RE:Next steps for RPT? What are the values of the alternativesThank you for attending the AGM and your detailed report of the important proceedings related to monetization and development options.
Just making an initial start at resuming production growth would give the share price a boost and could triple production quite quickly.....4-5 wells.
Some of that could be done with the preliminary capex for H2..about a $million.
Increasing gas processing is a low risk venture, as there are no exploration or development costs.
On this board, we have scoped that a gas plant capable of separating liquids is worth about $1 million per 1MMCFD of gas processed.
I like this option very much as Arpetrol can come to the table with a very cash flow rich gas processing plant as a barganing position.
Clearly, getting a JV to develop the offshore FV reservoir which has a nominal discounted value of about $3.30 per share.
Three wells there could produce about 5000 to 6000 boepd.
Even better, throw in the two onshore concessions of FV along with the Offshore.
Petrobras have what it takes to JV all of these three concessions while, being a major gas customer of the gas plant, it would be advantageous to JV the expansion of the plant.
Our market is currently just $12 million or two times annual cash flows.
Our asset base suggests that we should be somewhere above $2 per share, if we get a significant development /production gains underway.