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Although I am shareholder of only rkh and not pmo but i still think pmo can keep both sealion and zama.
If zama will be phased developed and the cost of first phase development is only like $1billion to $1.5billion gross means premier share would be only $200million to $300million and that would premier production of 10-15k bopd.
Coming to the sealion that will not cost premier a lot as premier is only planning to pay 25% of $1.5billion i.e. $375million. So premier can afford both i.e. zama and sealion.
1500million total cost.
Now if Premier/rkh reduce the number of wells before first oil and drill those wells after first oil so may be they can reduce from $1500million to $1200million.
$400million comes from suppliers
Remaining $800million
Rkh win in the Feb and get $200 million and rkh pay that towards first oil and remaining $600million comes from premier.
No debt
Day dreaming?
1500million required
375million coming from supplier and they are ready, i think
375million coming from premier
750million from the banks?
standard chartered has already signed and is looking for more banks to agree.
how much standard chartered will bring? lets guess 150million
so its a question of $600 million
for project of this size and this much reserves in sealion, should this be a problem? banks can always sell sealion for more than $750million if they want money bank, hope that scenario doesn't come.
Its all speculation as RNS has stated that they might buy part of chevron assets and that will be financed from current cash flow.
There is nothing mentioned about sale of Latin America.
Also if they manage to sale FI on good price to major then good for rockhopper.
Abeilla,
Yes exactly they need to appraise first as fields generally grow during appraisal, then after appraisal the value per barrel so rise as buyer has less risk.
rpoodle,
premier working with FIG on taxes and would be nice if they further reduce tax.
Regarding which to keep and sell, i would say keep part of both to reduce risk.