RE: Waiting for Godot24 Sep 2019 09:25
'I say this, if the Sound assets were.marketable someone would be in by now with a 15-20p offer which is a 100-150% premium which I believe most would take. I'm sorry but I just dont see it happening.
If it were me, I'd see better chances in the likes of Eco or Hur for restoration of capital loss as eve though SP's are much higher if their good news continues they can be more sure of 3 or 4 bagging than I think is likely here.'
I'm afraid the use of a 'premium' won't work here in the way you suggest. In O&G, as long as the company isn't distressed (Sound isn't right now, and has shown it can raise cash), you need to make an offer in relation to NPV. A strong position would result in a premium to NPV and vice versa. Using recent sales of fields for reference, your valuation would be based on a fire sale of just the Horst, ignoring the rest of the assets.