Cheers for the article melinvest.Very interesting stuff, if...

Cheers for the article melinvest.

Very interesting stuff, if nothing else because Ord Minnett values 27% of Beibu $315 million, or with a 2P net of 7.6mmbo to HZN, at $41.5 per barrel. That would mean ROCs 2P of 5.4mmbo is worth $224 million alone.

It will be interesting to see how this plays out, as I doubt ROC is going to be able to buy HZN entire stake... Even with its cash of around $70 million, and debt facilities of $66, thats not even half of what is required if they pay Ord Minnetts price.

I do however think that because production from the field has just peaked, there might be some discount to the above numbers, even though there is a good chance further resources can be added to the project, that all costs money.

Perhaps CNOOC will add to their position as well? Which would make it easier for ROC to purchase, perhaps 15% of the project, which I assume ROC will be able to do through an increase to it loans facilities.