Quadrant being prepared for ipo, page-4

Boz2112,

Its mainly the uncertainties that the market dislike. At the moment, no one really know the true price.

And its the first significant one this year. Any way, we get to see how the market value Quadrant's existing businesses and potential valuation of our permits.

A good deal of interests will augur well for us. A bad one may not be.

Here is an example (note this was done when oil prices was in the low $30):


Stag oil field finally flogged in cut-price deal
http://www.copyright link/content/dam/images/g/n/h/o/q/m/image.related.afrArticleLead.620x350.gqfivu.png/1469669835894.jpg
Santos-backed Stag oil field has been sold to Toronto-listed Mitra. Bloomberg

• by
• Sarah Thompson
• Anthony Macdonald
• Joyce Moullakis

Santos and Quadrant Energy have had to accept a cut-price offer for their Stag oil field in Western Australia, selling the ageing offshore venture to little known Mitra Energy for one-fifth of the original price it had agreed last year.

In a deal that has flown under the radar in Australia, Toronto-listed Mitra will pay just $US10 million in cash for Stag, compared to the $US50 million that Malaysia's Sona Petroleum was originally intending to pay.

A lower price always looked likely after Stag field operator Quadrant and Santos had to drop the price for Sona from $US50 million to $US25 million after oil prices dropped late last year, and even that was knocked back by the would-be buyer's shareholders in late February, sending the vendors back to square one.

The sale has been a troublesome one for privately-owned Quadrant, the former Apache Australia business, and Santos, marred by controversy over the valuation of the field.

At one stage, a price north of $US100 million was being talked about, but others valued it as low as $US19 million, while the latest deal has been struck at just over half that.

Stag, producing about 3,750 barrels a day from 10 wells, has proven reserves of 10.1 million barrels and proven and probable reserves of 14.6 million, Mitra says.

The price equates to just US$1 a barrel on a 1P reserves basis, or US70c on 2P and US50c on 3P numbers. Note how cheap this was?!?

Mitra executive chairman Paul Blakely is lauding the acquisition as an important one that "puts Mitra on a path of transformation to becoming a leading upstream production operator in the Asia Pacific region."

As a new operator in Australia, Mitra still has to go through approvals with the National Offshore Petroleum Titles Administrator to be able to take over management of Stag, and is also awaiting Foreign Investment Review Board approval.

Read more: http://www.copyright link/street-ta...n-cutprice-deal-20160728-gqfivu#ixzz4fRCvV1BY
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