I made some enquiries earlier this week on the topic of the ongoing legal action vs Woodside concerning the premature abandonment of the Kenya drilling campaign after the Pomboo well failed.
It seems to me that there is quite a good chance of GBP making a recovery from that action. Given that the well costs were supposed to be in the order of $40mn per well (which Woodside saved by not drilling), if seems to me that GBP might recover in the region of USD8-10mn....so maybe worth 6-7 cents a share, albeit unlikely to be settled this year (unless Woodie ante up in a rising oil price environment)?
Add that on to the NAV AFTER paying for the Iti well....c AUD15mn cash - and other assets - and it seems to me that the current market price has the Uganda well more or less in for free!
Remarkable, really.......especially when there have been two takeover approaches for larger companies made in the last two days: http://www.investegate.co.uk/Article.aspx?id=200906041604394051T http://www.investegate.co.uk/Article.aspx?id=200906031407523029T ....the latter being for Tullow's partner in Uganda!
ee
GBP Price at posting:
19.0¢ Sentiment: ST Buy Disclosure: Held
