Yeah, its an unusual deal. Ophir group (OXX plus two others) are being paid a fee to own the facility and produce the oil (which is owned by the Malaysians). I'd like to see some modelling of returns, for ex, does the cap cost being 40% less mean a higher ROR for JV / OXX? The Opex will also be much less due to bottom of barrel pricing for FPSO etc. The whole OXX situation is perplexing, they are capped at A$7.8M? Ascalon should be worth multiples of that by itself (P50 of 3tcf). The Ophir JV has put / call opts to Petronas at rates multiples of current MV. The WA-387-P is just another wildcard asset that is potentially company making. Happy to pick up any cheap stock floating around, it has to have a big rerate at some point (I hope).
Go Western Bulldogs !!!!!!!!!
OXX Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
