Tiptop, I've heard Kosmos want to farm down what they have - so buying into Antrim equity is probably never going to happen. As Ducati rightly said earlier, you cannot afford to sideline projects - not that they are now in your control: they are not. Antrim are not the 'Operator' & will be at the mercy or whim of Kosmos - or whoever Kosmos flog their interest to. Our current rejected offer is at a decent premium to AEYs new value (considering the crude price). I'm prety sure we will present a further offer.........but it won't be much more generous. You guys shouldn't look a gift horse in the mouth. Honestly, we represent AEY investors best hope of realising a proifit in the short/medium term. But if you leave it to your board...........what is going to be drilled? How will your share price improve? Crude
One major word here
Totally agree mate, sound investors still all over this board, shows how eager they are , never going to happen at that daft offer. Two major words here. Ten Million
Money in the bank
With circa £10m in the bank and having just turned down a 3.50p offer from Sound oil, then its crazy why this is trading so low! I'm buying more on the dips. With very few shares in the free market, this will fly with any news. We are trading more than 50% below cash value . Madness in my opinion!!
The very fact you folks are still arguing your point ,even when we turned down that ridiculous Sound offer. Shows how valuable you think Antrims cash cow is. The horse has bolted people, unless you can come back with a sensible offer !!! Anyway, Kosmos could pay £10m for us and get themselves an extra 25% free holding in skellig, giving them complete control and monopoly over the block, with a stronger position in Ireland. That would be a great deal for them. They have given Europa a free carry in Ireland for 2 drills which could cost them $30m just for Europas share, plus they were free carried through seismics. That shows how much value is in the Irish assets and Kosmos are taking it very seriously. !!
Sorry for late reply. Companies who are currently producing will have large overheads on the ground and most require at least $70 to make a profit, some even more, especially heavy North sea oil. This very quick downturn in oil prices does not allow businesses to adjust and they end up over exposed to the market and very quickly fold. To further complicate matters financiers become wary and cut potential funding and loans .So by Antrim not having any production to worry about we can look for good projects which are in difficulties through funding and pick them up for cheap as chips. We do not want to take on the operational rights but a farm in to a project with production would be great. These prices are not likely to stay around for a long time as oil demand is high and the natural market conditions will cut supply as oil wells shut down, therefore regulating the price. That's if OPEC doesn't blink first !!! Regards Kosmos, well they are in a great position as they have hedged their oil prices at around $85 to safeguard against this very situation. also the rig which they have already got on hire for 3 years would be far too costly to cancel. This rig is earmarked to drill our Irish prospect (or Europa's) after its finished in Africa.They have vast amounts of capital and need to continue exploration so they will not be cutting exploration yet. IMHO cash is the most important commodity in such a market and we have a dearth. We need to cut management costs and downsize a bit to reduce overheads but I think this will happen anyway now we are not so exposed to North sea projects. Hope this helps answer your questions. :-)
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