B.We will lose less money as we won't have to pay for 33%.If we...

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Davy Boy

16,607 Posts.

3981

11/12/21

20:28

Post #: 58235073
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Originally posted by huaneng: ↑

" Under what metric do you think this is a good deal? "IF its a duster.a) if Cluff farms in and the well next year is at duster, the share price of Ivz will go down to almost zero cents

b) if Cluff does not farm in and the well next year is a duster the share price of Ivz will go down to almost zero cents as well.

So if it is a duster it will always end up bad, and it will make no big difference if you have a good, or a bad or no farm in deal. Only if you have a very good farm in deal (which we do not have at the moment) like we are carried for much more than some percentage of drilling costs, like we are carried for 8 more wells and a 3D seismik for example, than it can become a difference and a deal IMHO.

c) if (global, average 1:10 chance as for any other exploration well) we hit an elephant gas field next year, the share price of Ivz will go up. But with the Cluff farm in, the piece of the multi billion cake will be much smaller, compared to the piece we will get, if we go sole risk.

d) But if we go sole risk we will have a much bigger piece of cake and we are in a much better situation to get a very good deal for the farm out for the development, when many hundreds of $ , when the big money is needed.

We are here in a perfect high risk, high reward situation and we should grab this unique chance without the non binding farm in offer from Cluff.

There are enough share holders who would buy more new shares to finance the small money for drilling the first well.

I think, that if this Cluff farm in deal becomes binding, a big piece of our no duster future Ivz cake would be stolen from us.

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B.
We will lose less money as we won't have to pay for 33%.

If we have a very good farm in, I'd be interested in what you consider good and you simply can't be serious about 8 wells and 3d seismic, and it's a duster same result zero cents.

Scott has more to lose than any of us.
If you have no trust in management then the market is open Monday.

IVZ Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
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