Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Very interesting how this figure could be achieved, not even in hurricane season with gom closed has such a weekly drop occurred. My guess is manipulation. The main thing to watch over coming months and years. The tier 1 areas are all drilled for the most part, and this will lead to lower production per well and a sharp decline in us production going forward. Not immediate but certainly to be looked at in the next year or 2
Net debt is down from 3+ billion 3 or 4 years ago, massive reduction but came at a cost in production etc. TLW seems to have turned the corner, the production output will increase from 60kbod to 75 or 80kbod. Thats where the big change will come from. Recession talk prices oil at 75/80 per bbl. This bodes well for tullow, the increased production is unhedged too. Kenya, well what's to say. My opinion is keep 20%/25%, sell the rest for cash and a free carry to 1st oil.
The activist investor has apparently rounded up enough institutional investors to block the deal. If so deal done and dusted, unless tullow / cne agree new ratio. And i personally wouldn't agree. CNE have little to offer longer term.
The activist investor has rounded up enough institutional investors to block the deal. Its done and dusted, unless tullow / cne agree new ratio. And i personally wouldn't agree. CNE have little to offer longer term.
How much are tullow giving up, hopefully no more than 30% along with 10.5% from each partner. Whats 51% of this worth? Big difference between 2 and 3 billion. Tlw need an infusion of cash, and whether that eventually goes to capex is irrelevant as it wont be this year. Tullow and co have sunk hefty sums into kenya, and new strategic partner has to assume their portion of the costs to date. Tullow debt too high and static despite excellent oil price.
I think 60 is a magic number in the algorithm and it's working assumption is 60/62p. As oil increases over 105 we start to drop, is that because hedging accounting losses increase after a particular point. The 50/52p related to lower production and ratio related to hedging. Of course none of this matters on high volume days
Not to mention that this 180million includes the previously announced 60million, on top of that it has to be released to be released. These are bandaid measures only, and serve to indicate the degree of seriousness on the production shortfall. I'm sure that this could also annoy OPEC enough to maybe pause monthly incremental increase