Cujo
At $25 a barrel Brent oil price, you may have had a good point. At $65 I would beg to differ. Peteobras is reporting production costs of $8 per barrel from one of it's larger fields.
Resource vs Reserves can be a fine distinction that is changed solely by farming out to a well funded partner improving the liklihood of economic development. I experienced this situation with my 12 years at InterOil Corp (IOC NYSE) which booked a 1.0 billion boe 6.2 Trillion cu ft of gas) resources in PNG for years and not reserves and then sold the company to Exxon for $2.75 billion USD in 2016. Many analysts said IOC was worthless because it had no reserves. It was sold for $50 USD per share. InterOil had also farmed out 35% to Pacific Rubiales in PNG and the largest shareholder of PRE was the main funder of IOC. I believe PRE went broke because their assets in Columbia were nationalized. So I am aware of the PRE buy back.
PRE spent a considerable sum, $200 million from memory, funding 35% of KAR's Discoveries. The fact that KAR bought that back for a fraction of the cost is not indicative of the value of the oil but the fact that it was a great deal for KAR and PRE was a distressed seller.
Whenever you have an explorartion company that can drill 3 winners out of 6, it is a keeper. The average success rate on exploration wells is 10% not 50%.
Buy low when everyone is depressed and volumes are negligible. Sell when it quintuples.
- Forums
- ASX - By Stock
- KAR Technical analysis
Cujo At $25 a barrel Brent oil price, you may have had a good...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add KAR (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.74 |
Change
0.000(0.00%) |
Mkt cap ! $1.392B |
Open | High | Low | Value | Volume |
$1.76 | $1.78 | $1.73 | $9.077M | 5.198M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 15017 | $1.74 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.74 | 1005 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 13149 | 1.800 |
2 | 17000 | 1.770 |
3 | 11787 | 1.740 |
3 | 8905 | 1.735 |
5 | 27562 | 1.730 |
Price($) | Vol. | No. |
---|---|---|
1.650 | 342 | 1 |
1.685 | 262 | 1 |
1.720 | 61 | 1 |
1.730 | 350 | 1 |
1.745 | 312 | 1 |
Last trade - 16.10pm 08/08/2024 (20 minute delay) ? |
Featured News
KAR (ASX) Chart |