re: Ann: PKO: Peak Rights Issue Revised Offer...
What you guys think of the PKO merger?
Net assets over $11.9m.
Losing about $2.5m pa.
Market cap is $4.3m at 0.9c, guessing we'll pay around $6m.
The proposed transfer of their 25% interest in the Cadlao project is supposedly worth $6.5-7m to Cadco. I think PKO holders are fed up with this transfer because it is taking a lot longer than expected for Cadco to get the necessary funding for this to happen. Still NPV of the project is over $100m so it would seem it will happen at some point.
Their additional 16.25% holding in the project is more complicated "This interest is not in dispute and has a value of around US$20m based on the valuation metrics advised by Cadco. In accordance with the purchase terms, Peak is obligated to fund VenturOil’s full 20% WI in the Cadlao Field which, on current capex estimates, is likely to be US$9 – 12m including costs accrued to date, plus make payments of US$1.4m from each of the first two sales cargoes." To me it almost sounds like that 16.25% is a liability as they would have to fund their 16.25% as well wouldn't they? I must be wrong here so if anyone understands this better please yell out.
OXX Price at posting:
25.0¢ Sentiment: Hold Disclosure: Held
