RE: What happened to Morpheous spud?Until Jacky is up and running and Beatrice officially gets closed you can’t blame management for being cautious. The Bravo platform needs money to be brought back online as it was shut down 2 years ago due to corrosion. This is not part of the US$60mm letter of credit IAE got from RBS. So IAE has to pony up their own $ to get it producing again.
Who knows what that will cost? I have no idea. That’s why I never placed it in my numbers. It’s all spec.
They might be looking at another deal. Who knows again? Stella came out of left field.
Personally I’m more interested that Pallas got proposed. It’s an operated large oil target @70%WI compared to a non-operated small-to-mid-sized gas play @ 35%WI in Morpheus.
The latest web presentation from Paris has Beatrice operation costs at $75/bo.
Once Jacky + Bravo platform are tied into Alpha Platform op costs of all Beatrice area production drop to $10-15/bo. Jacky’s production is tax free until payout, so netbacks would be US$115-120/bo @ $130 oil. The rest of Beatrice production would be taxed at 50%. So after-tax CF would be around the following in year one:
Using $115 pre-tax netbacks and 350 producing days
Alpha + Bravo = (1,800+800 bod)(US$115)(1/2)(350 days) = US$52.32 mm
Jacky = (5,000 bod)(US$115)(350 days) = US$201.25 mm
Total = US$253.57 mm