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Equinor woes...From ABG Sundial Collier in regards to Equinor:
Confirms the amount spent by Equinor on their Sands of Thrace Farm In - and their disappointment in the results obtained. It also confirms that they "own" those assets (otherwise how can they be written down?) and therefore they now have to come up with a disposal option for them. Valeura therefore owns its 50% of the Banarli deep and its 31.5% of the West Thrace deep. It does not get that 50% deep interest back "for free." Equinor is not under any "break fee" obligation. (To Valeura.) They will simply be negotiating with interested (or disinterested?) partners over what that interest might be worth. No doubt there is horse trading going on and a certain degree of "lawyering" as disposing of uneconomic resources is not always easy - at any cost - and holding on to them incurs some obligations and liabilities... VLE will be trying to press some advantage over untested intervals and Equinor will be telling VLE to get stuffed. Not much fun - and personally no interest to this casual observer of such things... Dreams over on Stockhouse of some sugar plum fairies in terms of a break fee paid by Equinor to Valeura are just that - pipe dreams. Dreams of Pinnacle buying out Valeura's interests at anything more than dirt cheap abandonment liability costs is also a pipe dream. All parties will probably just let the entire enterprise expire and revert to Turkish control again. (If indeed it has proven essentially worthless.) If Valeura wishes to go ahead and drill more deep wells - Equinor will simply go on penalty (if they retain ownership of their working interest) and VLE will have to pay 100% of any costs going forward in Banarli - 81.5% in West Thrace. (Unless Pinnacle too goes on penalty?) Really - no fun at all for anybody... GS |
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