I've been thinking about the following factors:
1) SEA borrowings2) SEA tax they have rolled over on previous sales (the US allows a gain to be postponed if the funds are reinvested)
3) the current consolidations of land holdings we are seeing in the American shales
4) analyses of EBITDAX for next year - SEA guidance + @moremoneyplease + @cmonaussie
(once you two muppets play nicely together you both actually have some interesting points)
5) the new CFO Thomas L. Mitchell - check his linked in profile as he states his expertise as Oilers then M&A transactions
6) the difference in value between SEA EV and possible value of the land once proven up
7) Erik's history of dealing - both with acquistions and divestitures
8) Erik has changed the message of his presentations from portraying SEA as an O&G exploration company to an O&G producer
9) Euroz & Morgans Stock broking must of placed a LOT of stock with their clients + Morgans Corp finance team love deals
& I have to agree with MoreMoneyPlease that there would have to be a significant chance of a sale in the next 12 months.
My guess would be that they will bundle everything (bank debt + tax rollovers + land + production holes) into one corporate deal as a sale of the company to a larger producer. This would meet all of the points above.
What would be interesting is whether the geological work is still out in Erik's private company. From memory back a couple of years SEA used to pay his private company for access to the data which he had licensed personally. If this arrangement still exists then it would be a no brainer that he'd sell the whole kit, pinch a couple of the geologists that have been responsible for identifying the decent targets & then fire up for another go round the merry-go-round with SEA-V2 + a couple of million$ in his pocket.
Possible purchasers would be any larger producers that had contiguous or even nearby holdings and given the spray of leases SEA holds there would have to be a few of these.The main issue I see is - timing? Between June & next Aug I imagine would be the theoretic sweet spot but it depends on when cashed up suitors wanted to dance.
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