RE: oil price outlook16 Jul 2021 23:39
Evening Dick, hope you are getting back to fighting strength? I have just read a Sh@rePr0phets article about newly listed Orcadian Energy (ORCA). I appreciate your interests are limited in just a couple of Oilers these days but wanted to see if you had seen the prospectus and had any opinion on the business case? A brief extract from the Peter Brailey article :
"The placing has raised some £3 million gross. That is sufficient we are told to progress the FPSO project definition stage and move towards Field Development Plan approval. The time estimate for this is stated at 9 months. Without question further funding will be required to bring the project to FID. The question is if this can be achieved via farm-out or will further equity need to be raised? I suspect raising further equity in the fullness of time will be required in order to maximise the net value of the asset, but this is looking well into the future and I see the oil sector remaining very buoyant as we move into next year and beyond. One cannot ignore near 80 million barrels of confirmed 2P which would be very attractive to existing indebted operators..."
As always, would welcome your comments, Cheers Chris