Thinking on investing in an oil and gas company... Think again...and think ONE HUNDRED Times more if you are thinking to vote YES on the Reach Energy Qualifying Asset.
A NO vote is a better option considering YALE university says that POST QA SPAC returns are TERRIBLE.
How TERRIBLE are they? Well according to SPAC ANALYTICS POST QA, SPAC shares go DOWN, and HAS NEGATIVE returns of 13.5 per cent.
Meanwhile here is the lowdown on how BAD the oil and gas sector has been hit. I shall let Rigzone do the talking :
TH Heavy Engineering, McDermott End Partnership in Malaysia
by Chee Yew Cheang
Monday, September 26, 2016
Malaysia's TH Heavy Engineering Berhad (THHE), a fabricator of offshore oil and gas facilities, announced Friday that the company and McDermott International, Inc. had entered into a framework agreement to end their partnership, established in October 2013, for cooperation in engineering, procurement, construction and installation (EPIC) projects in the country.
Under the framework agreement, THHE and McDermott agreed to mutually unwind the joint ventures (JV) in Berlian McDermott Sdn Bhd (BMD) and THHE Fabricators Sdn Bhd. (THF). THHE will transfer its 30 percent interest in BMD to McDermott, while the latter will transfer its 30 percent stake in THF to the Malaysian firm. As each transaction was valued at $17.35 million (MYR 71.73 million), there was no payment made by either party.
THHE added that it intends to terminate the joint ventures linked with the partnership under the framework agreement.
"With the dampening crude oil price and persistent supply overhang, THHE and McDermott had decided to pursue different business paths," the Malaysian firm said in the announcement, filed with local exchange Bursa Malaysia.
McDermott said earlier in October 2013 that the partnership with THHE would combine the latter's "experience, assets and knowledge of the domestic Malaysian fabrication market, and the knowledge and experience that McDermott brings with regards to large scale EPIC projects and offshore installation."
THHE explained that it has begun diversifying away from the upstream sector of the oil into downstream and other non-oil and gas businesses such as marine vessel construction and repairs, which will mitigate the recurring volatility of the upstream sector of the oil and gas industry and provide a more recurring income.
In a related development, THHE said it has a main fabrication order book of $32.1 million (MYR 132.5 million) and a minor fabrication crane manufacturing & repairs and supply of equipment order books of $2.3 million (MYR 9.4 million) as at Aug. 30.
The firm is also exploring various ways to raise funds required to complete the floating production storage and offloading (FPSO) Layang conversion works for Japan's JX Nippon Oil & Gas Exploration (Malaysia) Ltd. and to monetize and unlock the value of its assets to generate cash flows and improve its working capital.
