Petrel Resources Share Discussion Threads

[the diddymen] 02/10/2020 17:49

#fojohnpayne520

[lithological heterogeneities] 02/10/2020 17:04

Atleast we are another week closer to still knowing nothing.

[lippe] 02/10/2020 15:31

tread carefully lolz, me and dougal are almost muckers ...

[1teemore] 02/10/2020 15:12

exile -take your pills please

[the diddymen] 02/10/2020 14:50

Exile agreed, the hallmark of a midget.

#fojohnpayne520


TD

[fenners66] 02/10/2020 09:22

"A big Japanese company signs a refinery contract"

Clue ..... BIG.......

Not micro cap with very little money, experience, employees,projects etc.

the gamblers are just selling a dream ....

[kdickson] 02/10/2020 08:56

A big Japanese company signs a refinery contract yesterday. This is 'downstream' so not affected by the need for the INOC law revisions (which are focussed on upstream type contracts).

[the chairman elect] 01/10/2020 17:20

Good to see you about these parts again Fatgreek perhaps time for some plate smashing?

[the sage] 01/10/2020 17:07

I reckon that our CP boys are after the Akkas field. There was talk of it being taken off the operator through lack of activity. And the vehicle they would use to operate the site would be erm..........

[elmfield] 01/10/2020 16:58

Get in there exile....

[ein4] 01/10/2020 16:49

Something on ?

[blakieboy7] 01/10/2020 16:19

Another small tick up

[kdickson] 01/10/2020 16:06

When I say a £2000 punt could turn into £50,000, that's based on the following thoughts:


Merjan share price

The value to Petrel if we 'only' got awarded Merjan-Kifl-West Kifl and it was developed into a 100,000 bopd producer, then that alone would be company changing. Current estimates have total reserves at 760 million barrels (but more likely 1 billion+).

At 100,000 bopd, and assuming we got a 20% profit share, then with a conservative 2021 oil price of £35pb, that would be an annual profit of £255 million per year (100,000 x 365 days x £35pb x 20% share to PET).

That would support a share price of £16 per share.

(£255 m / 157 million = £1.62 earnings per share x PE of 10 = £16.20 ps and mcap of just over £2.5 BILLION).

To check this is reasonable, an alternative valuation method is to value oil in the ground at 10% of oil price, so that's 760 million x £3.50 / 157m shares = £16.94, so similar.

Of course, the market would not value Petrel at £2.5 billion/ £16 ps immediately on a licence  award - several drills would be required to prove up the reserves, although recent 3D seismic would hugely maximise the chances of positive drill results.

Even if the market only factors in 10% of this value immediately then that's still a healthy £1.60 per share. :)