RE:RE:RE:Just a question....
Investnowplease wrote: I would imagine a development of a project this size would be in yhe eange of 4-5B. No way they get that for CGX, then they would lose control of the entire project. This is all very interesting as there is no possible way FEC has the expertice or the cash to develope it. Success brings issues they cannot deal with, if its successful. Sure hope it is. Many questions surrounding that, from what has happenned WRT news being released. Its enviable but not in the same sentence.
I think your estimates for this project are to high. Liza 1 was only 3.5 billion, and with the shallower water I would assume the costs would be less, but assuming they are the same FEC would have no problems funding this if they sold CGX. At a small premium to today's price, CGX would sell for a back of the napkin price of $1 billion, $800 million net to FEC. FEC would be on the hook for 33% of the $3.5 billion or about $1.15 billion. I don't follow FEC so I don't know how much cash they currently have on hand, but I do know they have some. Finding financing though for the $350 mil more they would need would be a non issue. You are seeing problems that simply are not there.