re: Ann: Quarterly Activities and Cash Flow R... Hi striebs,info...

re: Ann: Quarterly Activities and Cash Flow R...
Hi striebs,info from some announcements:
Statoil farmin, up to $210M in three phases to take 65% of PFC’s interest in BKP’s tenements.
Huge Norwegian Company ;market capitalisation of around $75billion and imo unlikely to run out of money for what they have farmed in for - EP127/EP128, excluding PFC’s 100% interest in EP103/EP104 & EPA252.

They have farmed in subject to certain conditions some of which we are not privy to (the last being FIRB approval) and if these conditions are not met then they could elect to withdraw from the programme which is a combination of conventional and unconventional plays I thought. They may be here for the shale, however imo I doubt that they would turn their nose up at a reasonable conventional find, do you?

On completion of phase 1, Statoil has the option to take over as operator for the second and third phases earning the remainder of their 65% (i.e. 25% and 15% respectively).
That’s how I read it and if Statoil remain committed and if PFC are experiencing financial problems as some here have suggested, then perhaps it would be preferable for them to be released from the JV (there could be a termination penalty clause though) and Statoil to take the reins earlier rather than later.

Whatever happens, as I have said, it would need to be soon to take advantage of the prevailing weather conditions this time of the year onwards to give us all a chance of hopefully improving the value of our portfolios.

Regards.