Re: some points
Even as recently as the 12 March conference they were still talking about "reducing" equity in Romania, acquiring another producing asset to utilize the tax credits and restructuring the debt by selling part of Breagh. Now barely 2 weeks later, the plug's been pulled and some combination of the "Big 5" have given up entirely. Seems Jake wasn't any better qualified to create value than prior managers. The Black Sea was full of promise but I don't think the government ever wanted Sterling to succeed there and gas in the ground in Europe has about as much intrinsic value as cabbage in the desert. I really thought (and was told) that the "mind boggling" prospects and gas already discovered was merely waiting for the 3-D for a major to finally sign on. Was pure bull$hit/fantasy. Likely the banks who were considering a longer term amortization (or RBL) saw the reserve report weeks ago and realized they couldn't do any better on terms than the bonds. So now this becomes another case of common stock with marginal value being jettisoned when values are at their worst. Reality is all the hype about quality of assets was never legitimized. The assets (aka super models) really weren't all that sexy because of where they were physically located. Cladhan is a long disappointment (must be a real hickey for TAQA), French shale, Dutch oil prospects in a gassy basin, Breagh 30% over budget and endlessly late. I thought the Black Sea might bale it all out because it had real resource value. But selling it outright now? A merger a year ago into stronger hands could still have preserved some real value. Faroe would have likely been interested in the whole package. Breagh does offer some pricing diversification from a mostly Brent crude bias. But I don't think these guys are able to negotiate anything other than a total give away in today's junior market. Adios...