The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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 clarity, that's 100% of the old FOGL acreage & a percentage of the old DES acreage, after farm out.
BW
Since those days ("£5.40"), RKH now have 582m shares in issue,....no longer, does RKH just have the Sea Lion Oil Discovery,.....RKH also has, all of the old DES & FOGL acreages now,.....I see Sea Lion, as the start of Falklands oil development, although I originally bought back into RKH, for the arbitration result, I have since changed strategy, I'm now holding RKH (also BOR & ARG), for the full development, of the Falklands Oil Industry.
My change of strategy, makes it much easier for myself, to hold our full RKH shareholdings, for the arbitration result.
Those are my thoughts, PennyorPound.
BW
How much is a rig going to cost
https://www.rigzone.com/news/diamond_offshore_rakes_in_610_mn_in_second_quarter_rig_deals-10-aug-2022-169925-article/?ED_SM_FB=1
I think he meant on FPSO and contracts costs.
Yes, Rachel sidetrack was Desire going on a geological expedition, that is all water, or was it oil, under the bridge
Cubane
'Whilst I’m sure the Israelis will drive a hard bargain...'
What evidence do you have, POP and PD? They have settled for 65/35%. End of story.
Yes, absolutely. Seems another logical and sensible assumption to make. It reduces the possible annual profits down quite a lot though! :/
Whilst I’m sure the Israelis will drive a hard bargain, with inflation and energy prices rising I would expect Sea Lion costs to rise too.
May end up being $50/bbl breakeven for Phase 1 but still healthy profits to be had at $70-80 Brent.
I forget how many shares are now in issue. It certainly was 457million until recently. When (if) production happens, Sea Lion could possibly be pumping 30K barrels per day. What is it - $35 breakeven? = $40 per barrel profit if we take $75/Barrel as a possible (conservative?) price (we are looking at 5 years away - who really knows what the price might be then). That's $1.2M profit per day or an annual profit of $438M. Again, being conservative, we could say earning per share of 75 cents. At a P/E ratio of 7, the shares would be equivalent to $5.25 each - not so very far from the £5.40 you remember Orbit10.
Sadly, RKH won't get 100% of the pot though. But it could still value the shares at $2.10 equivalent. Maybe. So really, for LTH's, OM is a sideshow. Holding-out for production would be ideal, but there should be lots of good selling opportunities on the way there.
Thoughts?
Wasn't the side track performed by Desire ?. So long ago my memory has gone !
Have to agree pauld and LTT. If there is one thing we should all have come to terms with since the 540 pence days, it's disappointment. And yet here we all still are. Remember getting excited about the Rachel sidetrack :)
Forget OM. The world is entering a catastrophic inflationary period. Many ordinary people will die. RKH is one of the very few companies that can survive and is also an extraordinarily cheap investment. Sorry to paint a bleak picture
Have to agree pauldrayton, an outcome where we get nothing is as much on the cards as a £200m award. Hence why Sam did the fund raise to keep us in the game, now with a much better player than PMO. Sure there will be a blip down in the share price with no award, but it should be relatively short lived with any news from Navitas.
To be honest even £30m would be a win in my book, anything more will be the icing on the cake.
LTT
Interesting. Quite a few ‘Zero’ awards on there despite the process taking years so I think we can put to bed the argument that a loss for RKH wouldn’t have taken this long.
The shenanigans last year make me a bit uneasy and I wouldn’t be massively surprised at any outcome - I just wish they would put us out of our misery!
Less than 2 weeks to go now before the probable extension.