Disappointing announcement
I still remember once monark claimed
"Perry Ranch. It is industry norm that 2P reserves are generally worth around $15 - $20 per barrell. I verified this with experts some time ago. Based on 1.2 milllion barrels, the reserve is worth between $18m and $24 so $20m is accurate in my view. I dont recall suggesting that TTE should farmout 50% because it is worth $20m though do agree that TTE should farmout to reduce the risk of a well missing the sweet spot. What value that farmout has i dont know - maybe a couple million, maybe $5m. 1P Reserve would assist in maximising value though this can't occur until you have a producing well. "
http://hotcopper.com.au/threads/ann...2225098/page-12?post_id=13245332#.U_FcEJ6SySo
At the time of pre-consolidation, perry ranch was seen as one of our key assets after Drover-1.
Although I had always been cynical regarding the aforementioned evaluation of perry, I didn't think it was going to be farmed out at the terms mentioned in the announcement.
Not blaming anyone as the decision to hold was mine but just posting for the sake of discussion.
Forrestfield, Bonehead in the past has posted charts of the performance of small O&G companies which explore shale assets in Australia/ conventional projects in the U.S. and TTE was THE underperformer in terms of % SP reduction over the period of 12 months. Im sure that has not changed. As you might know, whenever a specific spec sector gets some attention, the underperformer generally gets the least attention and love imo
“Titan is delighted to be working with such an experienced team for the drilling of the Perry-1 well.
Mueller Exploration Inc has proved a highly competent Operator during the drilling of Holcomb 1-H,
coming in 29% under budget." -> from what I can get from this line, TTE is not experienced/competent enough to drill this well.'
I understand the important bit of that paragraph is "we are de-risking our financial exposure to the project" but the terms of this farm-out was just not in line with my expectation and I guess im a bit pissed at how things went.
At the time briefly after pre-consol, the expectations were that perry ranch to be farmed out to obtain funds for Drover-1 as opposed to convertible notes/CR but we all know how that went.
Sentient is still none but will dump this dog on any spike. Will be happy with 2c.
P.S. had a look at TTEO and there are virtually no buyers lol. guess my options are pretty much worthless as they should be with how things are going
