So, after reaching out to the co I was lucky enough to catch up with Damon N and Jason from JP Equity Partners (they did the IPO and then the entitlement offer for FDR). They happened to be in the area with some free time so they very generously gave me the chance for a chat. I have summarised my recollection below. Please note this is my interpretation of the chat so definitely don’t make any investment decisions based on this.
FPSO- well into commercial discussions, not Glas Dowr is my impression
Finance- many options on the table, could be a mix of:
*Nordic bond
*deferred payment to contractors to come out of oil sales instead of CAPEX
*possible that FPSO operator takes equity and/or farms in = potential for reduced CAPEX
*Timor Gap increase their %
Timor Gap have taken a financial interest in every offshore drill so far, good chance they will increase their stake here IMO based on them doing so for Sunda Energy (formerly Baron Oil) recently for appraisal of Chuditch
CAPEX amount (~US$250m was my guess) across the project, taking measures to reduce this through the financing arrangements above
Been busy meeting brokers and investors in Sydney yesterday and Melbourne today and getting good interest
FID accelerated (as well as FEED) thanks to SLB alliance, estimated at mid next year and first oil mid-2027 (my thoughts, and timelines can slip obviously)
SLB are paying more than half of the costs with no guarantee of winning the ongoing work (this was not really promoted in the big announcement), but seems likely that one provider for everything is preferred.
Very keen to turn the 2C into 2P as this will clearly boost market value
TL government are fully supportive as the oil industry is their main source of revenue and this is almost certainly the next project to be developed.
Thanks to Damon for his time. He seems very positive and excited by the project, as you would be given the opportunity and the economics here.
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