Investors query Fairfield listing
Sunday 11 July 2010
Institutional investors have started to shun next week's $500m London listing of Fairfield Energy, the North Sea oil explorer and producer, due to fears over a loan and future liabilities.
But Mark McAllister, the Fairview chief executive, believes the company has properly accounted for the decommissioning of the key Dunlin field cluster 500km from Aberdeen.
Bank of Tokyo-Mitsubishi, which has a 30 per cent stake in Dunlin, has given Fairfield a letter of credit for $270m to help decommission the fields in 2026. North Sea oil companies must have sufficient capital in place to cover future decommissioning.
Mr McAllister, who visited potential US shareholders last week, said: "We've had a number of independent reviews of the decommissioning costs and we feel comfortable with them and covered them well in presentations to investors."
But, a fund manager at an institutional investor said: "We're not going for it. They have a large decommissioning liability that would have a big impact on the net asset value if it were triggered."
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 3 Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
- 4 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 5 April Fools' Day 2015: The best hoax news stories from around the internet
Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
April Fools' Day 2015: The best hoax news stories from around the internet
April Fools' Day 2015 live: The best pranks and fake stories from around the world
University of Cambridge: Remains of 1,300 scholars are found under building
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...