Member Info for sankeys

Zama RNS when it arrives will fall in N America time zone, so afternoon.

It's doesn't have to deepen significantly in absolute terms, what does 10% depth give in % OIP? Much more than 10%.

Unless Big Tone does another Eon deal, unlike the Eon purchase or the convertibles, PMO doesn't have to do any deal at all, as current strategy is fine. They will only do a deal if it is best for PMO and utilises the tax credits.

Zama from the first drill was circa 2bill OIP, with the reserve estimates constrained by no oil water contact, so they would have used lowest known oil point. On Zama 2 if they hit the OWC far lower, then this figure will grow quite significantly. With PMOs share already valued at $300m given the recent sale by a partner - any upside potential to reserves or new play in the deeper play could push that up to $500m plus....

To see any holdings RNSs in the next couple of days. At 24m shares its not been a few PIs bailing on the news story. Has any of the ii's been selling or buying? Will tell alot about the rumour.

There has been no OWC found yet as of Zama 1, that means the OIP estimates have had to predict a level, thus being conservative with no data available. What if the OWC is 50m below the LKO that the reserves would have been based on?
I find it intetesting this rehash article hits a Sunday paper when Zama 2 is closing in on the predicted OWC target....

It's a paper article not a RNS, get a grip. There's of course a number on here who have sold and are doing a ' DBNO ' .

PMO might be looking at the less attractive assets in the portfolio, ones which only work with our tax credits, so they would be free in terms of purchase when you account for commited capital and decom costs. Or am earlier article mentioned PMO entering a partnership, an entity puts cash up front to buy the assets, PMO operate and spend capex thru income and benefit from tax credits. Basically with $4,000,000,000 tax allowance, PMO is always going to be looking at anything that comes up within UKNS.

It can't be a RI , let's say at max they did 1 share for every 2, at a discount plus costs you would get at best £250m - what's that going to buy? Looking at ii buying recently it also doesn't stack up. I suppose the Zama results will maybe give a further indication of what they have got there and what they can sell for.

I don't believe they are looking at all the 1.5b of assets. Placing or RI at this time isnt practical given the SP, the banks wont let them borrow any more. That said anything like the Eon deal would really transform the business. Perhaps a swap deal with Zama? Selling Sea Lion would be good for PMO also. Perhaps the business model should be sell on any exploration success and buy NS production. The quicker they get their hands on the $4b tax credits the quicker debt goes.

For any charting info or advice you should touch base with the avatar DBNO, he is somewhat of a guru on this subject with an uncanny knack of calling the price of oil.

https://www.tripadvisor.co.uk/Attractions-g1096742-Activities-Batley_West_Yorkshire_England.html

Blackrock is also a significant dual holder of Talos and PMO.

Continue to add, wonder if there was an order being filled today?

Trading update.

Different tax for FI, more interesting is the new law that you can transfer some of the tax allowances field to field- or operator to operator. So a large UKNS player could buy PMO and pay for it utilising the allowance.

Zama alone gets it to 90s, there will be bids for PMO Mexico assets by year end. However we still need more UK production to use the $4bill tax allowances.

Nice hint from TD with the current appraisal. A ' giant ' field is not a description but a class - which is 500m and over, 100m higher than the low end volumes from Zama1. Not the kind of terminology you would use unless you already had good data. Strong buy.

One off asset sales have done this. Debt for 2019 will finish circa 2 bill, on revenue of 1.5 bill. It really is no longer an issue

The ' giant ' Zama...... Later the news on Zama the better.