Tarth, they can sell the assets to other majors but their aims are to develop the field. that's my perception from their half-year presentation back in August 2019. They are going to sell ZAMA to pay off their debt.
I think, if Charlie-1 drill is successful then they will exercise the option to acquire an interest in Area B & C and will explore those area as well. It seems they will be developing the fields..
First oil is expected in 2024/25. They have time to develop the field. Next step will be drill horizontal well... then in 2022, they will drill 3-4 wells including production well. They don't need high CAPEX in the near future for Alaska.
In the next 2 years, oil prices are expected to be much higher and PMO will be in a comfortable position financially.
The point is, will WTI remain at current for long period? I don’t think so. It may bounce back to $50+ ... and 88E need to drill 3-4 wells to prove up the resources and then can sell the assets. At the moment, I think $1-1.5 per barrel would be appropriate valuations = 2.25-3.25p per share from torok formation.
100 bbls a day? I hope, you know how the oil industry work. If this well flows 100 BOPD, this will unlock 190 Mbbls (net to 88e) and then will move to next stage horizontal drill with potential of 1000 BOPD. 70m market cap for 190 mbbls potential??? Even at $1 per barrel, this is worth 2.30p...