ARPETROL LTD V.RPT

Discussion

[Shortylongback]

So with the state of oil/gas industry today.....in your guys opinions, what would be RPT's best move right now?
1: try and sell all assets in Argentina?
2: start tapping into there reserves again?
3: sit back and wait out the downturn as the gas plant is and will be making
 them cash for the next 5 years minimum?
4: maybe expand the gas plant?

[JRParker]

I was thinking that time may be ticking on the concession which could create pressure to secure with production but it does not expire until 2026. So with steady cash flow and lots of time to work with they will not be in a position where they have to realize assets for less than they are worth. Correct?

[groundpounder2]

My thoughts are they would like a commitment from YPF and/or Sipetrol that they will use the current gas processing plant for all new off-shore production.  If they get that then they start looking at expansion.  At this point YPF or Sipetrol are crunching the numbers to see if it makes sense to buy the plant now and save in future costs.  Oh and by way YPF and Sipetrol  take a

[westcoast1000]

Thanks for these useful posts. I think the gas plant expansion is something that would be financed by YPF or Sipetrol, but RPT main remain partial owners. I think groundpounder summed up the situation well.

[2j3kl]

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