The Guildford office is owned by a company owned by a bloke named Rupert Cole, I would think another of the offices in the complex has become available & that is the reason for the advert.
Please don't give ROG a hard time, his contribution was valued when the Rowan Norway was being prepared at Dundee prior to the ewt, his description of the seagulls flying upside down will always be remembered
"Lease and Contractual Commitments At 31 December 2012 the Group had lease commitments relating to business premises of £328,692 (31 December 2011: £423,750). The decrease in commitments when comparing 2012 with 2011 is in line with the remaining lease commitment on XER’s existing Aberdeen business premises."
The website says this about the Aberdeen Office:
"XER previously operated from serviced office premises in Banchory, Aberdeenshire, from 2007 prior to moving to 2 Queen’s Gardens in May 2011" ie there is a lease.
It says nothing about having a lease in Guildford. It also does not say however, that they are serviced offices there. Of course, no business wants to advertise itself as operating out of serviced offices, as it looks "here today, gone tomorrow".
It seems a reasonable inference from the above, and from the info on the web, that No 1 Farnham Road is indeed a serviced office that they may leave as and when they please.
1 Farnham Road, Guildford, appears to be a 3 floor building wholly of serviced offices. That means it is possible to leave at almost a moments notice; ie no lease. There would seem to be some space available now on each floor: http://www.showcase.co.uk/property/1-Farnham-Road/South-East/Guildford/7590947. It is impossible to tell whether that might include xel's existing licence. Of course, if someone had the time, and/or the inclination, I am sure it would be possible to find out from the estate agent if xel were in the process of leaving. Very talkative sorts, estate agents, ime.
The oil in ground is worth less than when it has been produced and marketed.
The owner of Bentley will make Approx $30 per barrel based on current oil price. (after tax)
They can buy a share of the field for less than 50% less.
Simply economics - buy the raw material asset, spend costs up from to develop, have the know how and sell the oil for a good profit. 50% margin makes it worth the time and the effort. Many of billions of dollars profit to be made out of Bentley. It's going to take time to sort the best deal.
tax concessions are also a significant factor of course, with Bentley qualifying for an $800 million 'tax break'.
Nov 2013 The North Sea's largest British independent oil producer, EnQuest Plc, will pay no tax until 2018 after its decision to go-ahead with the development of a second new field of heavy oil on Friday.
The ultra heavy oil tax allowance Enquest will tap for its two Kraken fields will trigger two 800 million pound allowances, giving the fields tax relief worth 512 million pounds ($824 million).
The project has 137 million barrels of oil equivalent (boe) in gross reserves, increasing the company's total reserves by almost 50 percent compared with the 2012 year end.
What is the point of multiplying $100 US X 250 million barrels when the RAR clearly states that the NPV10 value is only $8.80 per barrel ? That figure was obtained using Bentley oil at $113 per barrel and not $46 Brent, which would mean that Bentley oil is worth 12% less or about $41 per barrel. Use the per barrel costs associated with their estimates and you will find them above $41. Again, this is over 35 years, not all at once and does not include many expenses. If it were as you say, this would already be developed. Why do you think that this has not progressed at lightning speed ? Your numbers are wrong, simple economics. Sorry if this affects your daily flip but this one is much more difficult to value than what you are preaching.
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