I don’t get the strategy of the new management and would appreciate if anyone can help me understand….
We just issued a ton of new shares to pay for a Workover and tank upgrades for an operation that TEG shortly will only own about 40% of and no longer be the operator? Why isn’t PGY contributing over half? What value did TEG holders get out of the ownership “realignment” that gave away over half the cash generating asset? At a time when oil prices at record highs? What value - the deferral of abandonment which could be achieved many different ways without giving away an asset?
This strategy makes absolutely no sense. TEG need to explain some basic fundamentals of their current direction; so many questions but 2 that are blatantly glaring; 1) Why would injection of CO2 offshore make ANY sense vs. Doing it for less cost onshore - and where the hell is this imaginary CO2 coming from anyway? 2) How on earth does restoring storage at Arrowsmith lead to a viable and efficient “export pathway” it sounds like an expensive and wasteful exercise of kicking the can down the road…… ohh and I thought of a Third, major one: how on earth does this deal with PGY make any sense whatsoever - what the hell value did TEG shareholders obtain in the deal?
TEG Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
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