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Amerisur Share Chat (AMER)

Share Price: 12.70Bid: 12.56Ask: 12.66Change: 0.00 (0.00%)No Movement on Amerisur
Spread: 0.10Spread as %: 0.80%Open: 12.70High: 12.88Low: 12.58Yesterday’s Close: 12.70

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Posts: 298
Opinion:No Opinion
16 May '19
If there was a right of first refusal in the commercial agreement for the original farm out then its almost certain the contract contained a valuation mechanism probably based on CAPEX incurred, measured and estimated reserves/resources, average oil prices etc. Vectra either didn't have the CAPEX cash or wanted a quick buck hence the 2D seismic which limited the price to AMER to $19m but may have been substantially higher to GTE as a third party based on open market prices, GTE's assessment of resources could be substantially higher than AMER has put into the public domain.

I was mostly negative on the deal primarily because of the CAPEX requirements at a time when Oxy/ONGC drilling gets into its stride and they need to find 10mmbo 2P just to break even based on 100% ownership so 2-4mmbo exploration targets are high cost low reward (but ok if they're fill in or development wells).

Provided they can get permissions for the new drill pad and access road quickly then AMER could be drilling as soon as in Q4(?) and a new pad brings some advantages.
Posts: 451
Opinion:No Opinion
16 May '19
From the RNS, it looked like an agreed deal and the assumption therefore has to be made that a price was attributed to Put 8 within that deal. The timescale in which Amer came up with the price to pay, would suggest that to be the case.

GTE may simply have made the miscalculation that JW is too mean to pay proper value for acreage, always wanting "something for nothing": I was quite surprised that the "leopard" could change his spots.

The OXY deal obviously made a difference to our ability to splash the cash and there still may be a farm out: that came quite late on in any negotiations and may not have been factored in.
Posts: 1,221
Opinion:No Opinion
16 May '19
After JW's comments regarding the Vectra acquisition by GTE, it will be interesting to see what GTE finally agree on when it comes to the final price they pay for Vectra assets. I haven't seen any updates for a while now from them on this so assume they are in discussions with Vectra about the value left in the assets acquired 'after' PUt-8 has been stripped out.

I doubt it will be $19m lopped off.

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