difficult for me to ssee any significant uplift in RRR especially as any uplift will soon be killed off by further placing. how many shares we have now?
AB should put his own money where his mouth is. see WRES where directors owns near 30% of the company and just issued amazing RNS and in production from next year. thats right, generating cash. when will RRR generate cash?
The May 2015 forecast thought our mcap was £15.26m ( basically Kenya worth £4.82, Greenland £3.39m, Jupiter £4.23m and others the rest ). I remember D_S_ later in the year saying he estimated we were worth around £3.5m. We are now down to around £1.2m. AB has presided over this period yet he still claims a large salary. Amazing really.
Use the LM#20 as a guide well, RRR have 20% working interest and 14.4% net revenue interest. So IF the LM#21 comes out at 200 oil a day that equates to approx. 550k pa at $40 oil price. Louisiana light sweet crude demands a 10% increase to current WTI prices.
Any price increase in WTI over the next 12 months will mean RRR have pulled off a cracking deal for only $600k investment for two wells especially with the current RRR market cap.
1. The bit of LM21 and LM22 that RRR is taking belonged to Springer Oil and Gas (SOG) not NCT. 2. SOG have run into cash problems; they couldn't come up with their share of LM20. 3. On LM20 NCT took up most of SOG's share of the expenditure and has a 93% WI in the well as a result. 4. LM20 was a big bite for NCT. 5. LM20 came in ahead of expectations and the SWD facilities are inadequate to cope with the volume of water disposal. 6. There was a delay in the issue of the production permit for LM20. 7. I don't know for definite but I am pretty sure that the issue of the production permit for LM20 was conditional on the field upgrades at Shoats Creek. 8. The cost of the new SWD wells, pipeline, tank facilities, electricity and better security is a lot for NCT on top of the cost of LM21 and LM22 given that they have not got LM20 producing flat out. 9. The upgrade at SC will mean that LM21, LM22 and LM23 can produce flat out once drilled and permitted. 10. So NCT hasn't got the cash to fund its Mexico bids, its remediation plant, the SC drills and the field upgrades as well as picking up SOG's share of the expenditure. 11. If NCT did have the cash to do all of that, then RRR would not get a sniff of LM21 and LM22.
Anyway, don't listen to me, do your own research.
I won't be posting on the RRR BB again. I was just looking in because I wanted to see what the RRR shareholders made of the deal.
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