OTCPK:WSRLF - Post by User
Comment by
canadafoxon Feb 12, 2015 10:34am
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Post# 23421832
RE:Canadafox
RE:Canadafoxu; I am not an accountant but REPSOL have never expressed any interest in TLM's more marginal businesses like the NS and Kurdistan. The deal was done primarily for TLM's excellent shale assets and ( from memory ) some Asian properties. Perhaps REPSOL have some large tax liabilities that they can offset against write-offs of this nature? It is normal in a change of business ownership for the incoming party to 'kitchen-sink' any impaired assets. The new CFO will not want his reputation smeared by having to explain in future why some acquired book asset has fallen in value during his watch. Better to throw it overboard with a lead weight round its neck before taking the wheel. If it is kept and increases in value then 'Look, I'm a genius'. But, not my area.
I expect TLM/Repsol to exit K44.
K44 has been a disappointment so far but there is a lot of gas on the TK-K field ( 3 TCF ? ) and the KRG are certainly very interested in that. We also know there is oil and this is investors' main interest. We do not yet however have a definitive OWC to allow proper volumetrics. WZR are now the experience-holders for the TK-K field assuming TLM are out. This IMO should place them in a much stronger position with the KRG as and when they have to deal with TLM's exit. We shall soon see.
The POO background pretty much guarantees severe pain for any investor in any small E&P.