RE: Do the math...or am i way off here?14 Apr 2022 13:06
this post?
its in your history.
RKH will retain a 35% of SL
For cash, short Rockhopper Navitas will provide a loan, with a first instalment pre-FID and later will extend additional financial support to help cover two-thirds of the company's share of development costs. The pre-FID interest will be 8%, and with a positive FID, the loan will be interest-free, and funds repaid from 85% of Rockhopper's working interest share of free cash flow.
RKH will have pay 85% of Free cash flow to pay back the loan (Could take years to pay back)
If RKH and NAvitas choose a low cost option we'd be looking at 40-60k barrels a day from Falkland in the 1st phase....That means roughly RKH would (17,500 barrels x $60 , $40 operating costs - assuming $100 bbl oil and no less) so RKH get $1 million a day or $365 million years, discounting any potential problems......
but RKH lose 85% of that freecashflow?
So Rkh are left with about ($356,000,000/100 * 15) = Around $50 million per year profit..........What the hell can RKH do with $50 million per year, can't grow or anything just pay for sam moodys salary, please tell me my calculator are way off the mark here.
THis is all assuming $100 bbl oil, if its $70 bbl oil, RKH will get like $25 million a year profit, not even enough to keep the lights on