I refer you to a previous post of mine where I mulled that, at 5 mmboe, the share price, under circumstances outlined, could be worth as much as $4.66 to a trader such as Itochu Corporation who bought BPT's “Proved and Probable” oil reserves at a price of A$31.54/barrel in the Basker and Manta fields in the Gippsland Basin(GMB)being the end value to Itochu with the then current Tapis price of crude being A$135 (currently A$140).
The sp $4.66 was the potential end value of the purchased oil if TDO sold to the likes of Itochu with a share price for TDO at 34% being $1-59.
This is, of course, a totally different approach by the giant, cashed up, trading house Itochu.
Inevitably junior oilers keep drilling for oil/gas with no thought of a dividend to shareholders except through the potential gain in sp.
A trading company approach is buy/sell and give their shareholders a dividend.
So, TDO could sell their 2P reserves in WSH, the Directors and staff could retain their positions and shareholders could gain.
Cheers,
TDO Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
