RE:Cenkos Likes This Deal Cenkos is Ithaca's joint broker - they are named at the bottom of the NR. Bit like an estate agent selling your a house.
Look at the adjectives:
"Appealing deal" - if I described my girlfriend as appealing she'd dump me,
"Value accretive" - I hope so otherwise why do it?
"Significant uplift in production and reserves" - well yes I would hope they got something for their £100m. But says nothing about valuation.
If Cenkos was my estate agent I'd sack them!
That said, I like the deal. Based on 100 dollar oil and <25m dollar cap ex in subsequent years I see payback in <5 years. On top of that Ithaca describe uplifts in production.
If it is a good deal then consider Ithaca's valuation with 30k boepd from next June and debt essentially paid off 18 months later. Do the maths. Ithaca looks cheap if GSA produces at 16k net and the existing production holds up.
Londoner7