How could RKH look like in 5 years?16 Nov 2020 19:00
I'm a long time holder, but never posted before. The last years have been a rollercoaster, and I'm hoping it will finally find it's way up for the long run...
In the next +/- 5 years a lot can happen, so I was wondering about different scenarios and what it could mean for the share price. In short, I see four possibilities:
1. RKH goes bust
2. RKH is taken over by another company
3. RKH is living the dream and producing oil
4. RKH is somehow still trying to get Sealion up and running.
Of course I'm hoping for scenario 3, so assuming this happens, then what could the share price be in 5 years? I can think of the following parameters, which would have an effect on the share price:
- net OM award
- price of oil in 5 years
- wether or not Navitas is still in the picture (if not, I assume Premier Oil/Chrysaor have taken over the Navitas share)
- wether or not dividends will be paid
- wether or not Isobel is also developed
- increase/decrease of number of shares
Can somebody provide some inside on this? Or maybe create a formula?
For the increase/decrease of the number of shares, I am also curious what some likely scenario's are. I read some comments about buying back shares, although I didn't completely understand how likely that is and why this should be a viable option. Issuing new shares for the development of Isobel could be a likely scenario.
Good luck all, and thanks in advance