thoughts on gpc / galoc, page-6

Salty

Copy of email from Jill Thomas recieved yesterday evening:-

Thank you for your inquiry. The total GPC debt was US$65 million; approx 32% of that was Otto’s share to pay back (based on 31.38% shareholding of the field Operator, Galoc Production Company WLL (GPC)) Otto had cash on deposit to cover a portion of this. Otto’s remaining debt is now just under US$10 million. We are not being charged during the down time. The only costs are the general GPC overheads until production recommences. 100% of the repair costs are being picked up by Rubicon, owner and operator of the FPSO vessel.

Trust this answers your questions. Thank you for your ongoing support of Otto Energy.

Regards,

Jill Thomas


Corporate & Investor Relations Manager

Otto Energy Limited

There seems to be a discrepancy of around $1 mill on Otto's debt when compared to the figure I was given by Alex Parkes.

However, if you agree that the initial total GPC debt was US$65 million, then work it back. Otto had a refundable cash payment of US$6.3 million against this. Vitol's deposit would have been US$14 on a pro rata basis. I do not know for certain Vitol had to make a cash deposit, but I cannot see a reason why they shouldn't have.

Two lots of oil totaling 600,000 barrels have definately been delivered. Probably at an average price between US$45 -40 a barrel. A partial offtake from production between (4/12 and 14/12)may also have been delivered. At least 100,000 barrels should have been produced in those few days.
To my knowledge cost recovery is 70% of gross income. I have seen reference to 100% in the first six months. Either one would allow full payment of the operating margin towards debt. So 600,000 barrels (two offtakes) would contribute $US15-18 mill.
Net approx debt $65 less deposits $20 mill and oil income $15-18 mill. I make that net debt US$27-30 mill.

Admit the are one or two assumptions eg Vitol deposit. The scheme may have been different for the due to their size. Net result the same though.

I'm 100% certain about the info on BHP deal.

From my last post. "This is my interpretation of the conversation, so I suggest that if anyone has any queries that they ring Alex."

For your info tel no 08 6467 8800. If your going to record the conversation I suggest you inform the person whom you are talking to, don't want you breaking the law. You could email Jill Thomas at [email protected] and ask her to confirm the situation. You could then post the reply on Hotcopper. Surely that would be better that writing "imo" all the time ?

Cheers