RE: Correction: $ 314 million for 50% share..."Genel owns 40% of the PSC right in Chia, the other 40% belongs to Longford. The Genel 50% share was bought out at $ 314 million. This means its total 100% share of the 40% share in Chia would have been valued at double this or $ 628 million." .......... Hmmm???
Not sure where you think these numbers up?
For starters, document posted on sedar says Genel & Petoil each have a 20% interest and Forbes Manhattan Kurdistan has 40%, with this consortium collectively paying for an additional 20% owned by KRG (see that all interests add to 100%).
You seem to assign about a $300 million value to Genel's interest at Chia Surkh, which looks like a 1/7th share of the total price paid for interests in Geneel's 7 kurd properties. This seems to suggest that all properties were valued equally? Again do you know that Genel's interest is equal in all properties and that their share of reserves are the same on each property. This seems a huge assumption, so please provide some clarification or explanations for your data or assumptions. It is public knowledge that Genel has a 50% interest at Taq Taq, which is producing and where wells tested as much as 45,000 bopd. I would think that this property is valued much higher than any of the other 7 properties(perhaps even collectively higher than the other 6 properties?).
Perhaps, while you are clarifying this, you can also respond with evidence that longford renegotiated the psc terms and that the royalty was reduced from 40% to 10%?
As I previously posted, the 40% was consideration paid by longford to acquire the second 20% interest in the property. As a result, this agreement between lfd and the krg is documented in separate agreement which was confirmed by a pr last summer (1 year after the company acquired its first 20% interest. Certainly, there is no logic why this royalty would be part of the psc and an extra burden that Petoil and Genel would share as it was only lfd that acquired more interest in the property?
Your earlier response was that the psc is all and that it is the only document with any basis on future operations. Of course if this were true, LONGFORD, which is not even mentioned in psc, would have no interest in this block???
Sensible analysis would indicate that Forbes Manhattan Kurdistan has assigned its interest to lfd, initially a 20% interest and then another 20%, which LONGFORD agreed to pay a 40% royalty to acquire.