Totally agree with your take on government not turning there nose up,I honestly think they will be quietly throwing money in here and FOGL to make sure it comes to fruition in the coming years think of the revenue they will recieve !!
whilst I agree with your NAV on cash in the bank, this doesn't take into account the known reserves of which Premier Oil paid $1 billion for 60 percent. That to my mind values the remaining 40 percent at $666 million which at an exchange rate of 1.68 is about £397 million. If you add that to the £195 million you get £592 million which is twice the current market cap. This also doesn't take into account any exploration upside, which could be significant. So at the moment we are very cheap compared to NAV. The last valuation was for it to cost $5.2 billion for phase 1 which consists of extracting 293 million barrels which gives a break even cost of circa $17.75 per barrell !!!! I m sure the UK Government with its massive debt pile wont be turning its nose away from that tax take, especially if Scotland leave the UK and with oil price likely to rise in the years to come
Not one to post much or interact, mainly just sharing my opinion, useful as it may or may not be.
It is quite clear of the potential of RKH as a company but at this price there are two additional positives for investors:
- Market Cap = £275m, NAV = £220m of which £195m is cash (rough (but accurate enough) figures depending on source)
1 = Downside is in reality limited to 20% (which is the NAV) or worst case 30% (which is the cash) - This may be quite a drawdown for some but it is unusual to have this guarantee with many investments, even more so in a company with great potential (and let's be realistic RKH is mainly about potential at present) 2 = This makes RKH very attractive to a bid approach
Yes = I am invested from 97.5
I know I am maybe pointing out the obvious, but I have not seen this posted here after a quick scan of the chat, just thought this may help others.
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