Gas reserve value to a majorGreetings, all,
As we know from previous posts and news releases, the Argentine government has announced a large price increase for delivered new gas production from major producers. As I recall it will be $7.50 US per GJ/mcf instead of the current price of around $2.75. In effect, that means the RPT gas reserves (P1 and P2 and up) are worth much more to a major than to RPT at this point in time. It is possible the price increase may be extended to junior companies, but given RPT is trying to pursue its strategic directions in the corporate update, a sale or trade with a major may well be possible. That means with good negotiation RPT should be able to capture some of the additional value of reserves in anything RPT gets back from a major partner.
WC