Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Roth1 you are missing the point, the actual number doesn't matter. The point is if you were to value the assets now after two unsuccessful drills it would be significantly lower than in the excitement of January when 'ocean of oil' was the phrase being banded around as well as valuations in the billions of dollars.
CPO5 for £250m is more like a fair price!
Nice article written after indico hit...a lot of oil.
https://www.hydrocarbons-technology.com/news/ongc-videsh-makes-oil-discovery-in-colombian-onshore-block/
I take it you mean $100m and not $100! But if you think that is a fair price for CPO5 you are way off the mark!
While we wait, here another conspiracy theory
After Indico, JW went to India to get the sign off for the rigs. ONGC made an offer to buy CPO-5 and Amer accepted it in principal.
ONGC needed time to get the money together (internal tender for overseas development fund) so they switched the drilling plan to Calao and Sol. Calao was always a strange choice looking at the seismics. Amer *agree* as excitement at the time was high and they needed a period of stability for the sale to go through. Sure they needed to drill holes to meet license commitments but Calao and Sol were not optimal choices to say the least. Two more dusters would make the 'fair' offer more palatable to Amer's over excited retail investors.
6 months later, ONGC have progressed to have this financing available now https://economictimes.indiatimes.com/markets/stocks/news/ongc-to-borrow-2-billion-through-unique-overseas-debt-programme/articleshow/70894128.cms?from=mdr
In July, Amer get frustrated at the lack of bid progress by ONGC and start the formal sale process, (triggered by a weak informal offer) in order to pressure ONGC to hurry up and also provide justification that the offer is at market rates. ONGC being owned by the Indian Government won't want to be seen as overpaying.
ONGC win CPO-5, Amer for $100. Amer and ONGC can both justify the price is fair.