Legends, are you valuing Kraken by the estimate of 137 million barrels multiplied by $50 per barrel ? From what I've read, development costs are estimated at £4bn or about $6bn.
Kraken's heavy oil is ~15 degrees API, certainly no where near the price of Brent. Brent trades at $45. I suggest you subtract development costs, then operational costs, then financing costs, before attributing a value.
You've valued something at $6.85 bn when in fact, with today's economics climate, it should be negative value.
and whether you really know something the rest of us don't is immaterial, even with the previous company announcements at events like the AGM, the fact is that until contracts are signed and Xcite have the funding to take Bentley to production (or a takeover) nothing in certain. I'm sure you don't need me to remind you of the only two certainties in life...
and yes, you put 2 and 2 together and get 5 over and over and over again. Your posting history is littered with predictions and assumptions that turned out to be wrong.
Interesting question LEGENDS. Kraken has FDP approval and is currently under construction for first oil in 2017.
Isn't that owned and operated by Enquest. Here's some questions for you.
1) What did Enquest's share price re-rate by upon FDP approval for Kraken 2) What is the current share price and market cap of Enquest.
NEL are no more in possession of information on Bentley than anyone else and before you discount what I say, be aware that I probably have rather more insight into what NEL does than you do, unless multiphase flow testing is your speciality.
The Kraken field alone has the potential to release an estimated 137 million barrels (50,000 bbls per day). Even at today’s low oil prices this one field is worth $6.85 billion pounds (based on $50 per barrel),” concluded Hunter.
So what will Bentley be valued at after FDP approval????
Do NEL know something we don't-
“This is very much a global issue and one which affects the UK, especially given that the Government has recently sanctioned the development of heavy oil fields, including Mariner, Bentley and Kraken, with the latter due to start production as early as 2016/17.
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