They used that reason because they were told by their lawyers the other excuses would not wash. If they did not have enough info they had months previously to ask for more. They will lose on appeal and will have to pay our costs.
For those of you who followed the planning committee meeting you will be surprised to read the reason they came up with ... nothing at all to do with what was actually said by the councillors one of whom used to work for the EA...
Insufficient information has been submitted in support of the planning application to allay the concerns of the local planning authority with regard to ground contamination from both water run-off and the infiltration of water used in the development into water courses. The proposal would therefore have an unacceptable impact on local residents, the community and the local economy. The proposed development is therefore considered to be contrary to saved policies M23, DS13 and DS15 of the North Lincolnshire Local Plan (2003) and policy CS18 of the North Lincolnshire Core Strategy (2011).
Market forces Tovoc. Bargain is struck between happy seller and happy buyer. I would be happy at 25p and I am sure given the further potential of EOG the buyer would be too. E&P investments only make returns in that way - they seldom pay dividends.
@jusmasel If a strike is made by PVR, we all expect this to reflect heavily on Europa, by this point we should be drilling Wressle with Wressle online there will not be anymore money issues for the company! Holmwood will be close to an exploratory drill too, if this hits yet another boost! As this is all speculation and if all goes to plan don't you think 25p per share for the sale of the company is FAR too low? Personally, If all these scenarios pan out, I would be very disappointed to sell the shares at 25p, I would be happier with at least a pound per share! That said if any of our Irish Blocks came in I think we would surpass this easily too! IMHO
I think everyone was amazed they got the $70m to drill it, and pay its debts. Two things, 1, The Schlumberger report was quite compelling. 2, if debt was cleared, Barryroe, its other asset could come farmed out. even so ???
Yes - I was thinking $1 a barrel myself but shoved in 'up to $5' as I have no idea really. I would agree that COS for PVR is probably about 5 to 1 which makes it all the more remarkable that they attracted the investment to drill the well(s) in the first place. That is the bit I do not understand at all.......
A successful PVR well next year will be a game changer for the entire porcupine area off Ireland. Currently the licenses are worth a few hundred thousand each, decent 3d seismic adds a million or two, and excellent 3d , like PVR can value a license at $20m to $40m. I have no idea what Europa's is like but I gather its pretty decent. In that region SIZE matters greatly. If PVR hit a giant 1 Bill Bbl recoverable this would be valued at $1 a barrel. Not $5, those days are gone I think, I saw some $1 a b holdings off Nigeria. It would do two things for Europa, it would make farming easier, and on better terms. Their licenses there would easily be worth double of not treble their current value. Its a big if. I rate the chance of success in PVR drill at around 10% to 15%.
So why not hypothesize? What would Two successful drills by PVR mean to us? We would be the holder of the largest undrilled acreage in the Porcupine with multiple play types to explore. Our drill ready prospect which has a current rating of 5 to 1 chance of success would be derisked further. Our farm out options would surely secure a 25% carried interest with the possibility of back costs up front. Not quite sure how to produce a value on that other than a successful drill of a 400mm barrel prospect would certainly be worth up to $5 a barrel. ($500mm to EOG) We would be long gone by then - taken over in the mad rush to buy the whole company. So my best guess on valuation is down to how much it would take to buy the company outright from the current shareholders. I think that point will come sooner rather than later and mark me down for 25p a share. If the larger shareholders want to hold our for more well and good.......
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