Parkmead Share Discussion Threads

[cyan] 28/9/2019 16:40

Good afternoon 11_percent

On 31. 12 2018 PMG had £23.6million

In January 2019 £6.2 million was added from the Faroe sale;

Total cash then was £29.8m

We have to mention the £3.6 m Bank of Scotland secured loans on Pitreadie Farm Ltd assets which were taken out in March 2018.

So; £3.6m to pay in 3.5 years; unless sold before hand; am thinking about that mansion.

I wonder what the interest rate is on those loans?

[cyan] 28/9/2019 16:16

Athena and its possible future is a real mystery to me.

Clearly , decommisioning started and here is a 2016 announcement of a contract;



Here is the whole approved decommissioning document;



A general description of whats involved in decommissioning;

"t 5. Well plugging and abandonment
This is the main element of the decommissioning process and is the largest cost of the project. "



Refering back to this document;



Extract;

.7 lndustriallmplications The work to decommission the Athena Field installations and pipelines will be largely completed from a Diving Support Vessel (DSV)/ Construction Support Vessel (CSV) or a crane barge. Well plug and abandonment operations will be completed using a drilling rig......

ATHENA has SIX wells.

I can not find anything to suggest a P & A rig contract has been signed.

This would be the most expensive part.

PMG refers to ATHENA as “shut in” and the talks of hopes for redevelopment.

I guess that is one way of keeping a nasty liability at bay.

I crunched some numbers , years ago, and estimated that when ATHENA was previously producing, costs were well over $60 per barrel using the FPSO; hence why it was shut down.

I guess you could plan a very much more viable project today?

[11_percent] 28/9/2019 15:37

Hey......wait a minute.....I bought a pile of shares because we had a stack of cash in the bank.

Peeps were saying £20mill cash...…...now we have £18mill for ATHENA, and £3.6mill to Royal bank of Scotland…̷0;..anything else………… a retained deficit of over £40m…230;….what next.

[11_percent] 28/9/2019 14:34

Typo56
27 Sep '19 - 15:00 - 9912 of 9914
0 0 0
Will they disclose any related party transactions with, say, Altair Construction & Development Ltd, or will we have to wait until the Annual Report (as seems to be the tradition).

==================

Nothing wrong with being optimistic......but you will have to wait....period.

[cyan] 28/9/2019 13:34

Athena's future is a mystery to me; its past however, is a well known nightmare.



Page 57 of the annual report has more on Athena

An extract;

ATHENA

“The Group has assessed a redevelopment of the remaining reserves in the field over a longer term period to achieve the existing carrying value of £7,700,000 “


That’s a clever thing to do; ATHENA is an “asset” with potential value

I can see why PMG want to talk of redevelopment and not decommissioning when you read this;

In 2014 Athena estimated decommissioning costs were reported to have shot up to £60 million.

So if PMG have 30% of the ATHENA liability; isn’t that £18 m liability to PMG?
Has cash been spent already on partial decommisioning?

See below



Trapoil (AIM: TRAP), the independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf ("UKCS") region of the North Sea announces that it has received an updated report detailing current estimates of the Athena decommissioning costs by Ithaca Energy Inc. ("Ithaca"), the operator of the Athena Field (the "Report").
The Report, which has been independently prepared by Petrex Ltd on behalf of the partnership, estimates that the Athena decommissioning costs will be approximately GBP60.0 million

[francoismyname] 28/9/2019 12:26

31p and I’m in. Not before.

£8m de commissioning costs off any cash balance

[typo56] 27/9/2019 15:00

Will they disclose any related party transactions with, say, Altair Construction & Development Ltd, or will we have to wait until the Annual Report (as seems to be the tradition).

[mallorca 9] 27/9/2019 14:14

tournesol,

the update due in November is Full Year Results for year ending 30th June 19.

The full year comparison will be good (in terms of revenue & profit ) as the 1st 6 months of the year saw natural gas prices at record levels. They dropped off in the 2nd half but the full year comparables verses 17/18 will be good.

[11_percent] 27/9/2019 14:11

I was having a larrff...

[cyan] 27/9/2019 14:01

"Don't forget the post results £6m from faore me ole bean"

You are absolutely right tongostl

"In January 2019, post reporting period end, a recommended cash offer for Faroe Petroleum was made by DNO ASA of 160 pence for each share in Faroe Petroleum. This offer was successful, and as a result, Parkmead received GBP6.2 million at the end of January 2019."

Now why didn't PMG use that cash instead of all that dilution to takeover Pitreadie farm Ltd...Ummmm

I guess that would not have helped the CONCERT Party aims?

[typo56] 27/9/2019 13:49

11_percent: "only in the divi mind"

Not a dividend I assume? I think it would be against company law to pay a dividend with a retained deficit of over £40m, although I'm amused that they don't ever say this in the results, preferring to say...

"Due to Parkmead's ongoing growth opportunities and associated investment programme, the Board is not recommending the payment of a dividend.."

Spin, spin, spin!

[tongostl] 27/9/2019 13:22

Don't forget the post results £6m from faore me ole bean

[tournesol] 27/9/2019 13:13

Seems to me that the next operational update will reveal something pretty critical about gas sales.

Previously I was under the impression that gas sales were being done at long term fixed prices, so were immune from volatility.

I have tried to verify that understanding with the co but have drawn a blank. I now think that I was wrong. If so, the price obtained this year might have been much lower than previously.

If that turns out to be the case, the next operational update could have v disappointing numbers in it.

That would not exactly help the SP

[cyan] 27/9/2019 12:59

29th march 2019

"Well capitalised, with cash balances of US$30.1 million (GBP23.6 million) as at 31 December 2018 (2017: GBP24.4 million)"



================================================================================

31.12.2017 £24.4 million
31.12.2018 £23.6 million

What is it today?

Remember ; The Pitreadie Farm Acquisition has added £3.6m debt to be paid in circa 3 and half years

[11_percent] 27/9/2019 12:55

Bottomed you say????.....might be worth a punt.....but we don't know what scam TC is going to pull next.

The wee problem is that Polar.......having decided to sell....will keep selling.........decisions, decisions....

[eastbourne1982] 27/9/2019 12:53

Calm down lads.

It's only money.

[tongostl] 27/9/2019 12:48

And that's me back in. Mrkt cap of £37m with £30m cash in the bank, yes please. Back up to 7pm now I thank you very much.

[fardels bear] 27/9/2019 12:15

I never saw either of them posting on here before that farm deal.

[archie61] 27/9/2019 12:10

FB, one consolation with the price bottoming,The chuckle bros are not happy,i'm sure they'll be back as soon as we drop again.

[fardels bear] 27/9/2019 11:08

So let's all scream and rant and rave until the price drops a bit and then completely change our stance and outlook as soon as we've bought back in. Dear oh dear oh dear indeed.

[fardels bear] 27/9/2019 10:23

You talked the share price down one you'd sold with your dreary concerns and then as soon as it looked like bottoming you bought back in and immediately started ramping it again. Shame on you.

[mallorca 9] 27/9/2019 09:58

Fardels

Why ….

to get out just below 50p and back in at 37p.

I've told all what I think of Tom Cross and my worries about what could happen next , however , a Market Cap of £36m is ridiculous (it actually should be closer to double that) and even if TC did want to make shareholders an offer then that offer would have to be circa 50p.

Mrs Mallorca insists that I make money doing this otherwise she say's I have to get a 'proper job'.

Inland Homes INL continues to do nicely too.