Zama31 May 2018 23:19
Took a look over the presentation slides released by Talos Energy in respect of Zama this evening. Breakeven $19.46/bbl, 1bl reserve. With this kind dev. pipeline we can look forward to a lower production cost portfolio going forward..It's a real asset that I don't think is fully priced in yet. The main risk discount on the share price last 2 years has been solvency. The refinancing was a painful experience but ever since it finalised I think the trajectory has only been in one direction. Catcher operational risk was and still is a factor but the upside here based on price to book vs other peers means IMO this has room to run. Sit tight and relax. I fully expect near term volatility as this rerate picks up pace...give it 2 or 3 weeks and the holdings RNSs will drop, ride the dips and the reward will follow, patience is a virtue.