RE: Good price to buy now but could be better to wait another few days?25 Jun 2023 13:47
Good reference Wookiemonster… I was in XEL and as you said big asset but very expensive to get out without the infrastructure also from memory in excess of a billion to develop starting at 400million for the first phase…. With a 100million bond deft and no income from production and in the middle of the worst oil crisis in history it was a great mix and bad timing!
How does this relate to us? Well firstly we’ll also have a massive asset which has been partly proven up! We’ll have production and money coming in with both increasing daily! A small and serviceable debt…A major that came to us as a joint venture potential partner!( xel put in out there no one was introduced!) on terra firma field which is a fraction on capex to develop compared to deep sea! And even if this potential joint-venture falls through, we will continue production, increasing to a decent and profitable level, and we can re-invest in more Wales. It would just mean we develop much slower.! I believe even if this was the case we would have a hostile takeover or another joint venture would be agreed in time! So from my perspective, someone who was invested in XEL and hurricane..!! We are in a very different and positive situation going forward! :)