new research cannocard, page-28

I think I have over-compensated and ignored too many. Its becoming increasingly hard to follow the general line of conversation.

TShirt, our IB arm will happily lend to NEN on reserves or no reserves. We do tiered revolver style term notes or hybrids all the time secured by the NPVs, PDs/PUDs, cashflows from unrelated projects etc. We risk-weight against these.

eg: IB would be salivating at:
NSA=1P 3.4mmbbl
PV=1P 1.8mmbbl (7.3mmbbl 2P!)

In fact if I was OXY I'd freely give the cash to NEN for PD based on OOIP 200mmbl.

With Johan moving to Cannacord (in addition to the rest of the team) they'll easily secure finance if needed. JV partners also weigh in on financing decisions. With a supermajor (ENI) there, including PVn (govt) back-in, it would be a low risk proposition. From a financing perspective its a dream scenario - taking private funds and lending to a public org.

Whether debt or equity the risk assessment is the same; by doing 'a' (lend or acquire), what is the probability of getting 'c' back (return).