Owngoal - I think that is something they should definitely consider, but likely they would have to use the proceeds to pay down some of the senior debt. Either way the existing projects will be marginal economic at current prices, I would expect the project level operating costs (i.e. excluding amortisation of capital costs) will be 15-30$/bbl. So margins are dropping but clearly still positive.
For all the commentary flying around at the moment (not on hot copper but in mainstream media) it is very rare for existing wells to be shut in when oil price falls. Even in the US shale plays marginal operating costs are typically ~20-30$/bbl (when non-recurring costs like workers are included). So existing production will not be shut in.....the challenge is that projects are not economic when capital costs are included so hard to justify new production, but obviously that is not a consideration where costs are sunk.
On a separate issue, apparently Nama is through the reservoir.
HZN Price at posting:
15.0¢ Sentiment: Hold Disclosure: Not Held
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