Think the writing is on the wall as as per their 27Dec13 release, ie partial/full sale.
Both DV & LDM must have had a good look at the various scenarios prior to making that sort of call.
Main concern for them is obviously 'Debt'. How soon can they pay it off o r drag it on.
With $134.7mil net debt & current mkt cap of 88mil, EV is $223mil.
Net assets r worth $309mil or 23.2c/share.
Should Longtom operate trouble free for the next 2 qtr, b4 EOFY then that will bring in apprx $55-66mil in total revenue (pre tax, ie).
So repetition of this over xx years will bring the debt down, but they r also paying 6.65% interest qtrly & royalty to Liberty. This scenario doesn't highlight any growth for the company, hence the 'For sale' option.
The nxt argument would b ok lets ramp up gasflow frm LT.
They will need more capital to reenter LT#4 to open the sliding sleeve which protects the 400 sands. This reservoir isn't flowing & mayb is their plan-B. (Pls refer their last Annual report). This re-entry can b done when they hire a rig to drill LT-5 at some point in late 2014. Again u r looking at atleast $50mil for drilling + completions + tie up to existing pipeline.
As for Echuca Shoals, the well that Inpex r planning in WA-341P is apprx 3.5kms north of NXS's permit WA-377P.
If that well comes up dry, then Echuca cant b used as a bluff card.
So to a cashed up player, total asset value of $309mil may look ok for a producing asset like Longtom with a renewed GSA with Santos & remaining drillable prospects (Mashmaker, Auriga etc).
Should b an interesting 6-12 months, if LDM locks in a buyer/s. Just my thoughts for now.
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20.0¢ |
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Mkt cap ! $58.43M |
Open | High | Low | Value | Volume |
20.0¢ | 20.0¢ | 20.0¢ | $7.298K | 36.49K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 2090 | 19.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
20.0¢ | 7938 | 2 |
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No. | Vol. | Price($) |
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1 | 2090 | 0.190 |
3 | 81631 | 0.185 |
6 | 135794 | 0.180 |
2 | 17800 | 0.175 |
2 | 21000 | 0.170 |
Price($) | Vol. | No. |
---|---|---|
0.200 | 7938 | 2 |
0.205 | 7298 | 1 |
0.220 | 88792 | 2 |
0.225 | 4444 | 1 |
0.250 | 28990 | 2 |
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