The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Hopefully yeh but thats what was on the table 3 weeks ago.
Gritster,
That was before well 155 news and the tie back to the production zone.
That's been put on there to get the negotiations to the $100+m imo.
Gritster,
If they'd spent around $70 million developing the shallows why would they accept $80 million for them or even $100 million? I'd have to say your statement as fact is incredulous at best.
Hes been offered 80 million but wants nearer 100 apparently. Dont know if thats dollars or pounds. Should hear something soon .
Rocketeer,
The current 3.6p share price includes 'some' valuation for the shallows so the bulk of the shallows current valuation would be absorbed in the $200m sales price. It wouldn't be the current share price plus sales dosh equals X but I like your thinking.
Note you don't often see a Company's cash pile valued more than the MC, the proceeds would no doubt be reflected in the share price somewhat, but it would be unlikely to be 8p + 3.6.
However, what would have a big impact on the share price regardless what the shallows were sold for would be if a Supermajor like Chevron/ Exxon bought the shallows as they'd be virtually next door best mates and first inline to buy the deeps, which in its self would be reflected enormously in the share price.
If I was a Supermajor I'd be wanting to buy the deeps too, KO may be putting any shallow/ deep sale off until the 155/ 806/ 141/ 802/ 803/ A5/ A7 wells have been drilled in the coming months for a better sales price?
Would a Supermajor want to develop the shallows while another is developing the deeps where the big oil numbers are at? I'd want the whole lot - $3 billion for the lot is nothing to the big boys.
If there are multiple bidders for the shallows then there'll be multiple bidders for the deeps, why not make KO an offer for the lot now he can not refuse?
Once an offer has been reported to shareholders for the shallow there could be a counter offer, we may have to borrow some of Divermike's popcorn. :- )
In your example you should say 6.8 + the 3.6 stockprice = 10,4P
Rocketeer,
That's 200 million dollars not pounds with 2.35 billion shares in issue next week and .80 to the $.
Interestingly WHI had the shallows at 8p a few years ago a $200m offer is about 6.8p so $200m could be conservative.
WHI has a full valuation of $2.8 billion for BNG - before WS/ Block 8 were bought.
So if the starting point will be around £200M. The stockprice will be x3 / x 4 so between Minimum price: between 12P-16P
So yeah $200 million could be a starting point, especially as we're told there in talks with multiple interested parties.
I've reasoned three different sale prices for both of the shallows one of which was based on $5 per barrel for our 40m 1P/2P Reserves - all three come out at around $200m.
After reading the WH Ireland note again I see they are pricing the 2P Reserves at a little over $8 per barrel (CASP are now getting around $33 net per barrel for local/RF sales much higher from $20 pboo years ago and when oil was around $60 pboo).
Using WH Ireland's $8 pboo that works out at $320m for 40m barrels of 1P/2P Reserves.
7 years ago Carver said they'd spent $130 million developing BNG and a large chunk of that would have been spent on developing the shallows, even more now 7 years later - $70 million? some of which will have to be factored into the sales price to boot.
So I'm thinking the $200m guestimate could be pretty conservative blowing the carry value out of the water, especially with several shallow wells drilling/ to be drilled again and into the Dolomite, new data could push up the 1P/2P Reserves higher and then there's the 'potential oil' to factor in. CASP can trade oil and may well be able to continue selling the shallow oil on as part of a deal?
So yeah $200 million could be a starting point, especially as we're told there in talks with multiple interested parties.
Current Net Worth £80m - Kuat & Clive want a 10 bagger for £3m bonus.
Caspian Explorer - Seabed foundation laid ready for drilling in Q3 profit $10 -15m, has led to discussions/invitations about other offshore drilling programmes.
Well 155 drilling - readying to tie back to production area via pipeline - information on line.
A5 - Sidetracked ready to start well test 08/06/24 - information online on official Government website.
A7 already drilled to 2150m use data from A5's success to place drill bit in the same zone.
802 & 803 ready to be drilled to production.
MJF being discussed for sale for last few months with multiple parties - $100m a conservative estimate looking at previous and lesser oil field sale.
Block 8 - wells drilled and ready to be tested once licence renewed.
West Shalva - Kuats had a tickle of extra stock.
CTS drilling making profit and getting them farm ins to other fields.
Oil trading group.
People will be buying this all the way up again once the information that is available online is put into a formal RNS.
Down here it is only us buying in.
In Adrianz's A5 Deep Well document on X it refers to ''Objects in the intervals 4,372-4,379m'', which is an interval 'depth' between the already perforated and highly pressurized 63m section (4,331m and 4,394m). The permit for testing this intervals start date is between 8 May 2024 and 6 June 2024.
The 'object' refers to 1.11 million m3 and I presume it refers to a gas quantity of 1,110,000,000 cubic meters of gas, which is equivalent to 17,550,000 barrels of oil - (Doc says - ''permitted volume of raw gas combustion'' so could be a gas column as 1.1 billions barrels is a 7m interval might be a bit too much ;-) (though it probably refers to flaring the gas off the oil?). So it looks like it's relating to flaring?. If it was oil they were referring 1.11 m3 would equate to 6,981,690 Barrels of Oil.
Is this 7m interval a gas zone? Could be.
In the last CASP Q & A session re the A5 Deep Well they said they were going to drill a new 400m sidetrack from a depth of 4,500m (4,500m-4,900m), which is way past the 63m perforated section, very strange when the 63m perforated oil column is between 4,331m and 4,394m even with a gross 105m net-pay column.
We'll soon see what this 7m interval is oil/gas and if it's just part of the 105m net-pay oil column they're supposed to be sidetracking again.
I can't see them only having a 7m target of interest when there's a 105m net-pay oil column, where some 63m of perforated intervals flowed an initial 3,800 bopd.
Anyway who knows, just doodling and thanks to Adrianz.
Cannot copy the document btw.
Mug, post here from now on, it will keep the board free from your nonsensical drivel.
Everyone else already knows, they can read.
Coffeemug,
Not that old chestnut again?
Once again you're incapable of backing up what you say, a common theme with you isn't it.
Let me help you, they perforated the A5 Deep Well 63m between 4,331m and 4,394m so where's this 7m interval that's less pressured i.e. at what depth is it at?
Hmm, I won't hold my breath for an answer and only expect more gibberish from you as per, prove me wrong.
I'm sure we all want to know.
Somm,
if you weren't so completely useless you'd already know this.
Mark Twain has a good quote for when dealing with individuals like you.
Coffeemug,
"There have sidetracked A5 differently this time and instead of trying to flow the whole 63m of net pay have found a less pressurised zone and are testing the third zone of 7m net pay."
A less pressurised zone of 7m?
Back this up......or shut up.
Badge,
Block 8 drill money was funded via a 5m bank loan.
There have sidetracked A5 differently this time and instead of trying to flow the whole 63m of net pay have found a less pressurised zone and are testing the third zone of 7m net pay.
Definitely looking at the A5 data to use on the A7 drill as well as being constrained by cashflow.
Selling MJF for circa $100m and the boat contract being confirmed eases all these issues.
Ifvit wasnt a priority then why did they start drilling the A7 Deep Well and then stop?
They had 2 G40 rigs they'd already bought to drill those 2 wells on Block 8.
The G70 rig is still being acquired, so they don't own it yet.
They found the money to drill 2 wells on block 8 that we didn’t even own so I think if they had wanted it drilled it could have been. I just don’t think it’s Kuats priority. Possibly they want to learn from A5 or maybe they don’t have the infrastructure to cope with the expected oil production.
The G70 rig has been sat idle since last year waiting to spud the A7 Deep Well, we've had so many excuses as why it hasn't spud the well (planning/ testing blah blah blah).
I think even though they drilled the A8 Deep Well with the G70 rig (the seller probably let them use it before it was fully paid for) the reason they haven't gone a head and spud the A7 Deep Well is because it's still not been paid for:
16 February 2024:
''At Deep Well A7 we plan to use the G70 rig we are in the process of acquiring''.
Dec 22 2022:
''A new G70 rig, on which we expected to complete the purchase in the next few weeks, will be used to resume drilling at Deep Well A7, which was paused at a depth of 2,150 meters.''
Recently we've learned production hasn't been anywhere near 2,000 bopd as reported and more like 1,400 bopd so with Covid 19/ Sanctions it's possible they've not had the available funds to finish buying the rig and therefore the seller has stopped them using it until the full payment has been received?
They say that they want to see what happens with the A5 Deep Well, imo that means if it flow they can then go ahead and finish buying the rig with (hopefully) an increase in production - test production oil could be sold right away locally and the dosh would be received a month later, so the A7 Deep Well could restart drilling in June/ July? perhaps they'll use the shallow proceeds money if a sale goes ahead, but could be many months away?
I think at the time the G70 rig cost $750,000?
I could be wrong but that's my reasoning why the A7 Deep Well has not spud all this time.
Divemike,
What flavour is your popcorn - camarel?
Enjoy the virtual show ;-)
Maybe they met on Tik Tok/T watter/X /Our time or another over 50s dating website, who knows
It does intrigue me, have Coffe and Somm ever met, do they know each, how long has this relationship been going on, did they 1st meet on another BB, lots of questions, have they been on Love Island together, we need to know these answers
UNC, sit back and break out the pop corn
Good Grief!