Hi mate I think BRK would show a lot of interest. The project...

Hi mate

I think BRK would show a lot of interest. The project throws off US$ 10 million free cash PA ( declining) so potentially could be self funding in terms of paying back any purchase costs. They would increase 3p reserves by 12 MMBOE according to the teaser sheet, and add a 9 well drilling inventory across 2 HBP DSU's , both abutting BRK acreage which could be drilled post 2028.

But.. BRK would want a fire sale price, which is unlikely because ST have engaged PetroDivest to get top dollar. Even if they got a fire sale price then how to fund?

BRK low MC limits debt, and any debt they raise will be to accelerate Bruins drilling which will give more bang for their buck in terms of cashflow generation. It wouldn't be prudent hold back Bruins in favour of this asset, even it they could steal it. A highly dilutive equity raise will not be appropriate, given the ridiculous discount to value BRK trades at this time.


The fact it's being marketed suggests to me BRK have passed on it.

We shall see.