My view is a bit different. I am not blinkered by a share price that is dictated and projected by FAR's current MC. I prefer to view a potential takeover as the opportunity cost to FAR and the predators intent vis-a vis off shore Sinegal.
If we have a bidder looking to take out the COP JV share by taking out FAR the question is not the price they are willing to pay for each FAR share; but rather the per barrel price for a 50% or greater share of off shore Sinegal.
Irrespective of the FAR-CNE interplay needed to acquire the COP asset the crux is the price per barrel of oil in the ground that would be acceptable to the buyer, to FAR and to CNE.
If the buyer is willing to pay $5/barrel to acquire 50% by a TO of FAR and thus a purchase of the FAR-CNE pre-emptive rights then the price would be 32.5 cents per share If it is $7/barrel then it would be 45.5/FAR share.
A bit of cut and paste from my previous post regardin the valuation.
I considered another oil major making a play, which would mean taking out FAR to acquire the 35% COP interest.
This would bring 50% or 280mb of the field into play at current RISC estimates and subject to DOC.
Given the in the ground $(4-8)/barrel bandied around by by the industry I considered a figure of $5 to $7 per barrel as an acceptable expectation.
The minimum range of $5/barrel would give a value of 280,000,000x5=$1,400,000,000/4,300,000,000shares = 32.5 cents/share.
The maximum range of $7/barrel would give 7/5=1.4x32.5=45.5 cents.
Which leaves me comfortable with Malcy's figure of 25 cents or more.
However WPL or any other company decide to 'play the takeover' it should not be at steep discount to the 32.5 to 45.5 values. cheers
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Last
46.5¢ |
Change
-0.005(1.06%) |
Mkt cap ! $42.97M |
Open | High | Low | Value | Volume |
47.0¢ | 47.0¢ | 45.5¢ | $31.34K | 67.88K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3338 | 46.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
47.0¢ | 199900 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 90826 | 0.455 |
2 | 51822 | 0.450 |
1 | 50000 | 0.445 |
1 | 50000 | 0.440 |
1 | 50000 | 0.425 |
Price($) | Vol. | No. |
---|---|---|
0.500 | 10000 | 1 |
0.510 | 220895 | 4 |
0.515 | 103300 | 2 |
0.520 | 421965 | 4 |
0.525 | 100000 | 1 |
Last trade - 15.59pm 13/09/2024 (20 minute delay) ? |
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