Vast is giving up This is actually 2 month old news from Groundstar, who own 6% of the block Vast is in. From the statement, Noko and Vast are also looking at farming out or selling the property. My biggest concern is if they do sell they may try to do a Longford on us.
"The Consortium has entered into negotiations relating to
relinquishment of the Block and is evaluating all farm-out or potential divestiture scenarios"
The Longford selling price was $68MM for a 40% share of their block which had a 40% royalty rate, so their effective ownership was 24%. This leads to a full value of the block of $283MM. Longford owed the KRG something like $32MM but I believe Vast has no current obligations to the KRG
Vast has 25% of the QD block with a 15% royalty, so effective ownership is 21.25%. Based on $283MM full value sale, Vast would get around $60MM or $.23/share. Less expenses and it becomes closer to 20 cents
To counter this, Groundstar estimated their 6% interest was worth only $1.5MM, which translates to $6.25MM or 2.5 cents per share for Vast. Groundstar also stated they did not have a good handle on what the value of the block is worth. It depends on what a company is willing to pay.
"The Consortium has entered into negotiations relating to
relinquishment of the Block and is evaluating all farm-out or potential divestiture scenarios"