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Exactly seekingalpha.
2C resources will have been transferred to 2P reserves as part of the gas injector boosting pressure and hence production.
However, the oil find at the base of the well as you say would extend the field and also derisks future wells in the area. This find would be a boost to the 2C resources.
The Gas injector was essentially drilled in between Ntomme, Ntomme Far West and Tweneboa.
It's no secret that there is significant amount of oil in Ntomme. However, the development of Ntomme Far West isn't till late 2022 or even 2023.
But what the Gas injector also shows is that there may be more oil than first thought in Tweneboa (which is currently predominantly gas).
Positive.. However, it would be good if Tullow could enlighten us more on their development plan in TEN, especially now that they've bought additional 7.7% stake in the fields. 54.84% stake, with a significant amount of recoverable oil still left in place is definitely material for the transformation of this company.
I don't believe that current production of TEN will "self fund" development. Jubilee will be "self funding" the JV for development of TEN.
2022/2023 will reveal more on the progress of the business plan.
$150m effective as at 1st April 2021.
Consideration will be approx. $125m currently for the 7.7% stake (on an overall basis as the liftings are taken into account).
What's also to note is that this transaction is SIGNIFICANTLY positive for the balance sheet.
Once complete, expect full year results to post a profit on an overall basis with net assets finally turning positive.
Not only is it good for balance sheet, a positive net assets on the accounting basis provides Tullow with more financial leverage for future endeavours and other financial matters.
Scrodingerscat,
Yes very true, but the CAPEX is self funded by the asset. The decommissioning costs are also accounted for in the free cash flow. So not really negative at all.
This asset is also value accretive at $55/barrel (in line with Tullows' forward plan.
If anything the requirements to aim towards carbon neutral is going to be more of a hit with more stake. But hopefully again be funded by FCF from the asset acquired.
As a side note, Petro SA have also pre-empted their rights.
You're not very bright are you Jubilee?
It's CURRENT PRICE to CURRENT EARNINGS ratio.
It's 187 (it's not years either btw) because investors believe future earnings will be a lot higher than current earnings.
Or in other words, growth potential.
Seekingalpha,
My understanding is that the transaction is already closed as of 13th October and Tullow and other JV partners have 30 days from that date to pre-empt their rights.
Tullow and other JV partners have most likely been made aware of the talks/transaction prior to the announcement.
12 days remain before pre-emption rights period ends.
I'd be very very surprised if Tullow doesn't take up the additional Ghana stake via pre-emption rights.
Especially as the entire forward/business plan is pinned on Ghana development.
Less than 2 weeks remain before decision.
Supercooper,
$300m for the asset alone.
50% CAPEX costs @ $1.7b adds this to the value of the asset.
So all in all, the asset is valued at $2b for the 40% developed stake Tullow will retain following development.
Considering that Kosmos paid $550m for DEVELOPED assets of 104m 2p reserves in Ghana..
If you believe that the Kenya asset is worth more, go ahead.