RE: RE: RE: RE: RE: Petrodorado Divests Peru Block So called NAV is going to get dinged.
The divestiture of Peru is good, only because the wells are absurdly expensive and PDQ can't afford them. The sale price isn't bad, not great. It is probably just an equalizer of sunk costs. They spent about 10M on Peru 138, not sure how much on 135. They had huge blue-sky potential, but the COS was terrible and it would have been absurdly expensive to drill. The 15M will go a long way towards drilling the heck out of CPO-5. Net cost per well is in the vicinity of $3M, so will allow them more shots at a goal before cash runs out. Also puts current cash at over 80% of market cap. i.e about $15-20M in market cap for CPO-5, Talora, Tacacho, Bugainvilles and possibly Paraguay (hopefully).
Dorado-1x is apparently targetting a 30MM bbls pool gross (20M net PDQ). COS is solid at 36%. From everything I've read the real risk is the flow rates. Also, cost to drill is very reasonable after farmout.
Peru divestiture was an unfortunate necessity.