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Sorry Jarro think I have reduced it by a factor of 10 so 230,000 and 115,000 should be the figures
According to JJ it was about £23,000 and they are reducing it to £11,500 but it's not clear how far down that road they are.
That is operational running costs only.
GLA
250 your figures are correct. At the FSC JP said things such as it was better than finding a dry hole and that it was a discovery (non-commercial) but he also said there would be no further work at TE10.
I guess the value of it is that it at least proves to some extent that the seismic and their theory is correct in identifying gas deposits. They are just struggling to get it to flow at commercial rates. So on that basis it is better than finding a complete duster.
GLA
I'm getting drunk just reading these messages. I thought Trellis would be involved and yes, I was right.
SO - depending on how this goes we could all be on the Echo Falls.
Actually if it goes badly maybe steer clear of the Echo Falls, the name might remind you of JP too much!
GLA
I think we have to bear in mind trellis, that the chance of corkage is going to be higher on your 1955 Rothchild than a bottle of Echo Falls. Higher risk for higher reward. The cellar still has a stock of lower risk wines with of course a lower value. You are making the mistake of judging your cellar only by those centerpiece wines. In case you're not sure what Echo Falls is:
https://www.tesco.com/groceries/en-GB/products/286132066
I've never touched a drop, but it would be advisable to use your usual scepticism when considering the delicious comment in the advertisement. Other wines are available.
Trellis I will take you up on your offer and we can decide which of us was closer to the final outcome.
In your analogy you forget that JP has friends at wetherspoons and he has already negotiated a market and supply chain for his wine, he has partners with one of the best corkers in the business and he knows he can sell his current £1,500 bottle and it will supply 60% of the French wine sales for the establishment. He has identified some New World bottles that he hasn't even opened yet. He knows in the cellar next door the new world wines are superb.
Would he still only get £1,500 for his cellar and his proven bottle of 1955 CMR?
I think he would get more, how much more is the question.
GLA
That’s a great analogy.
Trellis your dilemma is slightly different to JP's. I would say that he has already found one bottle of the 1955 CMR and knows the value of it. He has a cellar full of other bottles which is vast. He has done a quick inventory and found a few potentially nice wines but subsequent bottles he has opened have been corked.
He is marketing on the basis of a cellar of this size there can't only be one bottle of 1955 CMR.
If he was to sell his cellar would he accept less than £1,500? No he would want £1,500 minimum and he would expect a premium on the basis that in a huge cellar it is unlikely that this is the only bottle of fine wine.
Good luck with your wine sale and good luck to JP and us all.
"JP still calls TE10 a discovery"
He probably calls it a discovery..........because it is.
I see that n4aPound has finished licking its wounds and come crawling back. How’s the average? 95p? 33p? Or has it changed once again? Given the timescales, i’d guess it’s somewhere around 10p now? You should be happy :-)
just aa catch up of posts from yesterday and one mde me laugh.....and laugh hard.
JP still calls TE10 a discovery
This coming from the man who refused to admit TE8 was a failure and kept calling it a partial success
Clearly, he is baffled by his own BS, and th elikes of JJ are there to reinforce it! If they want a real cost saving in G&A, get shot of JJ....he has brought nothing to the table, added no value and quite frankly is a drian on finite resources a.k.a Cash
Clearly they didn't discover 'plenty of it' Shaun otherwise it would have been commercial but the rest of your post is correct.
Thanks for posting Shaun
As the slides say....
Longwait, the level of understanding is astounding. It is a discovery.... because they discovered gas. And plenty of it. The problem, of course, is that it is (currently) non commercial. So it is a non commercial discovery.
SG47 - I assume sound have communicated An offers over valuation in order to filter time wasters and any suitors at the table that lack the imagination to see the upside from the exploration lead inventory beyond the te-5 Horst. Toxic time wasters need not apply etc.
It's interesting that JP is still calling TE-10 a discovery.
I seem to remember that he was ridiculed for calling a supposedly dry well a discovery, but maybe he is better informed than some of his critics.
Shaun, you have posted some very relevant 'Sound bites' from the FSC! Cheers and hopefully we can put our faith in James, Simon & Rothchilds...not to forget Schlumberger, who may well be involved in a joint sale...who knows!
Do those quotes suggest a LE of 10p? Of course not.
"I understand this feedback and please be assured we have a plan. None of us want to sell out too early or too cheap"- JP "It’s hard to comment on a specific share price. On an un-risked basis, brokers and analysts have a 19-27pps value for TE-5 and further upside from exploration. Today’s share price is substantially below that, of course." - JJ "This is an exciting time for the company and our shareholders, with a clear pathway to commercialisation." - JP "You are correct that TE-10 is a gas discovery. We have acquired data that will allow us or a subsequent party to evaluate the size and potential of this discovery. Given the recent termination of operations much of this work is ongoing. It is possible that a future operator may look at TE-10 as an appraisal opportunity." - BM "It is likely the first RNS would be that of a recommended transaction by the Board, not an offer being made or negotiations being underway," JP "For sure having a non commercial discovery is better than a dry well, if that is the question." JP "The plan is to sell the business and return cash to shareholders. We would hope to have the value of TE-11 an other prospects captured in the sales price." "Our job at this stage is to maximise value for all shareholders and we are entirely focused on that. We don’t see further potential in TE10." JP "We think now is the time to sell, and the ambition is to get the value for the shareholders from TE-11 via the share price." - JJ "am very disappointed with the TE10 outcome (actually that is a bit of an understatement!). We have worked really hard to unlock the basin potential but so far we have not done that with the drillbit. My commitment is to do better for my shareholders." - JP