thoughts on gpc / galoc, page-8

p1000

Firstly i have just realised I masde a mistake on monies contributed to debt. I took 100% of 600,000 barrels. It should be 58% to allow for GPC's share of Galoc. Also having re-read the quarterly, the no of barrels produced is shown at 830,000. Assuming all sold that would give US11-13 mill of the net debt to financiers. That would give net debt of $32-34 mil.

If Otto's share is just under US$10 that would eqaute to about US$32 mil in total to financiers. That would take about 6 months to pay off at 14,000 barrels a day and US$40 a barrel.

The debt to Vitol and Otto doesn't really concern me (33 and 15 mil respectively if I understand you correctly). What concerns me is that the financiers are paid off and money is forthcoming from GPC to Otto. It does matter whether it is divies or return of debt. I guess that just my way of looking at it, an asset value or actual cash in the bank.

If Galoc was worth US150 mil with a proven record, then the actual cash to Otto would be 150*32% less 10 owed to banks. That would be $38 mil that they don't currently have in their bank account. Quite frankly I would take that right now.

Cheers