I can't recommend to buy or sell GP* (or any other stock), but I...

I can't recommend to buy or sell GP* (or any other stock), but I like. But quickly add, we are here about OEL and shouldn't chat others here. More than happy to chat over there about it. Since getting out of OEL, I have had a unreal amount of luck on 3 exceptional runners, hence my signature change.

OEL:
Finally a good counter point. I truly have been waiting for someone to identify this clearly, not just say borrow money.

Clearly this is more speculative and opinion than fact based like my previous posts, so fully open to correction/actualization on this.

Agree that they could raise some money. (might be a combo?). 10-12% would be inline with similar loans. It might push to 15% but has to be, whatever it is.

But unfortunately, you need to look at the P reserves states for this...it is not the high end you can borrow against, its the low end of the spectrum, then account that back to equity on that total. Galoc had a lot more low P reserves to draw on than SM71 ? from memory.

Compounding this issue is also the price of Oil and it's price volatility. Some will be nervous about this. Galocs was great, but it was a different time and oil was a different price.

There is less profit now, due to the production costs going up with the new platform design and being 24/7 manned.

Then with the initial production rates being low (1/2 this just stops the Admin burn rate), is it enough profit to repay such an undertaking in a timely manner acceptable to the lender or could this lead to a very long term debt?
Until they can get at least 3 further wells connected, which seems to be the plan but takes time (1-2 years +) and more money. The same money, can't be used everywhere

Other commitments will also be taken into account and the ability to service any loans. Unless its secured I guess.


Funny thing is Kito could have been drilled by now, last year and if successful, they could have sold the in ground asset. (But delays in Ottos other project weren't known then).

Please your thoughts Cara?