Share
1,144 Posts.
lightbulb Created with Sketch. 171
clock Created with Sketch. 16/05/19
08:28
Share
Originally posted by brucesterfer:
↑
1. Update on gas marketing for 2020 and beyond. This topic is obviously commercially sensitive so can't expect too much until it's completed. 2. PV13 tie in update. What remedies are being planned (incl. timing and capex) due to PV1 restrictions.[Webinar: Tie in to happen this month (has been slow due to regulatory approval) and cautiously on reduced choke to maximise recoverable reserves. Estimated capex to complete PV13 was referenced in his GAP question, where he disclosed that the remaining GAP costs were c$6m and this was primarily associated with PV13 tie in. No comments on remedies other than the self sustaining capex of c$10m per year to maintain production levels (on average)]. 3. Update on financing.[Webinar: Financing well advanced, narrowed down to 4 banks. Will select and work with 1 bank to move forward into full due diligence shortly]. [Webinar: No mention of divestment, but did note that significant cost to bring back online.] [Webinar: c$6m, primarily related to the PV13 tie-in.] [Webinar: Near the beginning of the presentation, Leon answered this well saying there is no penalties or interest with this and would probably be paid back at the end production reserves. He said he was surprised that MQ didn't manage to market their gas, so they were able to take advantage of it to meet their firm commitments. Near the end of the presentation, a question was asked if the production imbalance was held on balance sheet - he said yes, and implied it was intertwined with the MQ presale gas? I need to double check this but makes sense given the volume we're talking about]. There were a number of other good points raised, such as self-sustaining capex (c$10m per year), further Mereenie production rate increases, normalised cashflow numbers, expected debt service levels on new financing, targeted margin increases through cost side efficiencies etc. I'll do a separate post on those....on the webinar thread later.
Expand
Indicative proposals from 3 banks are being reviewed. Surprise is being investigated for recovery possibilities. There are a number of leads in the Surprise area. Decision may be more involved than simply rehabilitating existing well ?
