George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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NDA? that's another breaking news
TT signed the NDA he's not even allowed to bill them in case anyone finds out
tsbs, nah we don't need anything to pay for court cases, they just ignore the lawyer bills its all fine!
LA LA LA we cant here you, nothing to see here ;)
I asked TT if he could confirm FRR have 240 employees last week and he wrote back he has no idea and couldn’t help with my query.
If anybody was to have been discovered leaking information, I'd think it would be their last job in the industry..
I don't see it
I'm still very sceptical that if all this oil production was happening it would be in the public domain or at least have been leaked by someone on the ground. There are apparently 240 FRR employees and god knows how many BP. I know I know its all down to NDA but to be honest I think that's ******
stupid question, of course he has!! have you seen is detailed calcs?
I hope he's right, I'd be a very very happy man if he was!
Hey MadP, 19 billion barrels I take it.Have you taken into acc a recovery factor?
Links for the previous post.
https://www.reuters.com/article/us-bhp-divestiture-bp/bp-pays-105-billion-for-bhp-shale-assets-to-beef-up-us-business-idUSKBN1KG34V
https://en.wikipedia.org/wiki/South_Caucasus_Pipeline
https://en.wikipedia.org/wiki/Baku%E2%80%93Tbilisi%E2%80%93Ceyhan_pipeline
https://www.dollars2pounds.com/
Block 12 has 19.1 billion barrels of oil equivalent with costs of less than $12/bbl, but very few wells producing, although there are already 1204 wells drilled, some that are suitable for side tracking. However, the costly part of the infrastructure, the transportation pipelines are already in place. BP owns 28.8% of the SCP natural gas pipeline and is the operator and BP owns 30.1% of the BTC crude oil pipeline (Exxon owns 2.5%). The gathering pipelines (see link below) which are much shorter and smaller in diameter , and therefore very much cheaper will need to be built, plus the processing facilities.
https://earthworks.org/issues/gathering_pipelines/
BP bought 4.6 billion barrels of oil resources in the Permian that's already producing 19k bopd, but with costs of well under $50/bbl for $10.5bn. Well under $50/bbl could mean more than $49/bbl or more than $40/bbl, therefore I will evaluate using both figures. The sale went through in July 2018 when the oil price was around $68/bbl for WTI. Therefore using the two figures for costs/bbl = profits of $28/bbl or $19/bbl. Multiplied by the 4.6 billion barrels = $87.4 - $128.8bn of profit. Therefore, the $10.5bn paid for the field is 8.15% - 12.01% of the profit for the field based upon the PoO for WTI at the time of the sale.
Block 12 has a conservative $48/bbl profit on the recent Brent of around $60/bbl (Block 12 sells at a $5 premium). 19.1 billion barrels x $48/bbl profit = $916.8bn. Just using 8% as the top buyout parameter = $73.34bn = £58.09bn at todays rate of $1 = £0.79. This would give a share price of £3.69. However, as money needs to be spent on cleaning and side tracking wells, gathering pipelines and processing facilities, then the figure will probably be less.