Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA

Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.

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Cohen & Steers Tax-Adv Pref Secs and Inc Fund > suroco acquired reserves

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Post by HedgieTdoton Oct 01, 2014 11:57am

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Post# 22986864

suroco acquired reserves

a nice update was posted from PTA:
Booked reserves increased as follows:

 Suroco company gross proved reserves grew by 48% from year-end 2013 after accounting for first-half 2014 production;

 Suroco company gross proved plus probable reserves grew by 87% from year-end 2013 after accounting for first-half 2014 production;

Suroco company gross proved plus probable plus possible reserves grew by 134% from year-end 2013 after accounting for first-half 2014 production.

June 30, 2014 After tax 10% discount

$ millions
1P 69.5
2P 133.5
3P 194.2

consider:
GLJ June 30 price deck 2014 $110, 2015 $107.
They paid $120mm all in for Suroco.
But now strip is at $95 going forward. erodes 10% off NPV.
is 10% discount rate right for a risky, interruptible production supply? No. SRN difference NPV 15% vs NPV 10% at year end was a 10% reduction.

FDC not disclosed. P

what is 2P reserve value today on the SRN acquisiton? 20% lower.
before the fact that the press release quotes before royalty reserves, not after. take note those who try to compare to GTE reserves.

so $120mm purchase for less than $90mm of 2P after tax 15% after royalty value.
with more development capital booked.