Hi Phil, I didn't get back from Spain (ironic really) until late on the Wednesday and had too much catching up to do with the business. Had to postpone a meeting in London too for the same reason, otherwise I would have been there.
I've been looking at the options for Anterra given LO's position. Looks like it will have to be an equity sale rather than asset sale. With an NPV of $30M, it doesn't look to be a good buy from a shareholders perspective but good from a strategic partner view as the NPV is calculated after the extraction costs and taxes.
$20M buy of which $10m for debt and $10m for shareholders, leaving just $10M of value at current poo. Clearly some benefits if the POO returns to $60 plus.
Given that the sale can only be concluded after a conversion (hence shareholders vote slipped) I am going to wait until after the transaction rather than take a punt now.
Oil prices stabilized on Friday after OPEC's decision this week to cut crude output in order to rein in a global glut fueled the biggest weekly rally since 2009.
After the deal was announced on Wednesday, the market's focus now shifts to the implementation and impact of OPEC's first production agreement since 2008, which will be joined by non-OPEC producers.
inRead invented by Teads
Crude prices on Friday were pressured by data showing oil output in Russia rose in November to a post-Soviet high and news that Moscow would use its record November oil production as its baseline when it cuts output. Front-month Brent crude futures were up 20 cents at $54.14 per barrel by 11:26 a.m. ET (1626 GMT). The contract was up around 14.5 percent this week.
U.S. West Texas Intermediate (WTI) futures rose 23 cents to $51.29. They were on pace for a gain of about 11 percent.
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