RE: Selling Zama23 Nov 2018 10:39
Zama provides a foot in the door to a prolific oil province in shallow waters.
We also have the other block nearby Zama to drill, which, if I remember, has similar characteristics on the seismic profile.
IMO they should keep Zama and sell the Lion.
If oil remains $70+. we should have enough free cash flow to pay down debt sufficient to meet the covenants as well as invest in some development projects.
Tolmount is cheap to PMO.
Zama, as we only have 25% of it, shouldn't break the bank to develop it over the next few years.
The ball and chain is SeaLion as we currently have 100%.
Sell the Lion!
(Keep the Cat)