RE: RE: RE: Let them dreamIf the JV terms is they will be keeping 30%,it means they will be taken to full production so no more share dilution.
If they keep 50%,they will have to do equity finacing for the devopement,so shares are dilute then.
Speaking to someone,they believe they have a lot more than 1 billion barrels.So say 30% of 2-3 billion barrels will give a market cap 6-9 billion dollars,with no more dilution.So the sp could potentially reach $42-63.A lot of oil companies trade in that range,so not unbelievable.
One of the risks with the new 3D seismic no one is talking about,is that the reservoirs may be gas prone.With that depth,the oil could be cracked in situ into natural gas because of the high temps.Also ,the high temps can cause the source rocks to become overmature,and produce gas instead of oil.
They believe that there will be a high gas/oil ratio.