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canary, multi drills Ghana Q2 should up production as a simple calculation of Tullows cashflow projection works out at $5.2bn at 75k barrels over 10 years so their plans must be to increase production to get the $7bn cashflow they desire and why they reinvest the $2.7bn.
canary, the presentation told everyone $7bn of operational cashflow i.e positive cashflow over 10 years.
They included in this $45 @ 2021 and people are saying negative cashflow 2021 when Tullow themselves are saying mega positive cashflow at $45 2021...$55 2022 on.
Slift how do you get true breakeven at $47 for 2021 when Tullow stated in their presentation the following:
It said that it expects to generate $7bn of operating cash flow over the next 10 years and to reinvest $2.7bn of that, mainly in a multi-well drilling program in Ghana.
The remaining $4bn will go on cutting debt and allowing for shareholder returns on oil prices of $45 per barrel in 2021 and $55 per barrel from 2022 onwards.
i.e they are alluding to making profits at $45 a barrel 2021.
70000 barrels a day x $15 x 365 /1.34 = £286 million profit a year
Even with some commentators suggesting 65000 barrels a day which they got from Conservative guestimates thats £265m profit.
Fair value £750m easily.
oil price is up over $3 in a week price didn't really move here upwards and the joke is MMs are pushing it down.
meanwhile brent is $50.64 and the price here should be 45-50p not 32.3p and falling.