Just caught the archive, agree completely. Almost everything he said about their model makes PD a perfect fit. Best rock Edmiston has ever seen, risk creating a massive discount to entry, reinvesting in the assets and a long term view. Just what PdVSA is looking for in a new partner also. I think the PD deal is as good as done.
The story is that all the profits go back into the business and some do. They manage to keep six rigs drilling and they are completing infrastructure. But HNR isn't getting anything under the deal they have with +P other than more incentive for +P to finish the deal. They will be accounting for the percentage they bought in Jan. and have rights to the declared divvy but until they close the deal PdVSA gets it all. Yet another reason for them to drag their feet.
Apparently they managed to get an EG oil minister sacked. EGY wants to develop Venus before drilling an exploration well. The minister disagreed, was ousted and they will do Venus first. Steve said this during the CC.
re EnerCom, +P doesn't generally do these and what else do they have to talk about? Would they come to explain what they're up to in the Peruvian sanctuary? That being expansion that has never been sanctioned by the indigenous people? Those people having recently shut down production claiming pollution in rivers and streams and murder. +Ps response was the plan to expand. They have a lid on that information and wont be flapping up flames by bragging about it. Not much of a presentation if all they can do is list their few insignificant operations without detail on Peru and a no comment on PD. Imo they wouldn't even show up for that and will look silly if they do. Even if the strategy is just to meet with HNR behind the scenes, they'll have to say something about progress. The way that statement might be worded could cause a bump and maybe a big bump.
They signed a term sheet 7/31 on a revised PSC. All that's further required is the new paperwork and signatures. Total would be in DC for the conference also. The news would be worth 10% imo.
Harvests experience offshore is two for two. Edmiston ran a major offshore operation when he was with Conoco/Phillips. Not a guy to be underestimated. Looks like the license doesn't include the out board Dentale structures, makes sense since they don't have a discovery yet. Harvest could farm out a piece of this license at a price Vaalco has budgeted. If they really believe in the Dentale they might JV to speed into production and drill the Dentale independently. They did a similar thing in Uinta.
Two for four by my count. They hit a nice one SE and the onshore strike that made Total jump. & two misses the last one being a strategic effort to #$%$ in-board and syn-rift vis-a-vis what HNR is looking at along that trend. I think they knew it wasn't going to produce much if any but if the answer was any it had major implications on the joint 3D.
Yes, $137mm was Vitols offer. Value in EGYs expertise and infrastructure if they could simply float it next door.
EGY has been interested in Dassafu for a few years but they may have moved on. Only if HNRs PD deal falls through will EGY get a bargain there. Still a possibility but even then $100mm won't buy it. Unless HNR opts to farm-out EGY likely can't afford to get in.
They'll announce at some point imo. Playing interests against interests in West Africa. Sonangol made an issue of offering deals to service providers a few months back. It's not a deep water rig. Could be just coincidence but seems to fit.
" KCA Deutag has won a two-year, $170-million contract from Sonangol for use of the jackup Ben Rinnes offshore Angola.
Under the agreement, which carries a two-year extension option, KCA Deutag’s offshore division will provide drilling and completion services in various Angolan offshore locations, employing around 100 personnel, most of which will be Angolan nationals."
This is the rig Vaalco has been using in Gabon.
Exactly right SS, Ed said it last CC. They're moving ahead in Gabon outside the PD deal. This could be a signal that they've got a farm-out deal. For sure it's the potential funding the gov of Gabon wants to see to issue a production contract which is what HNR needs to move reserves to P2 which is what banks loan on.