The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
For Apache it would be perfect, maturity of debt they have 2023 of part of the debt which they could cover from cash proably... They can restructure PMO debt bit more effective probably. They are present in North Sea and Mexico Zama has to be very tempting for them. 100k+ bpd for near future as well. International diversification as PMO has, is sth they looking for. Interesting to see how it plays out.
The most appropriate way to value PMO is to calculate the net present value NPV of future cashflows, PMO will insist naturally to go that route and if that is the case, the share price offer will have to be alot more than £1.20 IMO
''When one company acquires another, the stock price of the acquiring company tends to dip temporarily, while the stock price of the target company tends to spike. The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition.''
That explains Director buys at 50p
LoL so this is why BOD is aquiring more and more shares lately!?
Sorry also Andrew being BP and having now been aquired by PMO could have been the trigger??
The North Sea could be considered despite aging still a safe and profitable location for Apache
https://www.google.co.uk/url?sa=t&source=web&rct=j&url=https://oilandgasuk.co.uk/wp-content/uploads/2019/09/Economic-Report-2019-OGUK.pdf&ved=2ahUKEwi_yt6vx6_qAhXMiVwKHZx_AD8QFjAMegQIBxAB&usg=AOvVaw3ZvjxF__HOgnstMJAUr7ub
Rgds Sft
What should be considered is Apaches current and future reserve/reservoir status:
Libya does not look good for them
Permian may not be working out financially
Egypt?
North Sea how much production is left in the forties, still quite a bit, although they do not own the pipeline (Ilios) but latest i can find on production levels grom the forties rield is from 2013
"Average production from the field in 2013 was 60,000bpd.
The Forties field was earlier envisaged to be decommissioned in 2013 but the life of the field has been extended by an additional 20 years"
https://www.offshore-technology.com/projects/forties-oilfield-a-timeline/
So the question to ask with regards to Apache is, like all operators, they must continue to increase a portfolio that is always reducing. Rightly or wrongly how much did Shell pay for BG and for what reasons: Assets.
Total purchased Maersk Offshore solely to get hold of Culzean and is selling off the other parts.
So its not to crazy an idea if it also come with, Tolmount, Zama and SL
Rgds Sft