I think you can not worry about Chevron cost, that is done and dusted.
SEH sunk cost are huge and yet we still have no idea if the current wells can create a NPV 10% positive return.
If you stand back, ignore the hype (brokers crazy valuations) and think is this company for real?
Has it shown commercial gas flow from it's wells?
NO in my view.
Then what is the value of SEH?
My honest view is that SEH might just with the new funds be able to deliver a positive NPV 10% project, but since the start of the first pilot production how many new wells has SEH drilled and tested, what are the new well flow rates, what have they learn from all these old wells they have drilled or have they even drilled any new wells?
I still unfortunately see no reason to buy except if SEH get a get of jail free card by way of a silly Chinese T/o offer.
SEH Price at posting:
8.7¢ Sentiment: None Disclosure: Not Held
