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Same thing than buybacks but organised as 1 sole transaction, the company decides the amount of shares it wants to acquire and the price range of the tender, then shareholders can bid their shares at their desired price within the given range
Https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-67631013
Well said, Charlie. Confidence must be restored and this RNS demonstrates that they are in the right path. Crossing fingers for them continuing the good trend. I hope they don't repeat past mistakes.
That's the market telling you how good the deal is and how little it trusts Blakeley
That sounds great but who is going to spend millions in refurbishing an old plant that will be used to treat the gas from several wells that have been problematic? State 16-2 has its own problems, 36-2 is a big unknown and the existing wells didn't produce high volumes and have been shut-in for years. The problem here is that the Zephyr gang has overpromised and underdelivered in Paradox Basin for the last 2 years. Waiting for the cashflow from Slawson to pay for this will delay it another 6 months at least. As I said before, I think the company will need to raise equity and/or debt to fund all the projects.
BTW, I'm saying it isn't excellent, I think it is a very mediocre deal. Although, I'm still excited for Akatara first gas next year. The key is to see some production stability in the next few months.
Please, do the math next time before writing such misguided remark. Listen what the company said: it will pay for itself in the next 2 liftings (which I doubt because I'm sure they will see capex in 2024). Unless, they sell the oil in next lifting at $200/bbl, maybe that was your expected oil price.
And that business model works and it very profitable when YOU BUY CHEAP, like the acquisitions in Malaysia
Buying another stake in assets that require infill drilling to control decline with more than $100M in liabilities is precisely the opposite of good for cash generation.
JSE is assuming a $100 million liability for 2,300-2,500 bopd, are you telling me this is more value accretive for shareholders than buying its own shares? He can buy at least a third of its own stock that is producing more than 13,000 boepd at this moment. No cashflow generation until 2026 at least. Instead top management will assume this monster amount and will pay themselves a bonus.
Blakeley should be out for retirement, his good days are over.
Downhole pressure is 1 aspect but not the only one. Without the required permeability, pressure will drop very fast, something like it happened in Federal 28, there is flush production that quickly declines.
Many of you (not everyone) in this board know nothing but to insult and repeat what the company says without a hint of critical thinking, I truly pity you. For god's sake, stop repeating the fallacy of authority and look at what has happened at Paradox in the last 12 months. Yesterday Colin recognised in the interview that 16-2 is ready to produce but they don't have secured the contracts and the infrastructure for selling the gas. Again, if that doesn't make you get mad at how the board is making decisions, particularly when Zephyr owns 100% of any production from 16-2 or 28-11, I don't know what could trigger any kind of critical response. I guess your bagholding makes you partial and need the share price to recover without any kind of criticism to the company. Again, I pity those acting like a sect rather than investors.
I'm not a shareholder but I'll be furious seeing they are paying $0.6M for more acreage with the condition of spending $6M, instead of completing the gas infrastructure and begin production from 16-2 and 28-11. Since I first came across this company I have hoped they closed the gas sales agreement and prepared 16-2 for production of oil and gas to finance the remaining development of Paradox, following the most elemental process: drill, complete and tie-in, over and over.
I still hope they solve current issues and extract value from Paradox, but they may need new faces with different ideas for that to happen.