The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Antharry you just recently joined this board. You just got lucky but really not bright
I am not concerned about your opinion but the result of the vote, the deal is pretty bad so I am expecting big number of sharholders to vote against the deal.
As a tortoise I wouldn't stick my neck out if I were you. Hopefully the result will be the one that pleases me.
Stop arguing with me and vote against the deal. You right thing to do!
We don't need to move Tullow. We are in no rush to sell at such price.
the value of the property hasn't (HASN'T) fall 66%
Oil has only fallen 33% not 66% despite of the cost of extracting the oil, the Ugadan oil is fairly cheap to extract, the value of the property has fall 66% even with oil with POO at 40$ per barrel on the long term. And by the time of the vote will probably be at 45$ or 50$.
Gearing is fine and lenders understand oil is cyclical.
Where do you get the idea from tbhat $575 millions is a "Fair Price"?
It is NOT!
Total was offering 900 millions for a 21% stake a year ago. (That's S1.4 billions for our 33%)
And now they are offering $575 millions, that's a 66% discount of their original offer.
How would you feel if you were forced to sell your home at a 66% discount?
Would you think it would be a fair offer???
Ghana has been well so far and even Uganda is a very corrupt country it has one of the most prolific reserves I got respect for that property and I want a fair price for it.
Guyana is an unknown I have hope and I like the holding but that isn't a valid excuse to give away Uganda for just $575 millions.
On the other side people like Carl Icahn hold stocks for over 30 years.
I would advice you not to try to timr the market your bank account is not my business and none of my business.
If we sell Uganda for $575m and Kenya for (hopefully in a better economic climate) another $500m we will hold around 250 mmboe (Jubilee, TEN and Gabon) we will have $1.8 billion net debt and a production around 70k bopd, in relationship with Repsol we we will be worse off (1 tenth of it's reserves and 1 tenth of it's production but a fifth of ift's debts) with an optimistic valuation of 2 billion (1 tenth of Repsol reserves 1 tenth of Repsol's production and debt) minus 1 billion for the difference (shortage) from the debt giving an optimistic valuation of 1 billion (70 p) but if we hold Uganda and get a better offer we could be getting from £1 to £2.
You were out before the circular came out, right?
Why did you sell?
I just hope you don't hold many shares.
-$430m is a lot of money for Tullow (is near it's market cap), last time Tullow had to make a dilution to raise $790m in 2017 in a rights issue.
Throwing away $430m is really the issue, $430m is a huge chunk for our net worth.
"I cant see the Uganda deal being rejected at all..."
I can and I cross my fingers
Nothing more add. I rest my case.
It is easy to be mature when you don't have any vested interests.
Kudos to Slift though Uganda should be held for a better offer. We can easily get twice as much.
Yeah Android101 it is much better to be represented by a sage like you rather than being represented by JP Morgan Cazenove.
Can't compare!
Selling Uganda provides CAPEX savings of $1121m over 6-7 years, and over $700m over 3 years.
That's at best an estimate and we would cuadruple production. And it would be more like $2100m ($700 would be for a 10% stake, we hold a 33% stake)
You talk to lenders in search of finance for new projects or for finding a decent offer for our Ugandan assets.
That's the job of the CEO.
Bu it was 245 mmboe in 2019, 280 mmboe in 2018 and after the revision in Jubilee (and TEN, TEN downwards) I recall it was revised upwards to 280 mmboe again.