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Yes, should probably always go with worst case scenario when dealing with HDYN. I was thinking along the lines of a performance based settlement......
This is bad because arbitration normally takes longer than we have. Average around 300 days per AAA.
https://www.adr.org/aaa/ShowPDF?doc=ADRSTG_003838
This is what Tullow wanted. Get the time they required without losing face publicly. I would bet money that they (Tullow) honestly believe that Guinea will give them an extension to the PSC after arbitration is resolved (depending on the results of arbitration).
This is an arrogant assumption in my opinion, but things are what they are at this point.
I have already booked tax losses on my shares through previous repositioning so I have little left to lose by riding it into the dirt from which it sprung.
Looks like another long wait to see how the final act plays out....
Key takeaway from motion to suspend:
"Over the objection of Defendants, the emergency arbitrator has made the preliminary determination that he has jurisdiction to address Plaintiff’s requests for emergency relief."
A lot of talk talk about Tullow not wanting to drill. I feel Tullow already has indicated they want to drill. However, they have always indicated a desire to derisk by reducing ownership or other means. With Dana stone walling they are on the hook for the whole deal initially and I'm sure someone in the org questions HDYN's ability to meet future commitments on such a large project.
My ray of hope is that the Tullow wants to drill and their bankers and investors do not. If they get a legal ruling to go forward it could help stifle the bean counters. In a perfect world the legal intervention came with a wink and a nod from someone within Tullow. But that's probably a pipe dream.....
So plan B comes thru. Good timing.
To recap:
-HDYN files for arbitration and in parallel files with the court to seek injunctive relief until an arbitrator can be assigned.
-Tullow/Dana counter with motions and filings and get suit refiled, buying time.
-HDYN refiles court action in a different venue.
-Tullow moves to have proceedings removed to original venue that it protested and have that thrown to arbitration.
-In the mean time, an emergency arbitrator is appointed making the court filings moot for now.
Way to cover the flank, bet Tullow wasn't expecting such fast action by arbitration board. (at least I like to think that)
Now we will see if we get emergency relief requested without having to wait on the courts.
Wonder what protests Tullow will throw up to the arbitration?
Yea, can hardly wait to read their "12 filings" (NOT!)
So back in federal court, got a pacer account and will pick up popcorn....
Based on their current strategy, I expect either nothing or something along the lines of: " Progress is delayed due to actions of our partner."
They seem to want to turn it around to force HDYN into arbitration. I presume they feel they have some advantage in that venue or at least can delay longer.
I wonder if this has anything to do with the "language" Dana requested in the amendment. Something to the effect that the concession could not be stripped for any reason. Like not even if they fail to meet the dates in the agreement? This would make Tullow's argument that they have made a "best effort", but can't be compelled to bankrupt their company if they have time remaining.
It will probably get mucky from here....
I am curious how this affect the arbitration? e.g has it been dropped as well. Market seems to like the news.
Interesting development. Could be anything from our council reconsidering merits of filing, to giving partners another shot at signing papers.
I'm hoping it indicates progress and that HDYN team follows up on their indications to be more forthcoming with information.
My original background is in the music industry so kind of a different world sometimes. I have seen band members show up at a studio and trade paperwork on lawsuits they have going against one another, laugh about them, and go inside to work. ("What are you suing me for on this one?"; "Oh, I think that's the one where you used my photo on your t shirts. You just need to sign the summons."; "OK we'll probably be suing you back next week right?" laughter)
Point of story: Sometimes it's just the way business gets done...
BTW the scheduling conference was supposed to be today at 2p cst. Wonder what is happening with that? Presume Tullow was a no show, since Dana did not make any motions, might they have participated, or just coat tailed on Tullow's motions.
Wonder if Mr. Wilson sold his share or is holding out hope for next year.
Other than that, I think folks are catching their breath after an eventful couple of months.
Another article with a negative slant toward Tullow. If we could get some press like this in the mainstream media, Tullow might start becoming concerned. At least enough to respond publicly perhaps.
On the other hand, if this kind of behavior becomes more commonplace as the industry deteriorates, it may become the accepted norm.
http://www.africanlawbusiness.com/news/6091-guinea-drilling-gridlock-hyperdynamics-sues-joint-operators
Empower can't even organize a proxy, I sure don't want them running our company.
Voted FOR current directors via brokerage proxy service. I have not even received a "gold" proxy electronically or otherwise. Would be a day late and 50 cents short now anyway....
Hope everyone that can't attend gets their vote in today!
Just riffing here. We know Ray has proposed a buyout of Dana's interest, we can presume that Tullow would not want him to have a majority interest and they want the drilling cash. We have seen the number of $160 mil bandied about by the attorneys as a relative past value for the concession.
Sooo maybe they work out a deal where Dana gets bought out by HDYN and Tullow with Tullow retaining majority 51/49. HDYN gives Dana stock and a Royalty deal, suffering huge dilution, but moving the project forward (it's all or nothing at this point anyway). As a penance, Tullow agrees to carry adjusted HDYN/Dana share up to $100 mil (will probably come in under that now even with a higher percentage).
HDYN share price rebounds, but is capped by Dana selling to recoup cash, Tullow drills on the tightest budget ever run for a deep water well, and the status quo is maintained. HDYN share holders get their well but the share price still stays in the basement due to dilution, oil prices, and using up all their available cash to close the deal.
...Yes I am bored and waiting for the conference call where we will probably be apprised of the current developments we already know about....
To phxdishman:
Hate to cross post, but I want to get in on this
My own opinion on the reason for the sudden conference call is that it is the last chance to campaign for the BOD vote prior to the SHM. Maybe he wants to call out the interlopers. lol
First I want to thank TD and phxdishman for their DD on these court filings. This has brought some clarity to the current situation we find ourselves in.
On the surface, things do not seem as dire as I first imagined. (being concerned about protracted legal proceedings) I am concerned about a comment in one of the emails regarding considerable concessions made to the ROG. It seems that this was something Tullow was not happy about, but willing to accept if it would get Dana on board. There were also remarks regarding a provision for unanimous agreement on a point Dana had requested (sorry I don't access to docs right now). All of this seems to point to the minority partner being the source of the impasse. This bodes well, in that their approval is not technically required to proceed. So I agree Tullow may be simply trying to motivate Dana to get on board to reduce their own financial exposure. This would be prudent as long as it does not endanger the project.
IMHO this all seems resolvable....
I am considering contacting EmPower and offering to buy them 1 share of Tullow stock if they will put their slate of "proven" directors up for seats on Tullow's board. They could publicize the unethical treatment of their partner HDYN....
Sooo, as you pointed out, Tullow is eating the cost to have the Stena Drillmax sit idle, I'm sure there are some other minor expenditures associated with maintaining operations.
Seems our legal team's job is to nudge it up to where it's more cost effective to drill than to sit idle...
Exactly the point of the complaint. I have no doubts as to HDYN's claim that that it received this information. Based on the stock price climb that began on Oct 22nd, it must have been known to more than a few.... :-/
Of course, that and 75 cents will get you a share of stock and little else....
Sadly, it was already scheduled for March before everyone dug their heels in.
See p48 of the complaint:
Well it's a way out in left field shot, but Tullow is in a position where drilling a wildcat deepwater well is likely to tank their market cap a lot more than what they stand to lose in arbitration. On the other hand if an arbitrator compels them to perform it will be a lot easier pill to swallow for the board and shareholders.....Maybe going to arbitration is a calculated risk on their part, because it gives them an out without having to commit to an unpopular choice.
Yes, not to mention they have to save face publicly now. The initials can be easily spun off as a junior exec exceeding his authority. Feel a bit sorry for the poor guy as he is probably sweating bullets about being made a scapegoat...
Better get more popcorn....
Not to play the devils advocate, but when in the history of litigation has a an attorney reviewed a potential 9 figure litigation and said: "Yea, they got ya, better concede." or "I don't really need the fees, lets not even litigate this."
Reality is more likely that Tullow and Dana will respond with explanations and egregious counter claims to back their position. The most obvious of which will probably be: "We've got until Sept. How could we be in default now?" Followed by explanations of how they were planning to drill all along, they just wanted everyone on board, and this legal proceeding is now preventing them from proceeding. Blah blah blah
Sorry to be negative, but seen too many corporate shenanigans to think they won't try to spin this.
We got that close...(edited)
From the filing p48:
This is a tough sell for Tullow. Risk is for independents and wildcatters. Larger oil co's reduce risk by farming out/in and sharing the financial risk among multiple partners and plays. Tullow made a deal to carry Hyperdynamics risk on the 1st well.(or at least up to $100m) If Dana doesn't want to play (pay), that leaves Tullow with 100% of the risk and 40pct of the reward unless they can recoup some from Dana (which is also a risk). Taking on that much risk in an untested basin is going to be a tough sell when your company is trying to slash costs to stay competitive and keep shareholders happy.
Having received assurances from the ROG on the security of the PSC, the prudent thing is to delay hoping for an economic situation that is more accommodative to risk. I can see their position, but I don't like their execution. Better to be upfront with their problems/motives and try to work past them than to stonewall and hope.... JMHO
Yup. Still might be a lot of those .44-.45 shares that are still in the money. (mine were) will hold off a bit before buying back in. Still holding outrageously pried core lol.
Probably not a law suit since they are bound to arbitration I believe. Point is, this will take a looong time to get a final resolution. If they are trying to buy time, this plays into their hand as they can cave in and agree to perform anytime economic conditions improve. (they would have to be banking on the ROG wanting to keep the project alive or file another FM) If conditions don't improve then they lose a concession they didn't want to drill anyway. Moral of story: you and I are left holding the bag.
Like I said, hope I'm wrong on this scenario...
Having a hard time getting my head around this one. The one thing that keeps nagging at me is the motivations of the parties involved.
Grabbing for a bigger piece of the pie seems ridiculous with oil at its current level. I have to wonder if Dana/KNOC is fronting for Tullow. Dana's responsibility on the project is negligible in the grand scheme of things, unless they penny pinching every last line item in the budget. Tullow would probably rather drill later than sooner, but must put up the appearances of meeting obligations as the operator. KNOC has less to answer for being seen as the "bad guy" on a minor share of a minor project with a OTC listed partner. Hope I'm wrong on this.
Litigation is only going to get dragged out, with no one winning. It will be near impossible to find another partner willing to step on the toes of our current partners in the current oil market. Just not worth the hassle to anyone. If you think it's laughable all the assurances our current partners want from ROG, imagine what assurances a new partner would before litigation is settled and appealed multiple times.
Oh well. The saga continues....
Stena drillmax spotting from a spotter on the ground.
Translated page: http://bermaxofotos.blogspot.com/2013/04/stena-drillmax-regresa-de-nuevo-pruebas.html
nice photos to pass the time..
It would be a stretch to support your statement "New Directors Have Actually Been Very Successful". While Mr Hayden appears to have a a good amount of success (if the Empower nominee is the William Hayden associated with many Ivanho projects), He is primarily associated with mining projects. In honesty, I can find no record of the former Ivanhoe Agadem Petroleum listed in the Empower presser.
With the very poor performance (from a shareholder standpoint) of the companies the other 2 nominees serve as directors for, such as; WAI TSX-V http://www.newswire.ca/news-releases/west-african-iron-ore-announces-corporate-restructuring-and-23-million-financing-516973801.html; and MCWEF
http://www.otcmarkets.com/stock/MCWEF/news, They really seem to have the same type of "problems" they accuse our current board of.
My .02 .....
In the information age it fortunately/unfortunately doesn't take long to unravel a real proxy fight from a weak front for one.
Besides the previously posted items we have..
From Bloomberg, Dr. Gerald Bailey profile:
"Dr. Bailey received his BS Chemical Engineering from University of Houston in 1963, MS in Chemical Engineering from the New Jersey Institute of Technology in 1970 and Ph.D. in engineering from Columbia Pacific University in San Rafael, California in 1991."
Credit to LongHDY on the IV discussion Group for the following on Columbia Pacific University:
http://www.quackwatch.org/04ConsumerEducation/News/cpu.html
(edit)
OK I couldn't resist another...
The worldwide headquarters for Bailey Petroleum LLC
Looks like a single wide from google earth.
https://www.google.com/maps/place/16719+Scamper+Ln,+Crosby,+TX+77532/@29.9291059,-94.9977578,169m/data=!3m1!1e3!4m2!3m1!1s0x863f56e088c284bd:0xd996b6ac6b62fef3
On another front...
STENA DRILLMAX
Position: 9° 08' 51" N, 17° 03' 58" W
Last seen: 2015-12-02 20:44 CST
Location: North Atlantic Ocean, GN
Destination: LAS PALMAS
ETA: 2015-12-09 06:00 CST
2015-12-0220:18 CST Destination changed New destination: LAS PALMAS
2015-12-0220:18 CST ETA changed New ETA: 2015-12-09 12:00 UTC
Soooo I know they aren't drilling in Phoenix so I'll presume this is the canary islands. Unusual move leaving the TEN fields.
(of course these reports are not always accurate.)
Edit: Coordinates indicate passing right by Conakry. Wave as you go by...
Well that would be humorous as sh!t under any other circumstances.
Thanx!
Meet the nominees:
I will wait to see what they come up with for the proxy but geeeez.
Dr. Gerald Bailey, while he has a wonderful CV, he currently seems to be a professional board member. Including such ventures as MCW, a Canadian listed venture involved in new technology oil sands extraction in Utah. A company with a US$25 million market cap, producing 250 barrels a day. (that's not millions or thousands folks) The facility: http://content.equisolve.net/_ef467ba42ef2bd226425c097a27eb85f/mcwenergygroup/db/206/2154/image_slide.jpg
Mr. James Wilson, I like this excerpt "Mr. Wilson is a director of a Republic of Guinea focused exploration and resources company where he was an integral part of the group that led the company through to its successful and over-subscribed IPO."
This company has no name worth mentioning? Presumably West African Iron Ore Corp.
Here's the mastermind behind this proxy fight:
http://www.yatedo.com/p/James+Wilson/normal/3a7af8e11679911f62d7d6c5c06048ea
At least he is familiar with 10:1 reverse splits... http://www.newswire.ca/news-releases/west-african-iron-ore-announces-corporate-restructuring-and-23-million-financing-516973801.html
Mr. William Hayden: Unfortunately currently escapes my google radar due to his rather popular name shared by many. Possibly more later...
It's a shame, actually. I had thought maybe this would prompt some share price action, but doesn't seem like a serious effort.
as always only my opinion.
Smells fishy but just MHO. So this group has no dog in the hunt other than it's claim to the "Support of Other Leading Shareholders". Sorry, too vague to convince me. Primarily because there are not many leading shareholders as broadly distributed as the shares are. And if they are in bed with the Watt's and their other ventures well....
I can easily picture a group that has found a company it perceives has an unhappy shareholder base, no debt, and some free cash. Easy pickings to come in with your own board members, place a new CEO, and dilute the $%*# out of the company by financing new ventures or funding ventures they already hold through their own finance group. (Gee, we could buy into derisked properties from their other holdings, bloating their share price for them. Sounds swell.) If things don't work out, move along down the road, no risk to anyone but the current shareholders left holding the bag.
We'll see if any shills show up to hammer down contrarian opinions...
Once again just a gut reaction, and totally my own speculation and opinion.
Tullow trading update Nov. 11th
HDYN proxy out on Nov 13th
SH meeting Dec 15th
Yea, I think things will start to become clearer soon.
at least hoping soooo
GLTA
I think one of BigMike's concerns may have been the "ultra Depp Water" classification. By US standards 9,000 ft is Ultra Deep (Fatala appr 9,500 ft), but I believe the English/European threshold is 3,000 meters with Fatala shown as 2985. But at that depth it's really splitting hairs anyway. With Tullow's experience I don't think it's a barrier.
That said, I'm still under the belief/delusion that Tullow is contractually obligated to make a best effort to drill. It certianly looks like that is the plan based on recent comments and events.
Nice to have something drilling related to talk about for a change...
I appreciate the importance of getting the news out, but why drop this little nugget at the close before a long weekend?
C'mon guys, "bad news on fri, good news on Monday" now repeat it back.... lol
Another discovery in Ghana.
South Tanno gas find. Kinda adds insult to injury fwiw...
http://news.yahoo.com/ghana-assessing-commercial-potential-offshore-gas-discovery-131150518--finance.html
It's a tricky situation:
-If Tullow were to drill their shareholders would lynch the mgmt for blowing money on a project that would require billions of captal dollars to develop. Tullow would be unlikely to be able to monetize a discovery because, frankly who would want to farm in with oil at this level.
- On the other side of the coin (for Tullow) a large discovery would increase reserves and help with valuation and maybe help fend off unwelcome takeover.
-The low price of oil makes it less likely Guinea would do anything arbitrary as far as pulling the concession. They know that they have better odds with what they've got than trying to market an unproven field in this situation. Besides, they've got real problems to concern themselves with right now.
-It's going to take time to resolve all the current issues. While any oil that is there has been there for millions of years and isn't going anywhere, HDY is not in that same situation.
-Wondering if anyone is considering taking the company private? It would be a better situation from a regulatory and timing standpoint. But with only a short time left to drill it might not be a good value proposition.
One certainly has to think somethings afoot. Or someone wants everybody to think that.(?) 1mil sh before lunch after a couple weeks of utter apathy. Things usually don't turn that quickly without some motivation.
I'm already in this time, so I can watch and see what plays out.