GREY:STPJF - Post by User
Comment by
nikeherculeson Jul 29, 2014 5:40pm
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Post# 22791837
RE:RE:RE:At least the 18 cent wall is gone
RE:RE:RE:At least the 18 cent wall is gone
He didn't mention a sale price for Senlac, but we did discuss the advantages/disadvantages of drilling Pad L before the deal closes. He mentioned that it really depended on the parties involved whether or not STP would be credited the $20 million for drilling or not. As a general rule though, you'd want to reduce capex during the "strategic review" stage.
Looking back at the November 3, 2009 release, we see Senlac was purchased for $89,000,000 for 5,100 bbls/day - roughly $17,450 per flowing barrel (quite a bargain). I imagine that today's number is well north of that.
Reading the tea leaves though, I think it is less likely Senlac will be sold since the new 1st lien is relatively cheap. Note the third paragraph of the news release indicates the $45,000,000 first lien is secured by Senlac Oil Ltd. To quote Eyeinvestor, "Can't sell the car without paying off the car loan". Can Senlac be worth a maximum of $150,000,000, the amount of the 1st lien?
My IB contact also mentioned a buyer would probably just take out STP whole. No JV or anything like that. So the big breakup fee mentioned earlier would be for everything.
...and Monzie - he chided me for getting too greedy and expecting to slop up shares at 0.15 without anybody else noticing.