolm Graham-Wood - Malcy's Blog
A very quiet day, the Peshmerga have retreated to the 2003 borders apparently which eased upwards pressure but after the close the API stats showed a big draw which if confirmed by the API tonight will maintain upward pressure.
RockRose has announced another deal this morning confirming my suspicions I wrote about last time. This deal is of a significantly bigger magnitude and regrettably is classed as n RTO by the panel and therefore requires suspension. On that point and before the inevitable grumbles, investors in RRE have always been aware of AA's plans to buy a substantial portfolio of assets and this is part of the risk that goes with the territory. Having spoken to the man himself he is as confident that one can be that the shares should be restored before Christmas.
On the facts available it is clear that this is a potentially company making deal that puts RRE well ahead of its target of production, by the end of next year a conservative 8/- b/d. The assets that have been bought from Idemitsu comprise WI's in 10 fields, employees and a London office which puts RRE into a bigger bracket, as promised at the time of the original raise. The deal is funded out of existing facilities and cash resources and I suspect a financed decommissioning package which we should discover when the readmission document and CPR are published. As a result of this it is impossible at the moment to work out a cost per barrel of the acquisition but I think it might turn out to be very attractive. More will be revealed when the aforementioned documents are published but I would guess that the irritation of suspension will be more than repaid by the reward when the quote is restored…
Independent Oil & Gas
IOG has announced a Letter of Intent with ODE for technical support om Blythe and the Vulcan satellites ahead of and post the FID. Pre-FID costs are fully deferred and pre first gas costs are 50% deferred until that point. This obviously ‘reduces funding commitments' although that statement might read as ‘reschedules' funding commitments as they aren't going away altogether. The good news is that London Oil & Gas have kept the faith in the company and are bit by bit having their patience rewarded. The outlook for IOG is beginning to look a lot better and I suspect that the inconsistencies of the past may be put behind them as it has been a long old haul as the faithful can testify.
This week on the Podcast I look at the options available to JOG, fittingly look at IOG, pre this announcement, SDX on another find in Africa, President on first Oil from Puesto Flores and the Schroders investment and raise at Columbus.
Back to the Champions League and it was a good night for the English clubs with wins for the Noisy Neighbours and the HubCap Stealers and a very creditable draw by Spurs at the Bernabéu.
Tonight the Red Devils travel to Benfica with all the history that fixture brings, Celtic are at Bayern Munich and Chelski host Roma.
We have had the second managerial departure of the season as Craig Shakespeare departs from the Foxes not so much the traditional bottle of whisky and a revolver more a case of is this a dagger I see before me, its handle towards my hand…..
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