Spangly, almost your 50p would be x 20 so £10, so your new exit would be £30
Spot on for the 15th if 7 knots is maintained.
I do think it was a good response but as discussed this morning the financial benefits need to be made clear.
Although many have an environmental concern the financial benefits can outweigh the concerns when you are looking at the future for the country or even your own children and family.
Assuming a farm out. We would get a large chunk of the costs back but that would undoubtedly be kept for working capital to expand into other opportunities and develop existing assets.
Obviously the share price would skyrocket but we all know that.
Unfortunately that letter did not show the company or the shareholders in a great light at all. I in fact would agree with the comments from the Bahamian.
Risks are present and we need to show the benefits not try to go after the people objecting. I am sure everyone on here would do the same thing if it was in your back yard.
The drill will happen regardless in my view but we do need to get the people on our side by giving them all the available information so they can understand the gravity of the decisions they make to support or object.
Ok when then let’s take the 7B recoverable and PoO @ $50. My fag packet maths would be $20 cost of extraction then $10 to farm out partner, $10 to the Bahamas and $10 to BPC.
So $70,000,000,000 each as an upside. $175,000 per Bahamian Citizen.
If this is the true estimated upside then these numbers need to be known as $5B compared to $70B can make a big difference to the decision making process.
It should be public Star. The 28B is talked about in the same way for the entire structure as the 1.4B for P1? The 1.4B is recoverable I have always assumed?
Thx Star
“ just from the 'B' structure at 700mboe @ $40 = $5B NPV10”
I guess this is the part I was trying to determine. If this is correct then assume PoO @ $50 so $6.25 B to the Bahamas. Extend that out to the upside quoted @ 28 billion barrels would be $6.25 B x 40 = $250,000,000,000. Or $625,000 per person assuming a 400,000 population.
That is a very different number to the $5 B that is being quoted as the potential revenue to the Bahamas. I would also assume that BPC would benefit a similar number.
STAR maybe you can answer this for me. Assumption being made that we hit the high end of the estimate at this drill at 1.4 billion barrels.
This then opens up the likelihood of the rest of the area also being successful at the high end. The number estimated is 28 billion barrels.
What would the likely ESTIMATE for BPC per barrel (PoO at $50) and for the Bahamian people per barrel. I am happy with rough numbers high and low end. I have little knowledge on the structure of these kind of deals and I assume someone here would be able to have an educated guess.
Johnbriggs you obviously don’t know the Bahamas. Although what you have said should be true, in the Bahamas political clout is everything.
He could buy Aston with the space change in his sofa.
Titan, I live in the Bahamas also and have many contacts with all the above. I actually have respect for Papa as I had to deal directly with him on a Corruption issue that he swiftly dealt with.
Peter they were paying the same but not getting much in return.
Doyezee the huge debt will continue to hold us back. As soon as a sniff of a profit is shown then this share will move.
Not sure when this will be but if not before the boost from the delivery of the Valkyrie should put the company into profit.
Paul, don’t forget sharing the pace car role.
Titan, obviously the current government are in support as they have only recently given extensions and approved the environmental earlier in the year.
That is why the news of the opposition support was a great thing. Not much chance of any objections getting traction with both sides of the government in support of the drill.
David that is how business works. 15 mil profit is a good return on 35 mil.
My point was that if we don’t hit P1 the money we have spent and debt would be problematic to raise money to develop the CERP assets.
Overall it is positive and will be a good boost especially on a smaller find on P1. We are in a better position now after this news than before.
Not a de tamper but let’s be real. It will be difficult for us to develop this strategy and get more funding without the P1 success.
It does add value to us but still reliant on P1 in my view.
Harry, if we put the legal objection aside.
Are you saying you don’t think the Icemax ship that is traveling across the Atlantic with a destination of the Bahamas is going to Spud?
I am annoyed with the dilution and the poor RNS and lack of delivery on promises but I still believe that this drill is happening unless we are legally prevented from doing so.
I would have thought the consolidation would be to make the price look better and more attractive to institutional investors so this would actually make the price more volatile.