hi celtic & se 1234 im pretty sure you guys have nailed it &...

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mir911

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09/08/23

00:49

Post #: 69234395
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Originally posted by celtickiwi: ↑

Tui,

"...If STX/TPD can produce from Walyering, then TPD has an annual FCF of about $30 million..."

This is literally the $30MM assumption and Question. Will TPD actually have this full amount of FCF and by when??
I was interpeting the STX DD comments as that they DID NOT think, through taking over TPD, that they would get their hands on this FREE CF, because TPD has signed/locked in commitments that will eat the cash.

Hence why STX pulled the pin. Not worth buying TPD (or at least a poison pill thats difficult to swallow/needs more negotiations), if you then have to pay for a bunch of other outgoings for 12 months, already committed to by TPD management.

Speculating they have fully committed for the 3 well 2024 costs to L7 AND EP437 - that eats your $30MM pretty quickly.
Drill slots hard to come by unless you put your goolies on the line to lock in some scarce slots.

Then maybe it boils down to how you account for assets in an App5b cash flow report - short or long term...................both Legit. Not suggesting otherwise.

End result - STX can't deploy the FCF for its own developments or activate any borrowings.

Not trying to stir it up here. Genuinely trying to get more insights and info too.

I guess time will tell.

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hi celtic & se 1234
im pretty sure you guys have nailed it & remember you need to pay for long lead items, so that wont be cheap on 3 wells
Justadabble, when you next email Colby you should get him to walk you through this process.
i know i said i would give it a rest but reading all the crap from some of the TPD crew is too much

STX Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
29 Upvote

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