I rather ruled LGO out because they have withdrawn from the Take Over Code, which narrows the options down. The water flood is attractive and why I think they will get an equity investment because a ROI is more likely with water flood.
TRIN assets would come with no debt attached and leave RRL to optimise the financial structure of an offer.
Touchstone are the most attractive, particularly if post the transfer of TRIN assets and debt service is covered by current oil production.
Interesting interview, listen towards the end it seems that Iran have been selling oil on the market through Iraq for over a year now and that the world has turned a blind eye to this apparent breech of sanctions so that their ability to increase production significantly beyond that level is "many years away" so the 1 million extra Iranian BOPD that has been haunting the market is just not realistic. It is also being predicted that the US production this year will drop by around 500,000 to 600,000 BOPD too. http://video.cnbc.com/gallery/?video=3000500872
The offer was just over $20M, but will be adjusted at the time of close, the exact amount will depend on close out terms. Touchstone have published various NPV calculations on the TRIN assets to demonstrate the value that can be derived.
I’m still of the view that the original Core $20M bond was related to the TRIN asset acquisition and suspect that this has still to be played out.
I don’t think LGO is the target as this would not give LGO sufficient Rig utilisation.
Interesting reserves update from Touchstone which includes lifting costs and the lower costs that are achieved through water-flood. Costs exclude the Trin assets as the reserves report is for 2015. If they close on the TRIN acquisition costs will reduce further.
Seems to have doubled topped at 0.40p and on its way down.... Perhaps RRL management are considering scooping up some of their assests as part of the recently announced aquisitive strategy.... Anyone here know anything about LGO assets and whether and of them would be good to boost rrl production and its balance sheet?
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