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If the Innis situation continues at 50-50 what can Cerp expect
Recoverable reserves of around 8.9m less the 10% of the pilot, on today's price of $26.79 would give around $11 per barrel after costs and taxes.
Overall there would be $88m in revenues less 10% untrievable would leave approx $80m divided by 2 =$40m each.
A $4.2m cost to buy for a potential $40 seems fair to me even at these low oil prices.
At Saffron the potential revenues at $26.79 of 11.5m recoverable reserves is $253,000,000 after costs and taxes :)))))
Hi Zebra
I hope Prd do buy it even on reduced sums $2-3m at Saffron will make far more than at Innis.
I think Prd will do ok at Innis overall but not with the pilot, the recoverable barrels in the Herarra 2 pilot zone will only just cover the initial set up costs let alone the buying costs.
Will be interesting to see a new CPR report on what recoverable barrels are still there.
Could a deal be a possibility with a lure of joint venture on Saffron? Who knows, we don't get told anything
ATB:))
hi bamps
The benefit to cerp is the cash injection only. I do feel the 4.2mil can be renegotiated and you're right CERP don't have to sell. Latest RNS says Co2 project is still profitable at $20 oil. It's likely their costs have probably come down. So I wouldn't quote the old figures as facts. Too much has changed.
Hi Zebra
The clause in the agreement is $4.2m , Cerp do not have to accept a lower figure.
The way it is at the moment the revenues after taxes, costs etc are too small to share 50/50.
Even at the $60 WTI levels revenues were only $30 and then less $10 per barrel.
Again I would ask what benefit is it to Cerp?
@bamps the 4million ask was negotiated at a much higher oil price. In the current climate it is no longer worth 4million and so PRD will likely try to get the price down. For cerp it is a cash injection, perhaps 2 or 3 million?
Similar to how posters here are optimistic the extension is to agree favourable terms considering oil prices have tanked.
That is If PRD still wants to purchase Fram. The board is mumbling about other opportunities in Trinidad.
Hi Hertstrader
The CO2 project might be good for PRD.
What are your thoughts on what good is it for Cerp?
If you have read my posts recently you most know I don't think it is especially at these low prices
The only benefit to Cerp would be a sell but not sure where they going to get $4.2m from.
I see LLL trying to discredit this but he can't tell me that the lenders didn't know of this clause, another pointless post from him
ATB:))
PRD now 16% up. Possible good news on trinidad with the CO2?