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I was combining two posters' comments that 10p was the most SOU would be offered and that they would have to take what they were offered.
I agree we you that 30-50p looks likely, but I don't see why it would depend on SOU having an alternative plan.
In your last paragraph, you seem to be saying the deal could be part cash and part farm out.
That's an interesting idea, but SOU seem to have decided on a sale.
LW - don't recall anyone saying Sound would have to take 10p if that was the highest offer
But it's a big question: what would Sound do if that were the best offer? And then, what do potential buyers think Sound would do if it were the best offer? If you're negotiating a deal you consider all these, no-one wants to pay a cent more than they actually have to
For the record I think Axewoundlicker's analysis was the most convincing, I think 30-50p is believable, but it does depend on Sound having a credible plan in the event of a buyers' strike
I also believe a deal may not materialise at all and we effectively lose the remaining value, or it could be very attractive to multiple bidders and go for £1 plus
Or some sort of deal where we sell a proportion of it for cash and continued drill costs, which may be very attractive
Shall we all chuck a £10 in and make a bid? At least we would know then that there is some interest? Trellis a bottle of wine would cover for you and Jezzie as he needs his spare cash to buy his spam fritters abd to keep his gas producing company afloat! JB
I was thinking of what we might get, not JP, Woodrow.
Should read 250k
Longwait.
If they were to take 10p James would have to settle for 1.5mil in wages and only 250o for his options. I really feel for him.
' so many are staring at the SP and rendering themselves completely incapable of objective thought.'
I actually read a comment today that no-one would be prepared to pay more than 10p per share for the whole of Tendrara and then another post saying that if that's all that's offered, SOU would have to take it.
Totally correct - 20-30% premium on current price if you're lucky --- its why I left like a scalded rat...
Good weekend to all. Goodnight SOU. I won't be th8nking of you at all until Monday. I WISH!!
I suppose it is one of the more difficult anagrams.
Shedulike,
When you live above a chip shop, chomping on spam and swilling Blue Nun (Liebfraumilch if I'm lucky) the current SOU share price only brings joy. That's how bad things have got. I'm bored of being bored as I watch rain drops trickle down my window.
I realised yesterday that Red Rum spells Murder backwards. Maybe somebody knew something?
Blimey one of the more surprising developments on this board is that Jez has become one of the more lucid posters :) Can't work out if it's because the general tone has hit rock bottom or not but well done on keeping your head while so many are staring at the SP and rendering themselves completely incapable of objective thought. Probably managed to either patronise or be condescending to (or both) to virtually everyone on here so not expecting any fan mail!! Suffice to say there are bigger political factors at play that will help us move this strategic asset, throw in the disturbances in the Gulf, Russian influence in other producing regions and I think complex world events might give us more than a handy leg up here.
After yet another week of radio silence and having to read angry posts from trapped investors, it calls for one thing................spam fritters and blue nun, with a dash of um bongo. The view from the rain drenched condensation windowed bed sit isn't improving I'm afraid to say!
I think Rummy is buried at the winning post at Aintree. You do know he is dead don't you?
Trellis,
It's wine-o-clock and the BBQ needs lighting. Wannabe 5 will be getting restless.
Enjoy the Bergerac and chargrilled pigeon.
JTF
The bidders aren't just going after the gas. Given Morocco's location and access to the European and African markets, there is a lot to be said for buying us for both strategic and political reasons, both of which you can't really put a price on. The Chinese will probably want a piece of what we have to offer IMHO. The Chinese are doing a lot of business in Africa at the moment and I suspect will continue to do so. So remember, it's not just about the gas potential. There are other factors in play here...not to mention the 10 year tax break.
LW - I'm saying it's worth 27p if someone is willing to pay that...
How much is a house worth? What a surveyor says, or the best offer?
For liquid markets the value estimate is usually close to the price paid. In illiquid markets like this there may be huge differences, which of course is what the op was saying...
My disagreement with Trellis is that he was saying that selling Tendrara is the only option.
Hey crude can you tell me where red rum is with that crystal ball of yours?
I'm afraid many are blind to strategy here Longwait. They only see sell/don't sell and keep on drilling, rather than a number of other options available given we have a concession ready to develop. That's why they're here and not making deals.
'knowing that the seller has had to revise their expectations, still has to sell and knows you may be the last resort.'
That's an assumption with which I disagree, Trellis.
Trellis, I think the song you're looking for is That'll Be The Day.......
Why, DE, would someone tell Rothschild they are willing to pay 10p per share for something worth 27p per share (TE-5) and expect to get the rest of Tendrara for nothing?
Isn't something worth what someone is willing to pay?
Or to use the auction analogy, something is worth what two people are willing to pay...