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Selene is fully covered through JV partner, However, DELT needs to arrange funds for Pensacola.
Assume the drill cost on success case is $47m (similar to Selene cost), then DELT needs to arrange their 30% cost ($14m or GBP 11.5m). In case, DELT further farm out 15% to new partner, and in that case, DELT needs to cover their 15% cost of $7m = GBP 7m; unless new partner cover DELT cost.
Anything can happen … wait game now
RedBeard
Company is now operating under new management differently to DW. Current management seems to be focus on organic growth via diversified portfolio, rather than creating hype and do dilution.
Hopefully, 88e to witness first ever success next month, and the share price will react positively. (Look at HE1, did 10 baggers).
Dobbin,
Very difficult to predict. In general, they are looking to derisk 650 mbbls. Ground value of oil (2C) may be traded around $1 a barrel, and let’s assume, we value 650 mbbls at very conservative rate of $0.2 (20c a barrel), this may worth GBP 100 million (0.45p) just this project.
On the top, sentiment and hype (just like HE1). I personally think, we may be something 0.60p or more if both zone flow at desire level
MT : success on flow test to derisk the project and increase valuation of project. So, likely market cap will rise on positive flow results.
There are two flow tests, success is one zone likely to derisk SMD and will increase demand of share.
Can anyone provide detail the financial requirement for DELT to cover their cost.
What are the expected total drill cost (gross) to drill both wells?
How much DELT is required to cover their cost for both well? I assume, DELT WI in P is 30% & 50% for Selene. But, slightly confused how much Shell to carry for Selene drill?
What is expected cash, DELT need to raise to cover their cost? I assume, Selene drill cost is upto $35m (gross), but not sure, how much Shell to carry?
RedBeard,
Never forget to mention that Scott was advocating for PANR when the share price was over 100p, and now the share price is nearly 70% down since then.
The market wants oil to flow, and it will derisk the project and create a valuation for shareholders. Not saying this will be 1p or 2p or so, but if oil flows in all zones (SFS and SMD), the share price is likely to be much higher than current level.
Let's do it this way, the value of 2C resources may be $0.5 to $1 a barrel. Flowing oil will derisk 400-600 mbbls net to 88E, and let's assume at the lowest estimates, 400 mbbls at $0.5 = $200m or GBP 160m or 0.65p?
PANR need over $100m to develop their field, how they are going to raise fund? Debt or new shares?
I think, 88E probably aiming to flow the well & then will target to find partner or sell assets. I assume, there is a good possibility of commercial deal with PANR
RedBeard
As for my understanding, PANR have drill Alkaid 1 verticle well, flow test vertically, and then drilled horizontal well. Same procedure was applied for Theta, drill Verticle well & then flow test. Samething is doing 88E.