Rockhopper reports lower losses

3.7 million) in the first half of the year, compared with $20 million a year before as it reduced its exploration expenses, with extensive drilling and seismic campaigns coming to an end.

Exploration and evaluation expenses fell by $25 million, mainly due to a $15 million decrease in an impairment charge and a $10 million reduction in seismic acquisition costs.

The completion of the farm-out of the Sea Lion prospect to Premier Oil (PMO) in October crystallised $14 million of transaction costs and a capital gains tax liability with the Falkland Islands government, the company said.

The exact size of the liability is yet to be agreed but will be payable at 26% of the taxable gain in two installments, with the first trenche due in 2013.

The Sea Lion field is now fully financed. This means that Rockhopper has approximately 142 million barrels of financed oil that, from late 2017, should begin generating cash flow with an estimated value to Rockhopper in excess of $2 billion at a 10% discount factor.

The firm said in a statement: "Having approximately 142 million financed barrels of oil and $270 million of free cash puts Rockhopper into a very strong position.

"The current priority is working with the Falkland Islands government to input into their ongoing 'Oil Readiness Review', particularly in the area of tax where we have already had confirmation that following the review, our tax position in respect of the farm-out will be no worse and may be improved."

Analyst view

Analysts at Panmure Gordon commented: "

View the Original article

Equity crunch: Govt, not to abolish can lower airport fees

Delhi airport. Reuters

But while the AAI has agreed with the infusion of more equity, GMR has said that it cannot bring in more resources, because his lenders not promote more loans.

Left with no other choice but to compromise, to abolish the Ministry may not ADF all together in Delhi from 1 January, as promised.

A senior Ministry official told Firstpost, ADF may be reduced or even abolished but no final decision can be taken, unless the airports economic regulatory authority (AERA) takes a position. "the case before us AERA. In the case with a fresh consultation document AERA in the coming days, means that AERA is prepared to reconsider its position. In that case, the ADF can be reduced. But lets wait and see what happens ".

If Delhi gets to continue lifting ADF for more, would even the developers of Mumbai Airport try this option.

ADF is a method to bridge the gap in each airport project financing. The expected financing deficit for Delhi International Airport (DIAL) is probably Rs 1500 crore if ADF is repealed with effect from January.

Delhi and Mumbai airports (which is also a PPP-model airport with the majority partner GVK-led consortium) were allowed to collect the levy on an ad hoc basis for 36 months.

Departing domestic passengers pay Rs 200 and Rs 100 at airports, Delhi and Mumbai, while flying abroad Rs 1,300 and Rs 600 pay respectively as ADF.

. pagination_article

View the Original article