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KrisEnergy
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Lucky03
Elite |
21-Jan-2017 09:24
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Below article was published 29 Dec 2016 and stated a timeline of 2 weeks so around the corner now. Just nice that KrishEnergy has secured additional financing of $140m via the preferential offerings with issuance of Notes to push ahead their game plan to step up production as the oil price recovers. Just up more then 2% on Friday.
KrisEnergy had S$130 million 6.25 per cent notes that would have come due in 2017 and a further S$200 million 5.75 per cent notes due in 2018. Now, it only needs to return bond holders their principal in 2022 and 2023 respectively, after more than 75 per cent of voting bond holders gave KrisEnergy the green light at meetings held early Friday Dec 9 2016, the company said in a statement to the Singapore Exchange. http://www.khmertimeskh.com/news/33718/krisenergy-to-start-drilling-for-oil/ KHMER TIMES/MAY KUNMAKARA THURSDAY, 29 DECEMBER 2016 1727 VIEWS KrisEnergy to Start Drilling For Oil Singapore-listed oil and gas firm KrisEnergy is expected to begin extraction from the Block A offshore oil field in the next two weeks as the government is close to finalizing the agreement, a ministry official said. Ministry of Mines and Energy secretary of state Meng Saktheara said the ministry had already approved most of the agreement, with only small portions remaining for the Ministry of Economy and Finance to look into. ?My ministry has already cleared, in principle, every issue,? he told Khmer Times. ?Just small things remain for the Ministry of Economy and Finance and the company?s technical team to meet and discuss the investment risks. Then everything will be done. ?It?s a good time to start working on their project while the global oil price is recovering slightly,? he added before predicting that extraction work is likely to begin in a fortnight. He also said that the draft law on oil and gas extraction is due to be finalized soon and would hopefully be approved by the government in early 2017. KrisEnergy?s vice-president of relations and corporate communications Tanya Pang echoed Mr. Saktheara?s statement, noting that the company was close to completing the agreement pending the finalization on several details. ?Finalization of all agreements relating to the Block A oil development requires inputs from both the Ministry of Mines and Energy and Ministry of Economy and Finance,? she told Khmer Times. ?We have provided our input and we are waiting on both ministries to respond. Major issues have been resolved and only the drafting details are being fine-tuned,? she added. Ms. Pang said that both ministries have been ?proactive and helpful,? adding that the process has been ?going well? thus far. She added, however, that KrisEnergy remained vigilant to the price fluctuations of the oil and gas industry regardless of when it will begin extraction activity. ?As we have seen over the last 24 months, oil prices may go through periods of extreme volatility so the overall commerciality of a project must be taken into consideration rather than today?s market. ?Higher oil prices may also bring higher costs for materials, services and equipment, which must all be taken into consideration,? she said. Even with the industry?s plunge early this year and its sluggish recovery, she noted that financing was not a concern for the company. ?Despite the tough prevailing financial and industry conditions, we have received support from our key shareholders and bank to proceed with this project. We do not foresee financing to be an issue,? she said. KrisEnergy has an overwhelming 95 percent stake in the Block A offshore energy concession after it announced in August that it was in negotiations to buy out Mitsui Oil Exploration?s 28.5 percent stake and GS Energy Corporation?s 14.25 percent stake, after the companies approached KrisEnergy to seek a sale of their shareholdings. The sale was completed on October 7, with the purchases adding to the 52.25 percent stake they owned since buying Chevron?s in 2014. The Cambodia National Petroleum Authority still has a five percent stake in the 4,709-square-kilometer concession located in Cambodian waters within the Gulf of Thailand. Officials from the Ministry of Economy and Finance could not be reached for a comment as of press time. |
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Lucky03
Elite |
21-Jan-2017 09:05
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http://donovan-ang.blogspot.sg/2016/12/kris-energy-12-december-2016-monday.html?m=1
https://2.bp.blogspot.com/-ieaW6WCXK6A/WE6vrxKyxvI/AAAAAAAAJyQ/4wOJGBMqb8UL_IKpM_gqBEdzzEobHRFowCLcB/s1600/kris-energy.png MONDAY, 12 DECEMBER 2016 Kris Energy: 12 December 2016, Monday, 10.31pm Singapore Time Kris Energy: 12 December 2016, Monday, 10.31pm Singapore Time Kris Energy stock is a special request made by a follower asking if I could do an analysis of the stock for him. As he had taken every effort to click like on many of my posts, always grateful of me in sharing my analyses, it is only right that I devote much of my time to do a more in-depth analysis for him as a sincere gesture to reciprocate his kindness. Afterall, gratitude is a golden virtue. The light orange zones are my live warnings in early 2016 calling for a crude oil commodity true bottom (THE ROCK BOTTOM). As Singapore stock market lags behind the crude oil market, the volume for crude oil stocks came only in 2Q and 3Q of 2016, during which I repeatedly did many analyses on crude-oil-related stocks calling for massive buys on them at the true bottom. Some of the examples include Ezra, Ezion, Charisma Energy, Chesapeake Energy Corp (NYSE-listed), Magnus Energy, Geo Energy, Loyz Energy and Phillips 66 (NYSE-listed). If that is not enough, I even went to my Facebook wall and Facebook forum to directly say that KrisEnergy, KeppelCorp, Sembcorp, Chevron, Shell etc had all bottomed as there were just too much to post as chart analyses. For Kris Energy, 0.31 is the first target (take half profits), 0.60 is the second target (take half profits of the remaining half left), and $1 area is the final target (take all profits of whatever is left if it does come and for which I cannot see so far yet) |
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Lucky03
Elite |
20-Jan-2017 17:58
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Trading will commence 2 Feb instead of next Monday 23 Jan.
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Lucky03
Elite |
20-Jan-2017 17:54
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KrisEnergy has just issued Announcement the postponement of the issuance of the Notes and Warants due to delay of the clearance with Thai Entities or Thai Security | ||||
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Lucky03
Elite |
20-Jan-2017 16:39
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?天 时 、 地 利 、 人 和 ?
Just the right time, the right place & the right management and support from conglomerate such as Keppel. |
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Lucky03
Elite |
20-Jan-2017 16:31
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Upstream companies in O&G such as KrisEnergy in the oil exploration and production will be the first to benefit in the value chain when crude price recovers. As they stated and industry analysts commented, the notes and warrants exercise will allow KrisEnergy to quickly turn their oil fields to make production. | ||||
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Lucky03
Elite |
20-Jan-2017 16:28
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Many things will happen over the weekend. Among which will be OPEC updates of the crude production cut compliance by members. The price is moving up now. | ||||
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Lucky03
Elite |
20-Jan-2017 16:24
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Up north already consolidating...
KUALA LUMPUR: UMW Oil & Gas Corp Bhd (UMW-OG) will emerge as a leading integrated oil and gas (O&G) services provider via its pro- posed consolidation plan, which will see the company wholly acquiring o shore support vessel (OSV) play- er Icon O shore Bhd and marine transportation vessel player Orkim Sdn Bhd. Ekuiti Nasional Bhd (Ekuinas) and UMW Holdings Bhd (UMWH) yesterday outlined plans for the con- solidation of the three companies, kicking o the consolidation of local O&G players amid the challenging industry landscape. ? e combination of these three companies will transform us into a leading integrated services provid- er and will strengthen our capital position. ?And more importantly the emer- gence of two strategic shareholders, with strong nancial positions, who truly believe in our long-term via- bility and sustainability of the O&G industry,? said UMW-OG president Rohaizad Darus at a media brie ng yesterday.
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moron101
Supreme |
20-Jan-2017 15:03
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This counter could be a buyout target within half a year as profits are increasing & oil recovering.. and most importantly no more immediate outstanding debts. | ||||
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Lucky03
Elite |
20-Jan-2017 14:42
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This year is highly likely to see increased M&A and consolidation activities among the O&G players. One of which is parent companies and major shareholders targeting delisting or consolidation. Being able to spot the right ones can yield handsome returns. | ||||
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Observers
Elite |
20-Jan-2017 09:52
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This exercise gives us a peek into the sentiments within the industry. Even for a mid-cost oil producer who benefits directly from any oil price increase, it' s already so difficult to raise long-term funds even with the massive market discount given for the warrants (11 cents exercise price). How hard will it be for others in a less favorable position, lower down the money line to do so. Of the 50.2% valid acceptances, most of it already belongs to KOG (almost 40%). Only about 22.6% of the 7 year notes taken up by 3rd party investors.
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ojunyuan
Member |
20-Jan-2017 04:38
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bb coming soon | ||||
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rogeryap
Member |
19-Jan-2017 23:39
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Can go back to 60cts bo LOL
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Lucky03
Elite |
19-Jan-2017 21:15
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💪 💪 💪 🙏 😀
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happyboy
Member |
19-Jan-2017 18:52
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I mean Lucky03
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happyboy
Member |
19-Jan-2017 18:49
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Give you a like Elite. I am also quietly confident on this counter. |
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Lucky03
Elite |
19-Jan-2017 16:47
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Companies like KrisEnergy may be potential targets for M&A.
Big Oil back on the acquisition trail as outlook brightens Big Oil back on the acquisition trail as outlook brightens Reuters | Jan 19, 2017 02:25AM ET Be the first to comment Big Oil back on the acquisition trail as outlook brightens© Reuters. The word oil is pictured on an oil bank at a recycling yard in London By Ron Bousso LONDON (Reuters) - The world's top oil companies are back in acquisition mode, targeting smaller exploration and development firms to boost oil and gas reserves rather than the mega-mergers that followed previous slumps in crude prices. Since late November, major oil companies have announced 11 deals worth more than $500 million each with a combined value of $31 billion, the clearest sign yet that oil executives are more confident a recovery is underway. When crude prices collapsed in the second half of 2014, large oil firms slashed spending on exploration and production and offloaded assets to reduce debt so they could cope with lower revenue from oil and gas sales. But with crude reservoirs declining at a rate of 10 percent a year in some cases, major oil companies are now looking to snap up assets to start growing again and there are plenty of smaller firms burdened with debt looking to sell. "You're seeing the majors sharpening their pencils after a long while and actually flipping around from disposals to acquisitions," said Tony Durrant, chief executive of British energy firm Premier Oil (L:PMO), which is looking to sell several stakes in its North Sea operations. Total acquisitions of oil and gas fields, known as upstream assets, tripled to $31 billion in December from a month earlier, when the Organization of the Petroleum Exporting Countries agreed to cut output for the first time in eight years, according to data from consultancy Energy Market Square (NYSE:SQ). Deals in the last month of 2016 alone accounted for nearly a quarter of total activity during the year. (http://tmsnrt.rs/2jv9If6) MAJOR DEALS BP (L:BP) announced a string of investments in the last two months of 2016, including a $1 billion partnership with Dallas-based Kosmos Energy (N:KOS) in Mauritania and Senegal in West Africa, as well as acquisitions in Abu Dhabi and Azerbaijan. The British company also spent $375 million on a 10 percent stake in Eni's (MI:ENI) giant Zohr gas field in Egypt while Russian oil giant Rosneft (MM:ROSN) bought 30 percent stake of the same field for $1.575 billion. France's Total (PA:TOTF) and Norway's Statoil (OL:STL) bought into Brazil's lucrative sub-salt deepwater oil fields while ExxonMobil Corp (N:XOM) bought assets in Papua New Guinea to meet growing Asian demand for liquefied natural gas. The trend continued in January with Total boosting its stake in Uganda's Lake Albert oil project by snapping up most of Tullow Oil's (L:TLW) stake for $900 million. ExxonMobile and Noble Energy (N:NBL) also struck deals worth nearly $10 billion combined for a larger slice of the Permian Basin, the largest U.S. oil field. While deal making outside the United States almost ground to a halt at the start of 2016, acquisitions in North American shale basins have continued at a steady pace. In the Permian Basin, for example, the time it takes to produce oil and gas after an initial investment is far quicker and cheaper than developing conventional fields over three to five years. ONLY CHOICE More deals are likely this year as the large overhang of crude oil in the world that has weighed on the market since 2014 continues to clear and oil prices rise. "When you can cut capex (capital spending), two-and-a-half to three years later you see production decline and reserves depleting and you have one choice only and that is going after high quality resource," said Sachin Oza, co-manager with Stephen Williams of the Guinness Global Oil and Gas Exploration Trust. "If you've not spent any time filling your hopper with these opportunities that take five years to build up, there is only one choice: you have to buy them," said Oza. The Guinness Trust is a fund that invests in firms in the early stages of exploration or development of energy resources which it believes will attract investment from oil majors. Investors reckon large firms will focus on underdeveloped basins in east and west Africa, Romania and Albania, as well as nascent Latin American reserves in places such as Colombia, all areas where the growth potential is seen as greater than in established regions such as North America and the North Sea. While slides in oil prices typically unleash a wave of takeovers, companies emerging from the current downturn are generally shunning outright acquisitions and instead looking at specific deals for specific fields. After a prolonged period of low oil prices in the late 1990s Exxon merged with Mobil, Total merged with Elf Aquitaine and Petrofina, Chevron (N:CVX) bought Texaco, BP snapped up Amoco and ARCO and Conoco (N:COP) and Philips merged. This time round, the only stand-out acquisition has been Royal Dutch Shell's (L:RDSa) takeover of BG, which was announced in April 2015 and completed in February a year later for $53 billion. BUYER'S MARKET As large oil firms are wary of increasing their debt burden at this point, investors say corporate acquisitions are likely to be limited in numbers and scope but oil field assets are very much in the crosshairs. Oil majors are opting for joint ventures to develop specific fields in complex deals, such as share swaps or deferred payments, to lower their risk and limit the amount they need to spend upfront following two years of budget cuts. "The international (ex-U.S.) asset market is a buyer's market, as sellers continue in balance sheet preservation mode," said Charles Whall, energy portfolio manager at Investec Asset Management. "European majors, which already have large dividend commitments, are unwilling to use equity for assets without immediate cash flow ... Most of these asset deals are structured to minimize the debt impact in the near term," he said. Such deals also mean the sellers can retain a stake in the assets as their value rises with oil prices, said Oza and Williams at the Guinness Trust. Analysts say for much of 2015 and 2016 there was subdued activity because buyers and sellers were too far apart on price. Buyers hunting for bargain-basement deals were frustrated by sellers holding out for better terms but as oil prices have started to stabilize there has been more convergence. According to Martijn Rats, equity analyst at Morgan Stanley (NYSE:MS), most of the deals announced in recent months have been based on a long-term oil price of about $60 a barrel to $65 a barrel. While that is significantly lower than before the collapse in oil prices from a 2014 peak of $115 a barrel, it is still above current long-term oil price forecasts, Rats said. Written By: Reuters |
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Lucky03
Elite |
19-Jan-2017 16:24
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Don't miss the boat when it moves.... | ||||
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Lucky03
Elite |
19-Jan-2017 14:23
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FY15 result was released 25 Feb 2016. So probably willl release FY16 result in a month then ?
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Lucky03
Elite |
19-Jan-2017 14:20
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The industry generally viewed the financial restructuring exercise as a positive move. My opinion is that it turns out better than expected given Keppel now will pick up the unsubscribed notes and warrants. It is better to be in the hands of a strong conglomerate and Keppel stated that it will build more synergy with KrisEnergy. Besides, there may be more reasons for Keppel to consider a mandatory offer to delist KrisEnergy now when the crude price is just starting to stabilize and prospect of rising is high. Below is an article from BT in Nov 24 2016.
HOCK LOCK SIEW Lessons from Rickmers for KrisEnergy Thursday, November 24, 2016 - 05:50 by ANDREA SOH As it contemplates its response to demands by its noteholders for fairer terms, KrisEnergy would do well to heed the lessons from the current state Rickmers Maritime has found itself in: namely, that there is a price to be paid for keeping a financially-strapped company alive, and shareholders cannot expect to get out of default with only a small sacrifice. PHOTO: KRISENERGY LTD AS IT contemplates its response to demands by its noteholders for fairer terms, KrisEnergy would do well to heed the lessons from the current state Rickmers Maritime has found itself in: namely, that there is a price to be paid for keeping a financially-strapped company alive, and shareholders cannot expect to get out of default with only a small sacrifice. Some of KrisEnergy's noteholders have expressed unhappiness with the current terms offered by the company in its financial restructuring efforts. A group of them, in a letter on Monday, demanded for higher coupon rates and a shorter extension period otherwise, they say they intend to vote no to an "inequitable offer". The Business Times understands that there are some 100 individual investors in the group, but it is unclear how much of KrisEnergy's S$330 million bonds due 2017 and 2018 they hold. KrisEnergy, when launching the consent solicitation exercise last Thursday, had indicated to BT that these terms are final. On Monday, when approached by BT, its spokesperson said that the firm is reviewing the noteholders' letter and will respond "if and when management deems appropriate". With the latest development, the question that naturally arises is: Could KrisEnergy end up in the same dire straits as Rickmers Maritime, which has had to suspend trading of its units in the midst of uncertainty over its financial restructuring efforts? SEE ALSO: Rickmers Maritime's notes restructuring plan rejected again After defaulting on bond interest payment of S$4.26 million on Nov 15, Rickmers Maritime, a container ship operator, said the next day that it couldn't show it was able to continue as a going concern, given the current uncertainty over the outcome of its talks with senior lenders to obtain standstills and/or waivers for its loan obligations. A noteholders' meeting held earlier on Nov 9 had to be adjourned, after failing to garner the required threshold to justify a vote. Another meeting is being planned for between Nov 23 and Dec 21. Rickmers has struggled to get noteholders to swap its S$100 million notes due next May for S$40 million worth of notes due in November 2023 and new units in the trust. Its noteholders said they saw the plan as promoting the interests of secured creditors and the majority unitholders in the shipping trust over that of unsecured creditors. Even for KrisEnergy - which has been lauded for being upfront about its financial difficulties as compared with many other firms - efforts to make sure the company stays in business might go down to the wire on Dec 9. That day, noteholders will vote on whether to approve the extraordinary resolutions which require them to swap their existing bonds at full face value for new ones that mature five years later. The group currently has S$130 million of 6.25 per cent notes due 2017, and S$200 million of 5.75 per cent notes due 2018. On the very same day, the group will have interest payment due on the 2017 notes, amounting to about S$4.1 million. If the extraordinary resolutions are approved, other financial restructuring plans also fall into place. The company will be able to access the remaining US$35 million bridge facility on its revolving credit facility from DBS, which will be used for the interest payment, resolving an immediate liquidity challenge for the firm. With the noteholders' nod, KrisEnergy will also be able to tap S$140 million from the preferential offering of zero coupon secured notes due 2024 which come with up to 1.25 billion warrants. These essentially provide the company with a five-year runway to further develop some of its assets and bring its production of oil and gas to a higher level. If the resolutions aren't passed, however, the company said there is a risk it might not be able to make the payment for the interest. As at Sept 30, the group's unused sources of liquidity - including cash and cash equivalents as well as the undrawn portion of its revolving credit facility - stood at US$37 million, an amount that seems large enough to pay for the interest. The group's current liabilities of US$191.2 million, however, overwhelm its current assets of US$128 million. A failure to pay the interest on the bonds could trigger an "event of default" that would in turn set off cross-default and/or cross-acceleration clauses in its revolving credit facility and other loans. Legal proceedings resulting from these may lead to the group losing its operatorships and petroleum licences due to government confiscation, KrisEnergy said. In other words, when the company reaches that stage, it becomes a lose-lose situation for all involved: shareholders, noteholders and employees. For now, KrisEnergy appears to be starting off from a better position than Rickmers. Its noteholders have asked for warrants as compensation for having up to 2 per cent of the original coupon levels being capitalised this potentially shows a confidence on their part in the company's future growth. It is inevitable that both shareholders and noteholders will have to pay the price for keeping a company alive, but with good management and a forward business plan, the price paid today can be recovered with growth tomorrow. |
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