RE: The Only Way Is Up.........2 Jul 2024 18:11
What no one Is factoring in is this:
CASP looked skint.
So if something is worth 8p but I know that you are skint I offer you 3p, I'd be stupid to offer you 8p, you are desperate and i'm out bargain hunting for oil fields with water contact because that is my business model ( they are water contact and increased recoverability specialists )
Someone's approached them and low balled them, they released an RNS saying they've had an offer but hadn't decided to accept it or not to sell all or part of their fields, but if they did it would recapitalise the Company and leave funds over for either dividend or share buybacks.
They didn't sound very happy with the offer and wanted more.
It points you to what direction they would like to follow if they had cashflow i.e divis and share buybacks to pump the S.P.
They had paid out more than expected getting the Caspian Explorer ready for the contract.
The wells were being drilled and costing them money with no guarantee of results.
They looked like they really needed money and quickly!
What a different picture it is now.
Well 155 has replaced well 142's lost production - production foregone as a result of over producing from it to keep the cashflow on track.
Well 815 on South Yelemes to 1900M is a side track to target the new structure and existing oil field underneath it, expect a good strong flow from that.
Well 803 - New structure much higher up and as deep as any BNG hydrocarbon column, ironically testing 11m because this well was planned for more depth so it starts off thicker at the top like an upside down telescope, it gets thinner as it progresses.
They have to forward order everything from China so the explosive charges are already on site, due to the extra thickness they have to bunch up the explosives to penetrate through the thicker walls and into the oil deposit, therefore 15M test would spread the charge too weakly so theyve reduced it to 11M and increased the sideways energy to get a flow result.
Boat contract confirmed and underway - they are going to get paid - that alone clears all the borrowings.
What was the case a month ago is no longer the case today, today they don't need to sell anything and when you dont need to sell like us unleveraged stock holders what you have in your hand suddenly becomes more valuable and costs others more to buy
;)