Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
For those thay may have forgotten or dont know.
The beauty of the Serenity deal is that even if it fails, there is backup protection in place for the SP.
should it fail to prove an extension of the discovery, the c.10 mmbbls already discovered (c.2.5 mmbbls net to EOG) is expected to be commercial as a joint development with the neighbouring Tain field, providing protection on the downside should drilling disappoint.
it's not a 60% drop, that's monsense, priced at 23m currently, that would be a price c10m when they already have wressle and associated drills delivering over 300bopd.
that doesn't include the 25% of Serenity a proven oil field.
It’s the Best Buy in the market, the upside is phenomenal.
We know it will drop on bad news, with the caveat it still retains its 25% of the license
It will still be delivering 300+ Onshore bopd with wressle and its other wells.
The downside max has to be c1.8p worst case and that would improve.
The upside could be a 5 bagger plus.
For me it’s worth the risk on a 50/50 drill every day of the week.
Deeko thanks for reminding me, I was also in serica at 10p and sold a few days before it took off, think it went to 60p maybe 80p, I couldn’t look anymore. the share I bought dropped off a cliff, I was devastated for months.
So 240bopd for EOG, may continue over the next 5 years, excellent payback on wressle alone.
With the ashover grit etc still to come we languish around c25m mcap.
Eog is undervalued even without Serenity.
I posted this a while back
Should it fail to prove an extension of the discovery, the c.10 mmbbls already discovered (c.2.5 mmbbls net to EOG) is expected to be commercial as a joint development with the neighbouring Tain field, providing protection on the downside should drilling disappoint.
That’s the message for EOG and its holders, it can’t fail even on a poor drill result, I will buy more on the dip, it’s a no brainier.
EOG with 30% of wressle and up to 90 bopd with its other wells has a mcap of c26m, it seems undervalued in comparison to its partners.
The other 70% of wressle , a load of hot air and no Serenity on their books is valued at c100m
With new rounds off licenses being offered by the govt.
I can only assume the cash is being ear marked for that or per chance a current license where they are looking for a percentage in the deal, im thinking the 3 partners will be looking at fracking in some joint deal.
Draft, yes but everyone seems to have forgotten, there is backup protection in place for the SP.
Should it fail to prove an extension of the discovery, the c.10 mmbbls already discovered (c.2.5 mmbbls net to EOG) is expected to be commercial as a joint development with the neighbouring Tain field, providing protection on the downside should drilling disappoint.
That’s the message for EOG and its holders, it can’t fail even on a poor drill result, I will buy more on the dip, it’s a no brainier.
I’m was wondering what price EOG if it hadn’t raised cash for Serenity.
I’m guessing it would be well north of 27m and nearer its partners EDR and UJO c50m mcap.
All those saying it will have a big drop on bad news from Serenity, for me at 27m, it looks like it’s already been priced in.
Given UJO announced net profits of $9m from wressle, we therefore have to assume EDR and EOG must also have circa $7m from wressle alone, we also know EOG have 3 other onshore UK wells delivering around 93 bopd.
We also know they had 0.6m in cash and no debt around the time wressle came online.
Ball park figures for wressle must be c$750k a month, adding the other 93 bopd, we must be around c$1m net profits monthly for EOG.
By year end EOG as it stands will have made a net profit of c$13m from its onshore oil fields. Imo.