ARPETROL LTD V.RPT

Where we are relative to Magdalena

[TheRock07]

With its new acquisition, MVN will have the following valuation indices....

...550 million shares

...$275 million market cap

....11.1 million boe of 2P reserves

....production of 4900 boe/day

These would rate its 2P reserves

......at about $25,000 per boe

Its valuation per flowing boe of $55,000

Its 2P reserves at 20.6 per per 1000 shares

Its production at 9.1 boe per 1000 shares


RPT has  2P reserves at 300 boe per 1000 shares

RPT has production of 10 boe per 1000 shares

RPTs current production would be valued at $12 million

RPTs current 2P reserves would be valued at $170 million

MVN current market cap is 7 times forecast annual cash flows, including the current acquisition.

MVN is 70 % oil which would account for a higher valuation per unit.

However, its forcast netbacks are below average and its RLI is below norm.

RPT has a cash cow in its gas processing plant that will offset a significant amount of any oil versus gas bias.

At 7 times annual cash flows, the gas plant alone would be valued at $38.5 million US.

With a current market cap of just $10 million, we have no where to go but up..

[DocPat]

Well said. 

[TheRock07]

Options for production growth are nearing final decisions. Current producing wells are from 17 orginal deviated wells drilled into the offshore SpringHill formation. Of the original 17 wells into the offshore Springhill ( see RJs graph ), 4 have been permanently abandoned, two are producing and and 1 is a water injection well. That leaves 10 wells that have been suspended for lack of workover

[2j3kl]

This post has been removed in accordance with Community Policy

[TheRock07]

Great Summary Post with additional details. Offshore gas from YPF  accounts for 40 % of the gas plant operations. Another Argentinian company accounts for 35 %. My guess is Pan American Energy. A third company accounts for 21 % of the gas processed. It makes sense that any of these might be sought as a JV partner to develop the Magellanes or the Luck or re-entering and completing the first

[paljoey]

Those four wells would boost cash flows to about $12 million per year. That means Arpetrol is trading at less than 1 times 2014 realizable cash flows. Announcing a JV with Repsol would change that pretty fast.

[ValueCat]

Repsol would sink more $ into the country after what happened to them???

[2j3kl]

This post has been removed in accordance with Community Policy

[TheRock07]

YFP repsol is the corrent name of the ( now ) argentian owned subsidiary of parent Repsol