The water flood appears to be an incremental extension of the existing pilot. Between now and first oil, cash will reduce, liabilities increase and existing production may decline. The oil will restore the current position, but adds no increase in shareholder value IMO
OPEC may have missed an opportunity to cut oil production, likely leaving oil prices stuck under $40 a barrel for the next five months, analysts at Goldman Sachs warn.
In a note out on Monday, the commodity analysts, led by Damien Courvalin and Jeffrey Currie, argued that not only is the oil cartel highly unlikely to cut output but even if it did, the move would do little to push prices higher.
“Given the likely time necessary to enact such cuts, the continued large builds in U.S. and global inventories and the fast pace at which U.S. Gulf Coast spare storage capacity is filling, it may already be too late for OPEC producers to be able to prevent another large decline in prices,” they said in the report.
A millionaire wouldn’t touch this. At today’s oil price if you extracted all the P1/P2 reserves and sold on the open market, subtracted the cost of recovery and added back current cash reserves each share would be worth just over 0.3p NPV. That assumes that they can get it all out in 8 years.
LO have invested millions and they can’t make it work.
You’d would get more by investing in grannie bonds with a lot less risk.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.