RE:RE:Nit Picky Dirk, Wei was never gonna be DSTd. So that point is moot.
However, you touched on a very important subject in a previous post today. What's the resource estimate? That my friend IS the million or billion dollar question.
At various times over the past 2 years Fec has done a pac man on Cgx. Financing Kawa, Kawa cost over runs, carry in Wei, Wei cost over runs etc. Each time Fec acquired more of Cgx via shares or wi in N Corentyne. Each time a gross value was used as the basis for determining the value of N Corentyne; the last being $330m to aquire 4.7% wi. Yes, I've given 0 value for the berbice boat dock / bait shop.
The interesting thing, to me at least, is if the ultimate plan is to farm down or sell out or sell out partially; how does that work?
Sapakara/Krabdagu in blk 58 has a resource estimate of 800m bbls. Lets conservatively (hopefully conservative lol) estimate that N Corentyne is 1/2 that or 400m bbls. With 2 wells I'd assume we've taken a lot of risk out. So again, let's be conservative and use $3 per bbl to value N Corentyne or $1.2b.
If you extrapolate this down to each company's sp you get value of .98 for Cgx and a value of $13 for FEC (Guyana only; nothing for Colombia). Check my math.
Anyone can take the above variables and plug in their own assumptions. This is just the way I view things trying to err on the low side.
So back to my question above. How does the Fec pac man of Cgx pass muster? How can this be sold using a $1.2b gross valuation (using my assumptions above) whether all or part? How can Fec buy so low and potentially in short order sell so high? How can this be justified?
I can only come up with one answer. Time. Put as much time as you can between when you acquired these Cgx's interests and when you ultimately sell. Draw it out as long as possible.
And Dirk, as your Wei DST point was moot, everything I've just said will also be moot if our resource estimate isn't commercial.
Apologies to Kcac for the long post. Lol
Glta and all is imo.