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‘The reason is they still have some proving of the asset to do. The revenue generated is a bonus.’ Right! :) and what happens when they have proved the oil and brought it to surface????? It makes money
Easy. Pmo is worth more because it can monetise it’s oil. It has become an asset because the company has turned it into a revenue stream. Next
‘And to state that oil reserves / resources have no inherent value? That wouldn't appear to be how O&G companies are valued by the rest of the market...‘ You show me an oil company in the market that has no revenue stream and only boe in the ground and we can compare. Then you can show me an oil company that does have a revenue stream and way of monetising reserves. I guarantee the company that has a revenue stream will be worth more
No, a gold bar is obviously an asset, because it has been mined and monetised. A gold mining company with no income but is spending money drilling through rock has a liability because they don’t have any income or gold to make money from. If you don’t agree with me then why is the share price not higher based on the billions of barrels in the ground? Because the company has no revenue stream
agree with Ghengis on market pressure.
in 1995 amazon generated $500,000 which increased annually to around 89 billion in 2014. I believe they floated in 1997... so bad example.
'How much money is HUR currently making and what is its valuation then please as I am clearly missing something ?' - They aren't making any money, they wont until they monetise the oil.
'Why would spirt buy in to us then to lose money . To blow hundreds of millions they know what there getting' - I was under the impression this wasn't a cash deal? hurricane didn't get cash for it. (happy to be corrected) they want to montise the asset as much as we do. There will be plenty once they get oil out the ground. their 'assets' are most definitely liabilities because they are going to spend an awful lot of money before they make money.
Casapinos - no really, it's only an asset when it is making money. At the moment there is lots of money being spent with no return. Return will only come when oil is sold.
Not trying to cause a furore here, chaps. Just trying to highlight that the share price is being held down for a good reason. Until there is confidence that money is going to come in, it will stay low.
Love a peaceful debate. I have also been here for several years but just wanted to highlight that an 'asset' isn't an asset unless it is monetised. It is a liability because it costs money to produce and drill. At the moment, it is just costing money, not bringing in revenue.
Just like your home, if it is not for sale and not appreciating in value, you have a lot of money tied into it and it costs you every month to keep it running. Therefore, technically it is a liability.
Ok, I think you have all missed the point. Facebook is a terrible example. in 2009 it made 800 million, in 2010 it made 2 billion, in 2011 it made 4 billion...
no need to be on the defensive and get flippant pal. Unless the assets can be monetised, they remain liabilities. you cant calculate an accurate EV if all your assets are in fact liabilities. therefore the share price isn't going to explode.
about this share, it is that absolutely everything possible is already 'priced in'. The only thing that will make a difference to this company is when oil is being sold. there will never be a significant rise until revenue is there.
The main downside is that you can't possible have a company valued at £1billion if it doesn't make any money...
ilikesalmon 04 Feb 100p RNLIL
Wishing you the best for new year Alex Salmond
How would the BOD keep it low? Surely its based on MCAP and EV?
Heads will be rolling fairly soon I should think
Cod is rubbish in a fish supper. Haddock all the way
or Salmon, that is also good
Can any update a noob (me) why the share price is tanking? is this a takeover target?
There is only one way to sort this out... FIIIIIIIIGHT!!!!!!
the word is out
Maybe pirates have boarded a ship
So..... Do you know what the start up flow rates will be, or not? I like salmon