RE: Heron Asset Value $300M+ v Mkt Cap $19M - Gobi Perspective5 Aug 2025 11:31
Und, I’m a bit more conservative than you. Bear in mind, if you own 60% of the block, you need to contribute 60% of the costs. So MATD are limited there.
I’ve seen deals where zero consideration is paid but the new partner commits to drilling x wells in y time frame at their expense. Then we take our share after costs. There will be a penalty payment if they don’t do it of course.
With the market capitalisation at £15 million , I’d take any deal on offer and let someone else deal with all the problems. Take our share and do other things.
Give up 60%/70% equity for a commitment to drill 5 wells per year would be amazing. 100% of 150 bopd is 150bopd. 30% of 2000bopd is 600 bopd.
Give up the equity and take the income. That’s my view anyway.