PARKMEAD

24 billion barrels of oil still to be extracted from the North Sea. I'm sure Tom wants to share the oil. What's out there West of Shetland and Scotland. It's obvious there is Plenty more oil !

So you managed to get away with ANOTHER short term ban then? Best behaviour now or they will make it permanent. Posts removed from more than one thread? Thin ice CSZ!

Well it appears it's not all doom and gloom. One interesting point of late is that Total are selling a substantial amount of assets.
In sure TC will be checking out some deals.

Posts removed and suddenly gone MIA. Looks like lies finally caught up with CSZ.

Parkmead only update shareholders when the have to so I'm not surprised they haven't commented on Athenas profitability.

Based on Traps figures it could be cosing parkmead 720k a month to operate the field (slightly less with the hardening of the oil price), so the apparent profitability announced in November has evaporated and the company is probably running at a loss.

The Netherlands news is more positive as gas prices have held up but I suspect no news is good news - broadcasting operating losses is not a cleaver option in the current market.

Oil stocks aren't for the faint hearted - afren @ Gkp spring to mind but at least PMG is in good hands.

M

I'm sure you'll thank Wikkid for saving you some money, lol.

So it wasn't really me that did anything wrong it was your imagination and you just posted the fantasy rather than the truth. Sounds about right from your posts over the last few years

I had a dream and you were Trap Oils CEO

Haha. You were happy to be part of 4,5,6 against one in the past. But that's not a problem when you're calling things right and being truthful like I did.
How did I manage to put you off Trap? I've never posted on it or owned it

PFG
2 against 1 is never fair. How ever I'm glad I never bought Trap although I did think about it. I think the Kid put me off.

CSZ, I see you are using the "shoot the messenger" defence, and ignoring the message. At least you are consistent.

I have spent part of today trying to find out why the people in TRAP chose to issue the statement it did this morning and why certain information given apparently paints an unnecessarily bleak picture.

First, none of Trap's partners in Athena has seen the need to issue any statements similar to the ones TRAP recently has. Furthermore, I understand two other participants advised against TRAP currently saying anything, because it could potentially affect sensitive commercial negotiations that are current. That advice was apparently ignored.

I would ask the following questions:

1 Is it really going to cost £60m in abandonment costs of Athena, 4 or more years in the future – assuming the participants don’t elect to drill further wells to access oil known still to be there but inaccessible with the current infrastructure? That estimate was made when service providers' rates were a great deal higher than they are today. It is common knowledge that an estimate made today would be considerably less than $60m.

2 In these circumstances is TRAP's liability for decommissioning really the £9m we are told it is? Why has no comment been made about this?

3 What has happened to the £9m TRAP has told us it has been required to pay (by inference £7.5m in advance - we were told recently there is still £1.5m still to pay)? I understand at least one other partner has not been required to put up anything in advance.

4 Is the wording of this morning's RNS misleading? I gained the impression TRAP is £380k per month cash flow negative on Athena alone, based on an oil price of $58pb. I now understand from a reliable source in another company not unrelated to Athena that break-even is certainly achieved at $65pm, maybe lower, not the $85 the RNS caused me to believe it is. The word: "company" has been slipped into the middle of the paragraph dealing with Athena costs, so I now think the truth is that TRAP AS A WHOLE may be £380k per month cash negative (ie after including overheads such as occupancy costs and directors' salaries - for instance the 6 figures I understand the FD is paid for working 3 days a week).

5 Given the likelihood of oil prices remaining around the $50 level (or somewhere near) for some time to come, is it possible the operator will take steps to reduce production costs, so that break-even is achieved at a price lower than it currently is?

The suspicion is (don’t know if it is true) Schroders has reduced, or maybe exited completely, today. If it has, it will be interesting to see if any particular holder/s have picked up their shares and at what price. Nice work for the MMs, who paid 0.4p for about 12m shares when the bid was 0.7p and then sold most of them at around 0.8p during the course of the day.

What is going on here and who is pulling the strings? And why?

I wonder how quick the company be to tell us if and when any current initiatives might have a positive effect on any of the above? "Not very" would be my guess, although I can't presently think why.

I'll find out though.

Another downbeat announcement by the finance men who now seem to be in charge of TRAP. Why are two of them needed with cash now at such a premium? From the tone of the announcement, one would almost think they want the price to crash. Meanwhile they keep taking the money.

In a nutshell, they seem to be telling us there is a year left unless the price of oil recovers to something sensible, so that Athena operates at a profit. In practice the pressure will be on well before this, so it's no wonder the price has crashed this morning.

To me, the numbers don't stack up. At a production rate of 720bpd (21,600 per month) and a price of $58pb, the clowns (who are so clever they PAID to close out the $90 hedge last year - you couldn't make it up) TRAP is losing £380k a month at Athena. Convert that to $ and you get around $583k. So TRAP is telling us it's losing $27pb, suggesting an oil price of $85 is needed to break even. It's not N America and this isn't shale. The figures must surely be exaggerated? What one has to work out is: 'for what purpose'. As the QC for the plaintiff said in a court case I attended last year involving two oil companies: "I smell a rat - and it's a great big smelly one".

My gut feel is that shareholders' best hope lies in Peter Guillenhammar deciding he's not going to be screwed over by this crew and that we see him continuing to increase his stake in the company. Quite what the answer is, or what he could do, I don't know because fundamentally the company is going to run out of cash fairly soon unless the oil price recovers quickly (unlikely according to most).

I suppose it is possible one or more of TRAP's partners in Athena might be prepared to take a longer view of oil prices and pick up TRAP's share of Athena, but at what price and when?

With an overhead spend of around £1m a year (why this much now?) and a cash burn at $58 of £4.7m pa, the pressure is on. The drill in March assumes more importance in the circumstances. That said, these days it might be regarded as a disadvantage if the drill is successful and there's actually oil there which is a liability to extract!!

This company needs managing by people who know what they're doing. How likely is it that that's going to happen?

Come on PG...................

The field is loss making to Trap. The other partners appear to be carrying on as normal.

The price paid has nothing to do with it CSZ. If the FIELD is losing money even if someone acquired it for nothing they will lose money.
You know that the FPSO is not discounted or renegotiated so why the need to keep up the lies? Twice the % of the field = twice the losses from the field. Pure fantasy post from you once again. Are you losses making you deluded?

Maybe the partners didn't tell Trap about the renegotiation and Trap are paying for everyone else's share of the costs? Then PMG and the other partners are making a fortune. They will be getting the full price of the oil sold as profit.
Workover looks like a very expensive failure and cash burn will be a concern before long. Would be good to get news from PMG about this and cash levels.

From Trap's announcement today:
As announced on 8 January 2015, the Athena Oil Field, Licence P.1293, Block 14/18b ("Athena"), in which Trapoil holds a 15 per cent. equity interest, had achieved stabilised gross production rates of approximately 4,800 barrels of oil per day ("bopd") (720 bopd net to Trapoil), following the completion of the workover and certain other further intervention work. Production rates continue at around this level, however at the currently depressed oil price of approximately US$58/barrel the field is significantly loss making and the Company is currently incurring a cash outflow of approximately GBP380,000 per month after absorption of its share of the field's operating costs. We are working closely with the operator and our other licence partners to advance opportunities to enhance the financial performance of the field.

CSZ, still think that PMG is cash flow positive on Athena?

I sold my holding in PMG about a year ago when I decided to get out with a profit of some sorts. Left the board and have just come back for a quick peek.

See nothings changed...

It's still monopolised by CSZ and wikked accusing each other of lying, avoiding answers, failing to invest, talking in riddles.

I reckon you're secretly shafting each other and want to keep from your partners so you lay all these smoke screens. Admit it chaps - you just love each other don't you?

Parkmead worth a buy ! Cross up beat on future deals due to current oil prices.

You see you just don't get it do you? You think that because ive called this correctly that im automatically bad and have resorted to abuse like you always do, even though you've just slated me for 'abuse' when all that I do is ask you to justify what you have claimed as fact but what was really lies.
Im sure that nobody takes you seriously anyway but ill just keep on pointing out your false ramping posts and asking you to back them up which you and everyone else knows that you cant. This makes people realise that you don't know what youre posting

Why should I talk to team cuckoo who are only interested in talking the price down !

It's a pity that you cant answer any question EVER or even attempt to clarify what you have said!
That's the only time that you get any grief from me!

Its a pity your silver tongue cannot control your abusive tongue more often !

CSZ you couldn't be more wrong. I've never been negative about PMG only it's overvalued shareprice. Calling a massive fall correctly has to be better than telling lies about the company and costing people money by enticing them in based on lies wouldn't you say?
Lets face it, this has fallen by about 80% because people were buying in and pushing the share price up on the basis of hope of jam tomorrow alone. Next to no assets, STILL no debt finance in place, a bit of cash but this will be getting burnt through, huge bills ahead before the 'magic' time arrives. The current share price is around a decent price IMO but the longer oil prices stay low the lower PMG cash pile gets and the lower the sp may go.
There you go, a decent answer, when are you going to back up something that you say with details or facts?

Kid
Never any praise for Parkmead always negativity....... The board can see right through you ! Even getting posts removed by vigilantes. How come you never get ticked up ?

No CSZ truth truth truth. You might need a dictionary to help you understand the meaning of that.
I can only bash where you've done wrong unlike you who resorts to nonsense just to have a go because you don't want to discuss your old posts or your false accusations about mine.
If you posted the truth or apologised when you got 'mixed up and posted something false' you wouldn't have to hide with embarrassment from your own posts would you?

Kid
Bash bash bash. does your master pay good bonus.

Is that because you don't count as anyone? I'm happy to keep exposing your false posts!

It appears you are having a conversation with yourself again !

This from the person who claimed my posts were nonsensical.
This does show that your IQ is higher than I have given you credit for. At least this time you have managed to say the SAME thing 3 times, normally you change every time.
Caught out of your lies again CSZ, tut tut tut

PFG
What's wrong your short looking iffy now ?
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CSZ, the only shorts I've got are the ones I use on the boat that I bought with my successful investment strategy. You could be right that they look a bit iffy, though. LOL.

No CSZ no foul mouth here just some painful truth. The only foul thing here is the BS that you post.
How come a simple question on a topic that you claim to know so much about is suddenly my being foul mouthed?
What is it that stops you answering any question for over four years now?

Kid
You are on the wrong board try your foul mouth else where !

Not half as iffy as your 100% promise of 30p was, or your advice to get a loan to buy in.
So BW will be looking to renegotiate the contract back to the original amount now? What did they negotiate it down to CSZ and what date was it effective from?

PFG
What's wrong your short looking iffy now ?

CSZ, I think I'll just leave you to your fantasy world........

If there's "obviously enough oil coming out" why exactly is an FPSO contract renegotiation required?
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Ha ha why is every other oil company renegotiating with the supply chain.... Why would PMG be any different from them. Honestly !

So let's recap:
PMG's oil from Athena is in profit, there's talk of a new well but there's enough coming out so no need to do the redrill. The FPSO has been renegotiated and will be renegotiated and will be in the plans to be renegotiated and will be renegotiated for future work brought about by the talked about new wells that aren't needed due to enough oil coming out.
You don't make sense very often but this conversation is one of your best CSZ. Please, please help us understand what you mean by all of this?

If there's "obviously enough oil coming out" why exactly is an FPSO contract renegotiation required?

No quote is my speciality. That's what I did and what you said doesn't make sense. Between January and now you have claimed 4 different things about BW Athena and its terms.
Why not clarify to all which one it is? With some proof now!