Details on MMT's Conference Call 24-05-2013That was quite the in depth conference call including the Q&A.
The wording and comments below are mine.
jwall
n.b. This material was originally posted on another BB [presently under maintenance so please be patient]. See link below.
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1] Because UMU is larger than anticipated and because of the now much larger production capability and facilities, the environmental assessment changed and is in for approval.
2] The pipeline is being installed. The agreement is seeing delays because of a third party. Shell is on board. Finalization is not impacting in field activity.
3] The route is somewhat fluid as, at times, existing infrastructure is seeing the pipeline being routed around it.
4] Loan is for field development & pipeline. What remains is a paperwork exercise. Have not drawn yet.
5] Wade says outlook is very good and there'll be a significant increase in reserves and production rate.
6] Existing expenditures will defer any tax situation for quite some time. [Chen asked]
7] One five year period for Pioneer status tax holiday. [Chen asked]
8] Marginal field for UMU's producing life. [Chen asked]
9] Line loss is a big issue and is being worked on by all operators, partners and government.
10] Recent downtime [past Qtr] was mostly to repair the very old line, some maintenance and some bunkering.
11] SALMAN asked about Startup & Capacity of line. Wade said September, but to remember that this is Nigeria so schedules are fluid depending on developments [or not]. Capacity is some 40-45k/d. MMT has present shutin capability and can produce into AGIP line some 12-13k bpd.
12] Cormark asked about losses for new line: Wade says to expect in the 8-9% area based on past numbers for that terminal.
13] Tony asked about 2nd rig. Wade says out to tender expect to evaluate 2-3 weeks from now.
14] Tony asked about the new marginal field bidding and Wade said that MMT has decided on what to bid and who their partners are including their existing partner.
15] Tony asked about the dividend. Wade said there will be a news release in [early] June.
16] Rick asked about any outages since AGIP line startup in April. Wade said that there had been a few days for routine maintenance.
17] Rick asked about catchup for the overlift position. The CFO answered that this is dynamic. MMT keeps nominating and delivers as much a sit can. The deliveries go to cover the overlift first and then towards the nominations. The overlift is expected to be cleared this summer.
In closing, Wade said that updates will be issued regularly when material information is available.