for first half 2019 average for PMO would be approx. $65 remaining second half, 40% of that is $69 Lets assume worst case that second half POO will be $60, even then average price for PMO for whole year will be $65
above are approx. figure but shows that premier is mostly safe for 2019 unless POO collapse to $45 or below
Yesterday Sound put out a most interesting update with regard to their negotiations on a GSA for the company’s gas reserves in the Tendrara Production Concession in Eastern Morocco. They are continue to negotiate the terms of such a GSA and say that as part of these ongoing negotiations it has received a letter setting out a non-binding offer from the Ministry of Energy and Mines, Kingdom of Morocco.
The offer envisages that all gas production from the Tendrara production concession will be sold under a GSA to Morocco’s state power company ONEE. The agreement is expected to have a variable element linked to the Brent oil price with a fixed element to fully cover transportation of the gas through the the Tendrara Gas Export Pipeline. This would indicate, at a $70-75 Brent oil price a total gas sales price, variable and fixed, of $8.50-9.00 mmBTU assuming a $1/mmBTU pipeline fee.
This proves that the market in Morocco is strong and makes the existing and potential for Sound in the region to be of considerable value, the next few weeks will be potentially very rewarding to the company.