Member Info for Slift

There's nothing wrong with those numbers.

You need to learn more about 2P reserves and 2C resources. Then you'll understand why Tullow has stated 5m 2P reserves for 10% stake and why Panoro has stated 19m 2P reserves for 17.5% stake.

But bottom line: The value we're getting is a RIP OFF.
Heck, even in that panoro presentation, the CEO states that the prices were discussed when Brent was at $40/barrel.

SAY NO TO EG ASSETS.

Please for once can you just google what 2P reserves are and what 2C resources are?

EG: 14m barrels 2P reserves, 26m 2C resources.
Gabon: 5m barrels 2P reserves, 5m 2C resources.

Production was meant to be over 100k+ by YE19.

Also, check this out from Panoro:
https://vimeo.com/user126234410/review/513739857/77a475c5e7

Idk you tell me.

There was further reductions in productions in the same update to COO/CEO.
Was approx. 22k bopd for the full year.

Since you probably didn't go learn about 2P reserves and 2C resources, i'll tell you.
Loss of 22k bopd in 2019-2020 is equivalent to approx. 90-100m+ 2P reserves relocation to 2C resources. This had a significant impact on the balance sheet.

But hey, i'll let you go learn about finance yourself and take a CFA exam to understand it.
Enlighten me when you have completed your CFA!

The CEO and COO resignation + Cathy/Les call came after.

Which cost the company a further 70p/share.

Jubileey,

EG is a loss of 4.8k barrels/day in 2021, 5.1k barrels/day in 2022, and potentially 6-8k barrels/day in 2023+.

Going back to 2019, it was loss of 16k barrels/day that cost the company 80p/share.
Obviously, the loss in 16k bopd had other effects such as lack of performance, RBL, fear, etc which also contributed.

But you get the idea.

Okay fine, even though the assets are independent (as per RNS) sales.

Looking at both the assets together, the deal is value accretive until approx. $65/barrel average for 2021/2022. Thereafter it is not value accretive.

To me, it seems like that the company is getting ready to sell to a larger player, by exiting EG and slimming their portfolio (Don't forget a lot of exploration license has been relinquished!).
It's no longer "The Group with interests in over 70 exploration and production licences across 15 countries" as it says even on recent RNS'.

As for Kenya, I wouldn't be surprised if Tullow exits Kenya in a similar deal with Uganda/Panoro with contingent payments.
Would be good to keep say 10-20% of the stake, but then I ask myself, is it worth splashing all that CAPEX developing the asset for 6k (10%) to 12k (20%) bopd (in the foundation phase)?
All of a sudden, EG assets look valuable af. The breakeven for Kenya will be much higher than EG due to onshore and pipeline costs.

Also regarding impact over years...
There's "technical potential" to extend production license at EG to 2050 and beyond.

I hope you and everyone else see where i'm coming from.

Android101,

No, Les decided on this to provide a "value accretive" sale for balance sheet + liquidity.
Except.. EG assets are only "value accretive" if you consider $50-55/barrel for 2021 and 2022.

If oil prices averages more than $55/barrel for both of these years, then this deal really sucks. It isn't value accretive and really has an impact on the growth of this company.

P.S. This is EG assets, the Gabon assets are good value.
P.S.S. The 7bn cashflow is reduced with this sale.

Personally have a target of 75-100kt this year for HMI.

It'll be very impressive to do above 100kt, but I believe that they may need more CAPEX upgrades to provide the flexibility to do above 100kt as sales are seasonal.
However, they could achieve up closer to 200kt if they were operating 24 hours a day in planting seasons to meet sales.

How about an extra 4,800 barrels/day @ $100 by saying NO to sale of EG assets?

Lemming99,

The $500m from RNS is the operating cashflow. The "operating" cashflow only accounts for operating costs.
Furthermore, the statement(s) in that RNS regarding cashflow would be irrelevant/redundant following the sale of EG/Gabon assets.

"How did the maths look?"

Try c. $32m FCF per month at $64/barrel oil price (Subject to cost savings from sale of EG/Gabon assets).

P.S. Say NO to sale of EG assets.

You drive a truck so you can transport yo momma?

Let's be 8 together c:

PlantyBHA,

Mum jokes. Are you 8?

Extended auction.

Nothing of significance.

Lol

Yo Dickbatty,

Stop being a right DICKbat and get on Grindr! Leave me alone!!

And no, I will not buy back in here, or at least not until FWP is fully funded and BOD change the ways they treat shareholders.

And even then, probably not! HUR isn't the only oil company out there and I am heavily invested in oil.

But yes, please do brag and gloat about your investment that no one wants to hear!

Yes, you're right!
I've upped my limit offer now, to 1 whole pence per share!

Bransonbull,

It was, until the "brutal kitchen sink" where HUR stated they will seek out stakeholders to fund the FWP.

There is STILL significant potential here with all of HUR's assets even after the downgrade in reserves and resources. I mean HUR still has over 100m+ barrels in resources in just Lincoln and Lancaster.

But I don't believe there's any potential for PI's here. The BOD will sell you out to protect their paychecks and the keep the company as a going concern.
The only ones that will take advantage of this "significant potential" would be bondholders and those that fund the FWP.
So far, I haven't seen any mention of a rights issue to give PI's an opportunity aswell.

Not bitter, maybe sarcastic!

"IMOO"
I didn't ask for your opinion!