Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
That's big, but still translates to propping up supply. OPEC + will act on that. One point about strategic reserve is when it was auctioned in 2016/17 shell refused to buy because it was very sour. Is that not true for most of strategic reserve? Only so much of that oil can pass through the current refinery set up in the US, unless to export
Is there anything there that's unexpected?
Most striking point from presentation is 1.5x gearing at end 2023, at $75 oil. That's 2 years ahead of plan. Incremental increase in jubilee prod to 115kbod/2025.
Gas to monetize in 2023, at 6kboed.
Hedging is crazy, big paper losses last year and this year. The only way to avoid is massive crash in oilprice. Goldman predicts 135$ average for year.
Above is paper loss, if oil averages 135/ the deleveraging will come mid 2023.
Hedged at avg 77 on 43kbod, cost 1.8$. The difference between your 70 and 75.2 is 82million/ year. Seems not insignificant, there is 13/18kbod exposed to spot market, or 18/23kbod assuming premption go without a hitch. The main issue for tlw in its path to debt reduction is the production at TEN and that will be addressed in 2023,