I always have a quick look through someone's previous posts, if I am not sure of what their intentions may be. I thought that it was a fairly genuine question. I used to always wonder on the differences between the values of different oil companies. It is so hard to compare them. They operate in different countries, operate under different laws and governments, have different assets, different equipment and staff, etc.
3cardbrag; as others have said you do need to compare like with like. I have previously posted on this, making the comparison with the sale prices achieved in recent years for Wytch and Singleton in the UK - both of which were/are mature onshore fields in decline but with potential to refresh production. This is just like Goudron with two differences - you should probably slightly discount Goudron for being Trinidad rather than UK, but Goudron has much greater growth potential (shown by the first few wells). The cheaper of the two sales (Wytch) fetched $40k/bopd. On this basis, allowing 3000 bopd (which seems safe if conservative) LGO supports about 4p/share when adding a bit of value for other assets.
As others have said - Goudron is not shale. And there are still 20+ wells to go.
I don't mind but when a poster pops up from no place on LGO with this sort of post it makes me wonder what is the motive, guess its because of all the rubbish we have had in the past, Maybe I am becoming too suspicious lol
Nomoney, I don't mind those questions. The answer just goes on to prove how good LGO is compared to other small oilies. The best around, in my opinion. Operating in a stable country, having very low costs, and with an excellent (and trustworthy) oil man at the head of the company. Not too many others can lay claim those three factors.
LGO have very low lifting costs. I think that if you compare the two companies, the cost of LGO getting a barrel of oil out of the ground is significantly lower than that of HAWK. If WTI stays around $60 or so, HAWK are really going to struggle. LGO will continue with Goudron and will manage fine. That is a big reason for the difference.
Not unreasonably, this chat board is very keen to link BOPD to the current m/cap but suggesting that the m/cap is way too low. As a comparison, Nighthawk is producing roughly the same bopd but is around 75% of LGOs m/cap. Appreciate that HAWK are US shale oil producers but both companies claim to have good prospective fields, which makes me wonder where this huge upside in SP is to come from.
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