A corporate update from iog this morning, last years achievements are very real, with the farm-out to CalEnergy the Core Project is very much up and running, this year will be full on in terms of getting it into development.
So, the key takeaways for iog at the moment are based around the strong position they find themselves in, particularly being fully funded with a high NAV going forward following recent FID. The project team is being built, expect announcements of very senior appointments to the team, indeed I hear that some big guns may be coming onboard.
This year should see plenty of news flow, the FDP will be going gangbusters getting this major project ready to drill in 2021. In this key development phase there will be milestones to record and pass on to shareholders such as work on platforms and the pipeline as well as at Bacton.
In addition to the existing asset portfolio iog are determined to increase the base, this will be done by leveraging existing assets particularly in the current hub but also by judicious work in the 32nd round in Q2. All in all as they start 2020 iog are very well placed and fully funded for the Core Project and possibly much more.
Genel has announced that the Taq Taq partners have received a gross payment of $6.7m from the KRG for oil sales in August 2019. Of this, Genel’s net share of the payment is $3.6m. It has also received an override payment of $7.4m fr9m the KRG representing 4.5% of Tawke gross licence revenue for the m9nth of August 2019 as per the terms of the RSA. All encouraging as it points to normalisation in the area.
For confirmation, the company has confirmed that it has completed the recent financing which secured £4.1m and is expected to fund the company for the next two years.
Readers will know that despite current upheaval the situation in a Syria is improving all the time and it is only a matter of when not if that the company returns to the country. At that time the shares will be a significant multiple of this, in the meantime shares can usually be traded via auction at the Asset Match platform.
The company has announced a trading and operations update which shows Vietnam production in line with guidance at 7,081 boepd but Egypt light of guidance due to operational delays. Q1 2020 will see three rigs operating in Eqypt to make up for the shortage. There is a visit to Egypt in February so much more will be gleaned then.
Cash balances at end December were $58m which includes $100m drawn from the RBL and the dividend for this year will be 2.75p paid in two equal tranches, don’t expect delirium from the shareholders about this.