RE: Navigate Share Price25 Jul 2024 06:30
Hey LTT,
It’s certainly going to be interesting as each of these key enablers fall into place.
Personally I would be very surprised not to see us at 75p plus on the OM confirmation and FID. Agree that things like the Environmental Plan getting signed off should all act as small catalysts and news flow in relation to funding of the project and the confirmation of a rig will all see movements higher.
As soon as FID is announced and assuming it’s a yes, then we will see some large rises more akin to the old days. The second investors know it’s going ahead then this goes from a high risk explorer to a producer of 30k barrels per day.
With that will come significant cash flow, profits running into the hundreds of millions and the ability to self fund Isobel etc and at this point RKH goes exponential.
With just 600m shares in issue the upside is huge.
Personally I intend to hold until Isobel is ready to go so another 5 years or so. That’s when the really big money will be made unless we get taken out before hand.
If you want to look at a similar case study to RKH have a look at Serica to see what the share price can do. Market Cap of over £1bn before the punitive taxes associated with the North Sea brought the share price crashing down from over £4.50 with a similar share float at the time.
Difference is of course that the Falklands have some of the lowest tax rates in the world for oil companies and we also have Isobel and other huge follow ons that can be financed from free cashflow.
Whilst Serica hit £4.50 and then headed down, we will ultimately hit a similar level and head higher as the whole basin opens up and field after field come online over the next 10 years.
The sky really is the limit here.
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