RE: Victory Sale15 Jul 2022 10:37
Morning GP.
I think you are on the right track with your thinking there. I can't see the buyer of Corallion wanting to take on all risk for a lump sum.
The way I see it is that there will be a token payment for the purchase of the company. It has been mentioned elsewhere that the value of Carallion is expected to be in the region of £11m. Therefore a credible offer would be anything above this amount, say £15 - 20m, with a royalty once the well starts producing after it is hooked up to the nearest pipeline.
Much as I would love the initial payment to be absolutely whopping, I really can't see it happening.
Don't forget that the deal may also fall through. OK we get our £250k back for the rest of the assets, but we are also back at square one trying to find a new buyer for Victory.