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GeoGlobal Resources Inc. Message Board

joyfull888 26 posts  |  Last Activity: 19 hours ago Member since: Jul 25, 1998
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  • joyfull888 joyfull888 19 hours ago Flag

    Agreed...Political expediency is the trigger for this announcement.

  • Reply to

    Indianpetro GGR/GSPC dispute commentary

    by orange4yellow Jul 8, 2014 10:43 AM
    joyfull888 joyfull888 Jul 9, 2014 11:57 AM Flag

    Slip:

    Perhaps you were thinking of the royalty arrangement with the GOI. The royalty arrangement with the Government of India (GOI) might reflect some separation of development phases and production phases as well as between commercial areas within the block. In that respect, the GOI won't allow cost recovery as between commercial areas in a Block. Instead the GOI treats each phase and commercial area as its own accounting silo.

    The accounting between the GOI, the CIA and the other partner will be interesting, particularly if the GOI disallows certain costs.

  • Reply to

    Indianpetro GGR/GSPC dispute commentary

    by orange4yellow Jul 8, 2014 10:43 AM
    joyfull888 joyfull888 Jul 8, 2014 12:14 PM Flag

    Here is the relevant language of the CIA:

    Slip: Here is the relevant language of the CIA. I don't think it contemplates that GGRL must meet cash calls after production starts.

    Carried Working Interest

    The interest retained by GGR in the said exploration block as provided in this agreement shall be a carried working interest, that is to say:

    (a) GSPC covenants and agrees that upon being successful in the development of the said block, GGR shall be entitled to and have earned a 10% carried working interest;

    (b) GSPC shall advance and pay for the joint account of the parties, all costs and expenses which are made by GSPC pursuant to the terms of this agreement including, without in any way whatsoever limiting the generality of the foregoing, all costs and expenses of whatsoever nature or kind for exploration phase carried out on the said block, for development of an operations on the said block for the discovery and recovery of petroleum substances (which for the purposes of this agreement includes all petroleum, natural gas and related hydrocarbons and such other substances as are granted by the said block);

    (c) after deducting all royalties payable under the said block, GSPC shall be entitled to recover all such costs and expenses out of the production if any, from wells drilled by GSPC on the said block pursuant to the terms hereon;

    (d) GGR shall not be entitled to receive any share of production of petroleum substances until GSPC has recovered GGR’s share of the costs and expenses that were paid by GSPC as aforesaid and after such costs and expenses have been recovered, GGR shall be entitled to a 10% interest in all wells drilled on the said block, in all equipment placed in and on the said block and in all petroleum substances produced from wells drilled by GSPC on the said block.

  • joyfull888 joyfull888 Jun 29, 2014 10:06 PM Flag

    GGR's run-in with GSPC-II: Company claims payments held up for no reason

    June 27: GeoGlobal Resources (GGR) has run into trouble with GSPC not just over the KG-OSN-2001/3 block but also with the CB-ONN-2002/3, CB-ONN-2003/2 and the Tarapur block (CB-ON/2).
    In fact company has written a letter to the petroleum ministry complaining that GSPC has not paid up GGR's share of profit petroleum (14%) in Tarapur.
    GGR claims that in terms of the provisions of the PSC, the share of revenue, both in cost petroleum and profit petroleum, havs to be directly remitted to the account of each consortium partner.
    Despite the clear provision, from the date of commercial production, the operator GSPC has asked IOC, the offtaker of crude, not to remit revenues accruing to GGR in violation of the PSC.
    Significantly, GGR has not been made party to any past negotiations and agreements, which the operator GSPC held with IOCL on the issue of revenue sharing and till date, GGR has been unfairly not given its share of revenue.
    GSPC is reported to have admitted that a a net revenue of Rs.19,07 crore upto period of April, 2014 is to be payable to GGR.
    Additionally, although belatedly, the resolution for direct remittance of each party's share of revenue was submitted to IOC on 6th November, 2013, and yet no amount has been remitted to GGR's account even thereafter.

  • June 27: The honeymoon between the GSPC, a state run outfit in Gujarat, and GeoGlobal Resources (GGR) has been over for a very long time.
    The face-off began when GSPC refused to carry GGR's 10% stake -- though there is a specific agreement between the two on this -- GSPC's prolific KG-OSN-2001/3 block.
    It is not known yet what led to the fallout but it happened when Narender Modi was the chief minister.
    The point to note is that Modi is now the Prime Minister and New Delhi is a Darbar where bureaucrats are adept at bending with the wind.
    Even though Modi may or not have sanctioned the face-off between GSPC and GeoGlobal, the latter is likely to find the going difficult in untangling its problems with GSPC.
    So far GSPC's attempt to take over the 10% PI of GeoGlobal Resources (GGR) in the block KG-OSN-2001/3, on the ground that the latter had forfeited its rights after it did not honor cash calls, has stonewalled by the petroleum ministry.
    The interpretation under the Congress lead regime was that GSPC was meant to "carry" GGR`s stake in the block but instead GSPC wanted GGR`s stake to be dubbed as "forfeited".
    The DGH found that such a transfer and "deemed surrendering" of PI by GGR was not in adherence to the PSC and, therefore, a forfeiture was ruled out.
    GSPC, on the other hand, claimed that provisions of the Joint Operating Agreement (JOA) supported the transfer of GGR`s PI to GSPC. But the DGH said that the provisions of the PSC should prevail in this matter.
    Against GSPC`s claims that it was held wrongfully liable to pay for GGR`s share of expenditure in the block, the DGH cited provisions in the PSC which stated that "GSPC shall be additionally liable, jointly and severally, for every obligation of Geo Global Resources (India) Inc. (GGR) till such period the government agrees in writing otherwise".

  • Block CB-ON/2 (Tarapur Block)-I: GSPC fails to make revenue-share payments to GGR; GGR cries foul

    June 27: GeoGlobal Resources, Barbados Inc. (GGR) has claimed that Gujarat State Petroleum Corporation's (GSPC's) failure to make revenue share payments to the company for Block CB-ON/2 (Tarapur Block) is in clear violation of the provisions of the PSC, and has resulted in irreparable damage and losses to the company.
    According to GGR, it has made its mark through introduction of its technical expertise, as a consortium partner with GSPC, in various discoveries in KG-OSN-2001/3, CB-ONN-2002/3, CB-ONN-2003/2 and the Tarapur Block.
    In fact, its technical contribution has apparently been acknowledged through award of several commendations by GSPC and by the Gujarat government, specifically for its innovative geological modeling. Also, during this period, GGR has made investments of $70 million in the oil and gas sector. Since GGR is a public company, the money has essentially been brought in by its investors, mostly from North America.
    The projects have subsequently yielded positive results and commercial discoveries were made, however, GGR claims, that despite its repeated attempts, it has not been paid its share of revenue from the production in Tarapur Block. Notably, GGR has 14% participating interest (PI) in the Tarapur Block and production commenced in May, 2009. The balance PI is held by GSPC (56%) and ONGC (30%).
    As per PSC provisions, GGR has pointed out, that the share of revenue, both in cost as well as profit petroleum must be directly remitted to the account of each consortium partner, which has not been done in this case. GSPC has however, recently acknowledged that a payment of Rs.19.07 crore is due to GGR for the period uptil April, 2014, but no payment yet.

  • joyfull888 by joyfull888 Jun 22, 2014 6:25 PM Flag

    NEW DELHI: Prime Minister Narendra Modi today met Oil Minister Dharmendra Pradhan for the second time in three days, apparently to hammer out an acceptable increase in natural gas prices that could be announced soon.

    After nearly five hours of discussion on issues facing energy sector on Friday, Modi again called a meeting today with Pradhan where Finance Minister Arun Jaitley also joined.

    Sources said at the Friday meeting the gas price revision was flagged as one of the immediate decisions that the new government needs to take to revive investor interest in the stagnant oil and gas sector.

    While the new government is keen to take an early decision on the issue, it may be looking at moderating the proposed increase - from current $ 4.2 per million British thermal unit to $ 8.4, they said adding a new rate may be announced as early as this week.

    Oil and gas producers say the current $ 4.2 per million British thermal unit rate is not enough to help produce from new finds in deepsea, but a new formula that had been approved by the previous government will result in increase in electricity tariff, urea cost, CNG rates and piped cooking gas price.

    Given that inflation is already high and recent rise in food prices in anticipation of below-normal monsoon will add to it, the new government is debating if gas rates should be revised now and add further to inflation, they said.

    Every dollar increase in gas price will lead to Rs 1,370 per ton rise in urea production cost and 45 paise per unit increase in electricity tariff. Besides, it will lead to a minimum of Rs 2.81 per kg increase in CNG price and Rs 1.89 per standard cubic meter hike in piped cooking gas.

    The new government, sources said, is mulling if the Rangarajan formula approved by the previous UPA government for pricing of all domestically produced natural gas, should be tweaked or certain modifications made in its implementation.

  • joyfull888 joyfull888 Jun 15, 2014 9:05 PM Flag

    Thanks...I should have read it more carefully.

  • joyfull888 joyfull888 Jun 14, 2014 9:45 PM Flag

    GGLR not mentioned. I am wondering if GGLR will sell its interest to ILDE in exchange for ILDE's shares in GGLR.

  • Indianpetro
    June 6: The deadline keeps getting postponed and no one really knows when GSPC`s Deen Dayal West (DDW) field will eventually get into production.
    GSPC has always been cagey about disclosing adequate information on the right date.
    The latest missive from the company to the DGH says that "development activities for the field DDW is in the final stage of completion and the installations will be ready for flow of sale gas by June, 2014".
    Everyone is now waiting with bated breath to hear the good news.
    The company was seeking gas from an external source to test fire its systems but that plan has been dropped.
    What is being planned now is the opening of two wells partially and use the gas for commissioning of the two GTGs at PLQP and purge the total system with gas.
    The DGH Has now sent a note to GSPC asking for the following details:
    (a) Methods to be employed for measurement of volumes of petroleum production.
    (b) The point or points at which Petroleum shall be measured and the respective shares allocated to the parties in accordance with the terms of this contract;
    (c) The frequency of inspections and testing of measurement appliances and relevant procedures relating thereto; and
    (d) The consequences of a determination of an error in measurement.
    GSPC has now been asked to submit the Operating Committee approved proposal of the gas measurement, sale and inspection frequency for examination by the regulator and the requisite approval by the Management Committee and the government.

  • Reply to

    pumpers lose

    by orange4yellow Jun 6, 2014 10:24 AM
    joyfull888 joyfull888 Jun 6, 2014 10:40 AM Flag

    I expect Modi will make a personal appearance to turn on the taps for Deen Dayal. So access to his appointment calendar will reveal the date.

    From the Petrowatch headlines he will overhaul the DGH and assume personal control over the Ministry.
    Modi's GSPC had personal experience with these bureaucratic delays that frustrated his own political destiny.
    He knows India has lost a lot of credibility with majors. That will be a big priority of his government.

  • joyfull888 joyfull888 May 28, 2014 12:45 PM Flag

    The DGH feels they can push GGLR around because of its size. If it were BG, they would find a way to reduce the minimum obligations. Unfortunately, what they do to GGLR does set yet another precedent as to the difficulties in completing contracts when permissions are next to impossible to obtain. India lost out on the potential work being done in this relatively unexplored area of the country and punished a foreign company that was trying to invest in that exploration.

    No winners, all losers in this situation.

  • joyfull888 joyfull888 May 27, 2014 4:13 PM Flag

    Suroco Energy has a current powerpoint investor presentation on their website that highlights their blocks in the Putumayo area including Block 7.

  • joyfull888 joyfull888 May 26, 2014 8:56 AM Flag

    The terms of the royalty payable to PCR allows for transportation costs, marketing and handling fees, government royalties and the 1% 'X' factor payment to be deducted from production revenue prior to the royalty being paid. Pursuant to the Agreement, Suroco is liable for funding its 50% interest share of the work program on the PUT-7 Block, effectively on 'ground-floor' terms, with no promote. The work program on the PUT-7 Block is expected to include a 3D seismic program in late 2014 and the drilling of two exploration wells in late 2015. In order to fund the majority of its share of the proposed 2014 seismic program, Suroco completed a US$5 million loan from an existing shareholder which the Corporation expects will be repaid upon completion of its recently announced agreement with Petroamerica Oil Corp. ("Petroamerica") to sell all of the Corporation's issued and outstanding common shares to Petroamerica (see the Corporation's April 28, 2014 news release).

    In connection with the transactions contemplated by the Agreement, application will also be made to the ANH for their approval to transfer the operatorship from PCR to Suroco.

  • Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that further to its May 7, 2014 press release, its wholly owned subsidiary, Suroco Energy SLU, has completed the acquisition of a 50% interest in the Putumayo-7 Block in Colombia (the "PUT-7 Block") from Petrocaribbean Resources Ltd. ("PCR"). Upon approval by the Agencia Nacional de Hidrocarburos of Colombia (the "ANH"), the Corporation's 50% economic interest in the PUT-7 Block will convert into a full 50% undivided working interest.

    On May 6, 2014, the Corporation entered into a definitive agreement (the "Agreement") with PCR and PetroGranada Colombia Limited ("PGC") to acquire a 50% interest in the Putumayo-7 Block in Colombia (the "PUT-7 Block") from PCR. Consideration paid by Suroco under the Agreement was (a) the payment to PCR of US$141,500, representing a portion of the back costs in the PUT-7 Block, and (b) the agreement to pay a 10% royalty to PCR on Suroco's share of production in the PUT-7 Block (as further described below). Pursuant to the Agreement, PCR has also sold a 50% interest in the PUT-7 Block to PGC. In accordance with the Agreement, PGC is providing US$18.6 million of guarantees for the Letters of Credit required by the ANH to guarantee the first phase of the PUT-7 exploration program.

  • Reply to

    Modi wins big

    by slipperydevils May 16, 2014 6:10 AM
    joyfull888 joyfull888 May 19, 2014 9:31 PM Flag

    The biggest difference between Jubilant and GGR is that Jubilant has a 10% interest, does not have a carried interest, or the CIA dispute, but carries considerable debt. Jubilant's capital net worth can be determined based on its price on the LSE. Jubilant does have a few other producing properties but so does GGR. its share price has declined by 90% in the last two years. However if GGLR rises in price so will JUB.L

  • joyfull888 joyfull888 May 11, 2014 7:04 AM Flag

    The terms of the royalty payable to PCR pursuant to the Transaction will allow for transportation costs, marketing and handling fees, government royalties and the 1% 'X' factor payment to be deducted from production revenue prior to the royalty being paid. Pursuant to the Agreement, Suroco would be liable for funding its 50% interest share of the work program on the PUT-7 Block, effectively on 'ground-floor' terms, with no promote. The work program on the Block is expected to include a 3D seismic program in late 2014 and the drilling of two exploration wells in late 2015. In order to fund the majority of its share of the proposed 2014 seismic program, Suroco has completed a US$5 million loan from an existing shareholder which the Corporation expects would be repaid upon completion of its recently announced agreement with Petroamerica Oil Corp. ("Petroamerica") to sell all of the Corporation's issued and outstanding common shares to Petroamerica (see the Corporation's April 28, 2014 news release).

  • Suroco Energy Inc. (TSX VENTURE:SRN) announce that its wholly owned subsidiary, Suroco Energy SLU, has entered into a definitive agreement (the "Agreement") with Petro Caribbean Resources Ltd. ("PCR") and PetroGranada Colombia Limited ("PGC") to acquire a 50% interest in the Putumayo-7 Block in Colombia (the "PUT-7 Block") from PCR. Consideration payable by Suroco under the Agreement is (a) the payment to PCR of US$141,500, representing a portion of the back costs in the PUT-7 Block, and (b) the agreement to pay a 10% royalty to PCR on Suroco's share of production in the PUT-7 Block (as further described below). Pursuant to the Agreement, PCR has also agreed to sell a 50% interest in the PUT-7 Block to PGC. Under the Agreement, PGC will provide US$18.6 million of guarantees for the Letters of Credit required by the Agencia Nacional de Hidrocarburos of Colombia (the "ANH") to guarantee the first phase of the PUT-7 exploration program.

    The transactions contemplated by the Agreement (collectively, the "Transaction") are subject to a number of conditions. The Transaction is expected to close within eight (8) business days of the aforementioned conditions being satisfied. Upon completion of the Transaction, an application will be made to the ANH for their approval to transfer the operatorship for the PUT-7 Block from PCR to Suroco.

    Upon approval by the ANH, the 50% economic interest in the PUT-7 Block that Suroco is to acquire pursuant to the Agreement will convert into a full 50% undivided working interest.

  • Reply to

    Range withdraws from Put-7

    by joyfull888 May 9, 2014 2:49 PM
    joyfull888 joyfull888 May 9, 2014 7:12 PM Flag

    The below is taken from a Message Board post from 2012:

    Economic Participation Agreement:

    Range has entered into an economic participation agreement with Petro Caribbean Resources Limited, a private oil and gas company focussed on the development of petroleum and natural gas reserves in Colombia ("PCR" the official operator of the blocks) that will see the Company earn a 65% economic interest (option to move to 75%) in Blocks PUT-6 and PUT-7 in return for funding (on a cost recoverable basis) the commitments under the Production Sharing Agreement ("PSA") with the National Hydrocarbons Agency of Colombia ("ANH") which include a 350km2 3D seismic programme across the two blocks followed by one exploration well in each block.

    In addition to the completion of the PSA work commitments of the two blocks as mentioned above, the joint venture partners will also (subject to ANH regulatory approval) undertake an extensive review (and possible re-entry) of a Putumayo well that was drilled and subsequently suspended in the mid 1980's on Block PUT-7. The well had a historically reported estimate of 7.9 million barrels of recoverable oil however, in light of the low oil price (approximately $12-15 per barrel) and infrastructure constraints at the time, the well was suspended and has not been re-assessed since. The reservoir modelling and underlying data for this estimate have not yet been reviewed in sufficient detail by Range or its consultants to provide a reserve estimate compliant with the SPE reporting guidelines.

  • LONDON (Alliance News) - Range Resources Ltd Friday said it has made a strategic decision to partially withdraw from Colombian operations and has cancelled its investment obligations at the PUT-7 block in the Putumayo Basin, Colombia.

    The hydrocarbon exploration firm said it will now not be pursuing its option to earn into the PUT-7 site.

    Range Resources said its exit from the site does not affect its position with regards to farm-in arrangements at the PUT-6 block or of the USD3.5 million performance bond which it holds over the PUT-6 site.

    It said it is currently reviewing its options with regards to the PUT-6 site and will update the market shortly.

    The company also announced the issuance of 25 million new shares and 7.5 million unlisted options in order to convert certain debts.

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