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Tell you what I'll do, I'll add in the decommissioning costs too and recalculate it because, ultimately the share holder pays for everything in terms of the share price and that's the point I was trying to make
Thought exercise for a hung over Saturday.
Reserves of the BP assets equal to 25 million according to this article.
https://www.insider.co.uk/news/premier-oil-buys-assets-bp-21229025
Lets err on the side of caution and lower that to 20million to account for this years production.
Let set the OPEX at $17/boe- $43-$17= $26 Earnings/boe
Lifetime earnings @ Brent $43 26 X 20million = $520,000,000 or £416,000,000GBP
Amount of new shares required to raise the equity for purchase GBP/USD @ 1.25= $210/.4172*1.25 = 402,684,564
Lifetime earnings + current Mkt cap = 416,000,000 + 388,671,000 = 804,671,000
New shares + outstanding shares amount = 402,684,564 + 922,030,000 = 1,324,714,564
New realised share price based on dilution alone = 908,671,000/1,324,714,564 = .6859
RI info
I must have missed this
https://www.marketwatch.com/story/premier-oil-says-price-of-bp-aquisitions-slashed-2020-06-05
Wheeeeey ;)
Target for what? A buy?
Can't Oil moving outside a $3ish range for the next while. Just can't see a catalyst in the foreseeable. Until we start to see hard data to suggest demand is going to over shoot the over supply we are not going to see major gains. I think we will see it over the next 2 months. Market will be expecting big draws for the next few weeks I think.
OPEC playing the game well for now
Don't think it would be revenue that would go towards paying for the asset. Earnings yes.
Even at current oil prices I calculated that the earnings from this asset purchase would pay for it and decommissioning in about 2 years. This time scale gets exponentially less with rising oil prices
I agree with dodger. Whatever why they raise the capital its value added.
Unless they could raise some serious capital they`re not going to be in the market for NS assets. Anyone got any theories on how they might go about raising capital for such an acquisition?
What you gonna get for that?
Mad swings. Cudos to whoever said wait until lunch time
Oh, I'm sure they'll find the cash somewhere. It wouldn't be massive and may be financed based how much of Zama they are untitled to
Well it's important Darth, because you couldn't base earnings from Tormount on the price of Brent.
BOE is a little misleading. Sounds better than it is for a reason. Gas prices should be a hell of a lot better by next year too though. It's a nice little project but nothing like Catcher
Cash, Mexico have given Talos and Pemex 6 months to sort it out. Pemex will likely have to come in on the project and will have have to fork out some money toward to invest already made by the current holders. For this they will get some share in the field based on all the available data.
https://www.worldoil.com/news/2020/7/13/mexico-instructs-talos-and-pemex-to-unite-the-zama-field-across-two-blocks
Let's just call tormount 145000 mmBTU for the sake of clarity
Boepd to be fair. Mostly oil though, correct
All the talk is of tapering the cut from August. Now, if that sends the oil price down I expect a quick rebound because it should really be priced in, it's bee on the cards for weeks. EIA could also interesting mover today
To support current operations SK. It's a fair point
Disappointed on debt but given the current year, hardly surprising now is it. Adding 10kopd is really something though.
100,000,000 extra in earnings and all we get is 10 lousy percent. Surely this will keep going today
That's great news on Solan. Wasn't expecting that.