RE:RE:RE:Tourmaline candidate"What do you think of a Kelt/Tou 50/50 JV to develop Oak/Flatrock and Wembley with an eye to reaching 200,000 boepd (50% liquids) by 2023? Tou puts in $500M (TOU share issue) cash, Kelt vends in the lands, Topaz chips in $300M, the remaining funds from cashflow and bank loans. Liquids rich third leg for TOU. Crystallize Kelt valuation today with future upside.'
Anything is possible when there's a noose around your neck and companies, ceo's or folks will do almost ANYTHING to survive. BUT imo very unlikely becuase it's not in Kelt's interest or style to do something like that. Besides, why go to all the trouble of developing Inga over many years with all those sunken costs just to sell it and restart over again with a property righr next ddor? It's not logical to me and crazy imo. The first thing Kelt needs to discover is if they are willing to stick around or not. Maybe mgmt already had that answer BEFORE they sold Inga to ConocoP. The problem we have here is that the rest of the market, investors & the s/h don't know exactly what are Kelt's intentions. Acquirer or acquiree? Buyer or seller? They are really one of the few ep's trapped in between both roles and who have the capacity to be both. Until Kelt mgmt gives us some indication where they are headed, the stock price will be stuck at these levels indefintely.....especially being an oil weighted micro name. Maybe they will soon with the next significant move. I sold out long ago for those exact reasons. So until i see some sort of direction, debt free or not, i don't rec'd people invest to heavily here or the O&G sector in general.
You have to understand that the sector has been decimated and is going through a major transformational process at the SAME time that it is trying to consolidate a VERY fragmented industry. Any surviving company is looking to add instant production value, not spending huge budgets for development or exploration. Not now anyway, maybe in a year or two for those that survive. That's my take anyway, people are free to disagree.
Good luck to all