More Interesting Statement On Perisai

Since I had blogged too few times on Perisai, I was most interested to read Star Biz article Should Perisai deal be deemed an RPT?

One passage caught my attention.

• To be noted is that Perisai has clarified the following - that Garuda Energy was made up of “an old jack-up rig” when it was disposed to Nagendran in 2010. The rig then was without any contract and, furthermore, Perisai did not intend to take on any construction risk to rebuild it into a mobile offshore production unit (MOPU); hence, Perisai had decided to dispose of the rig in 2010; Garuda Energy will also own a MOPU that is expected to have a certified 15-year life span and that one of the conditions precedent to the completion of the deal is the receipt of the charter payment from the major oil company.

Don't understand the part in red bold.

The rig acquisition was announced on Dec 2009: PERISAI PETROLEUM TEKNOLOGI BHD ("PERISAI" OR THE "COMPANY") ACQUISITION BY GARUDA ENERGY (L) INC AND HUMMINGBIRD ENERGY (L) INC, BOTH WHOLLY OWNED SUBSIDIARIES OF PERISAI OF TWO JACKUP DRILLING RIGS FROM THE OFFSHORE DRILLING COMPANY AND CLIFFS DRILLING COMPANY FOR A TOTAL CASH CONSIDERATION OF USD10,000,000

From the word file attached: Announcement_Garuda purchase of rigs 14 Dec 2009 Final.doc

• 4. RATIONALE FOR THE ACQUISITION OF RIGS Discovery of large oil & gas fields are becoming rare. In order to maintain current production levels, oil and gas field owners in the Asia Pacific region are looking at viable solutions for developing marginal fields.
  
  With the recent increase in crude oil prices, there is a need to fast–track field developments that have been put on-hold due to global credit crunch over the last one year or so. Oil and gas field owners are looking for low-cost solutions to develop marginal field as quickly as possible. The Acquisition of Rigs will provide a platform to convert the Rigs into MOPSUTM” and to generate robust earnings by hiring them to these oil and gas field owners.
  
  The acquisition is synergistic to the evolved activities of Perisai to serve as a one stop centre for its planned marginal field development and deepwater activities. The conversion will take advantage of the current low steel prices and fabrication rates and provide an avenue to bring in the profits earlier than anticipated.

There. From Perisai own words the rigs will provide a platform to convert them into MOPSUTM.

That was Perisai rationale for buying the rigs.

The rigs acquisition was completed on April 2010.

PERISAI PETROLEUM TEKNOLOGI BHD ("PERISAI" OR THE "COMPANY") ACQUISITION BY GARUDA ENERGY (L) INC, A WHOLLY OWNED SUBSIDIARY OF PERISAI OF A JACKUP DRILLING RIG FROM CLIFFS DRILLING COMPANY

• The Board of Directors of Perisai is pleased to announce that its wholly owned subsidiary, Garuda Energy (L) Inc (“Garuda”) had on 28 April 2010 completed the acquisition of the jackup drilling rig namely Hercules 191 from Cliffs Drilling Company

A week earlier, on 21 April 2010: PERISAI PETROLEUM TEKNOLOGI BHD ("PERISAI" OR "THE COMPANY") SALE OF SHARES BY NAGENDRAN C. NADARAJAH OF ALL HIS DIRECT AND INDIRECT SHAREHOLDINGS IN THE COMPANY TO HCM LOGISTICS LIMITED

• Further to the announcement on the sale of shares by Mr Nagendran C. Nadarajah ("Nagendran") of all his direct/indirect shareholding in the Company to HCM Logistics Limited ("HCMLL"), the Board of Directors of Perisai wishes to announce that the Share Agreement dated 9 April 2010 between Nagendran and HCMLL has been completed.

Not too many days after the rigs acquisition was completed, on 10 May, Perisai annnounced they were disposing Garuda! PERISAI PETROLEUM TEKNOLOGI BHD (“PERISAI” OR THE “COMPANY”) Proposed disposal by Perisai of the entire equity interest in Garuda Energy (L) Inc (“Garuda”) and Hummingbird Energy (L) Inc (“Hummingbird”) to Nagendran C Nadarajah for a cash consideration

That was May 2010.

And its now April 2011.

errr... how?

Let me get this right.

First Perisai bought and said "The Acquisition of Rigs will provide a platform to convert the Rigs into MOPSUTM” and to generate robust earnings by hiring them to these oil and gas field owners". Then days after the purchase was completed it said was sold.

Today, I am reading that Perisai is now saying "Perisai did not intend to take on any construction risk to rebuild it into a mobile offshore production unit (MOPU); hence, Perisai had decided to dispose of the rig in 2010."

Huh? Huh? and triple huh?

And now, 10 months later, Perisai wants to buy a converted MOPU??

Comeon!

ps: He will be paid partly in stocks, which are priced at 65 sen!

How much is Perisai now?

What a capital idea to push Perisai much higher.