Roundtable Discussion; The Future of Mineral Sands. 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.
It said they bought the company that owned 40% of Zama for 500m, I could be wrong, but im thinking the said company could have had debt etc ? ~$430m is what ive seen touted for the PMO stake
CroftOriginal - That sounds fantastic to me, but where do you get that 400m figure from for such a small percentage? The Zama sale for PMO is 15% of a much bigger field than Sea Lion, and the only benchmark we have was the DEA purchase of 40% of zama for about 500m ?
Shouldn't we expect at least half of this for 15% of sea lion so maybe 200m? And in usd not gbp....
Would love to know where I am wrong!
I do indeed have fat fingers but I'd like to qualify that and say that it's only the case in relation to my iPhone's microscopic onscreen keyboard.
I'm just guessing, as is everyone until we hear official news, but I'd expect PMO to be looking to farm down between a 10% to 20% share in Sea Lion, when I say % I mean of the whole of Sea Lion.
That would result in a 50:40:10 or 40:40:20 split for PMO : RKH : ???
I don't think RKH are involved in this farm down at all, certainly no indication of that being the case and they would have had to announce this if they were involved.
So a guess of £400m for a 15% stake would mean a valuation of RKH's 40% of Sea Lion would be worth £2.30 a share plus our development carry plus cash in bank plus the rest of the F.I. acreage (and by rest of acreage I mean in particular the Isobel complex).
I don't post much but yesterday was a very positive signal from PMO publicly showing their commitment to developing Sea Lion as part of their strategy going forward and I think it will actually have a more significant effect on the RKH shareprice than it ever will on PMO's.
RKH really do have huge potential but they gave away the keys to PMO years ago along with all control of the pace of development.
The next 12 months should be very interesting.
It was pretty clear he meant "say", but 15% per day will do I guess, its the same thing really.
PMO RNS I found positive, confirming they are going to use Zama for cash, much needed cash. Why is this still only ~20p ?
RKH RNS was rubbish and I don't understand why they weren't more upbeat about PMOs RNS ?
buffit, my take on croftoriginal's post was that it would be for 15% of the oil produced per day.
No trades for the last three hours, am I missing something?
Cubane
Well deduced Watson ( Auson ). Thanks.
buffit,
Perhaps he has got fat fingers try changing the d in day to the next letter on the keyboard to the left which is the letter s
OK thanks, but still don't understand the " day " bit.
buffit,
We have 40% plus $335m development carry from Premier, and $10s milions cash in bank, no debt.
" offer of £400m for a day 15% stake " - what does day mean in this context ? Thanks.
CroftO' ,
15 - 20% farmin($400m - $500m + proceeds of Zama sale !
Could be Plan B .
Sounded like they had a buyer(s) for Zama and the equity partner was talked about when they were trying to purchase the North sea assets. Large investments funds have been known to invest directly into oil projects.
I was watching the fall from 23p ( live trade data ) and I thought at the time the whole thing looked orchestrated. There were some very chunky trades which to me looked like someone accumulating, all the while the SP being held down. There were some large sells at 22.75p which match in number with some large buys a week or so later on at 18.25p Just my thoughts, they are free so take em or leave em.
Years ago Tosca Fund used to trade this up and down very actively.
This will drift along and rise slowly until news surfaces about a farmin valuation, at the point there will be a revaluation, say that we hear talk of an offer of £400m for a day 15% stake in Sea Lion, this will mean that the RKH 40% has a value of over £1bn plus some free caryy and cash in bank plus the rest of the acreage which is as yet unexplored or unappraised. Some of us already expect Isobel to be even bigger than Sea Lion.
But until then this will drift along, only actual news will see this rise significantly.
….. Cheap as chips.