Oz, I would be surprised if any portion of NDO’s Galoc equity featured in a deal – it is fully derisked and its revenues are the lifeblood of the company. It is to be protected at almost any cost.
WLA is a very different matter – all unrealised potential and not without risk. With an FID looming, funding is very topical. While I don’t doubt their ability to find the funds, it is an even bigger punt for RMA and Pitkin – especially with them carrying the minor partners. I could imagine a situation where BCP took a direct stake with say 5% from NDO, and 10% from each of Pitkin and RMA. If anything like this is being discussed there will be no sign of it until it is a done deal – google isn’t sniffing out anything at present. But other WLA deals could be on the table eg debt funding secured against reserves and an offtake deal.
SC54A is the intriguing one. NDO have had their failed deal with Colossal at 3m USD and before that with Viking. With Yakal, Tindalo, and 1x1, I’m guessing that BCP would view this as potential future barrels through their refinery. However, I’m guessing that the lack of upstream experience would mean that DOE would struggle to sanction them taking out the operator of the SC. It might look a little different if they were to take out the interests of one or two minor partners but I don’t see KIK in TH so I will guess that this is not under discussion at present.
Perhaps SC14A, SC14B is back on the table but if it was only worth 3mUSD bundled up with SC54A, then why bother selling, and it would be almost immaterial in regards to needing a TH/suspension.
I'm picking the deal is on something WLA related.
NDO Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
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