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Blimey maths lessons required?
The field will be pumping out 80k bopd in 27 max output
if that deal went through RRE would 4 bag at least
near to 100k bopd
1 bill is peanuts with that amount
There are ways and means ... for example, RRE could easily offer a discounted future cash flow model where siccar point get 50% or more of the profit but RRE hold 100% liability until it’s paid off. Therefore no debt! RRE May need to put £200m or so down up front but that’s about it... and we have that in the petty cash box by the staff loos.
maybe you have Rockrose confused with a lifestyle AIM tiddler with no cash headed up by Bertie Bull****ter pretending to be serious about looking for oil in Lifestyleponzistan.
Yes, debt! But I would bet there would also be a share issue element which is the bit I don't like - the kiss of death for small oilers.
sorry you beat me to it
No listen to the core finance Malcy interview the can borrow up to 1 billion they will not dillute at all.
Reserve based lending. Standard at this level
Was just about to ask the same question Roth
The big question in my mind is how RRE would fund a £1.2 billion acquisition? Would this mean a big share dilution at a discounted rate? I suspect recent share price weakness may be down to fears of a discounted rights issue combined with taking on a lot of debt!!
North Sea oil producer Siccar Point attracts bids of up to $2 billion: sources
Shadia Nasralla, Ron Bousso
LONDON (Reuters) - Bids for North Sea oil and gas firm Siccar Point, backed by private equity groups Blackstone and Blue Water Energy, came in at between $1.2 billion and just under $2 billion, according to three industry sources.
Bidders in the first round, which ended on Nov. 7, include EIG-backed Chrysaor, private equity fund HitecVision, North Sea-focused oil and gas group RockRose and Norwegian oil major Equinor, the sources said.
Chrysaor is seen as the front-runner in the process, with the highest bid for the company of just below $2 billion. Rockrose’s bid came in at around $1.2 billion, according to the sources.
Siccar Point’s owners have offered the entire company for sale as well as five separate asset packages. HitecVision bid for particular assets, the sources said.
Equinor placed a bid for the whole or part of the business, possibly in partnership with Canadian oil and gas producer Suncor Energy, they added.
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Siccar Point became a major North Sea player after acquiring OMV’s portfolio for $870 million in January 2017. Its owners have not disclosed how much they have since invested in the company.
Consultancy WoodMackenzie has valued the portfolio at about $2 billion.
In a presentation at an industry conference in London last month, Blue Water said private equity firms typically aim for two to three times return on capital invested in around five years.
Siccar Point is wooing potential buyers with just under 600 million barrels of oil equivalent (boe) in resources and reserves, including more oil than gas, a sale document showed.
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Such yet-to-be-exploited barrels can be attractive to some of the private-equity backed firms that have bought aging North Sea assets from oil majors in recent years and are looking for future growth ahead of a potential stock market listing or sale.
Siccar Point sees its output reaching about 80,000 barrels of oil equivalent per day (boed) by about 2027 from just over 10,000 boed currently. Beyond this, output will mainly be boosted by the Cambo development north-west of Shetland.
Among other smaller stakes, Siccar Point holds 70% in the Cambo field alongside Shell, 11.8% in the BP-operated Schiehallion field and 20% and 9% respectively in the Equinor-operated Rosebank and Mariner fields.