Must laugh in my sleeve reading pemanently repeated comparison between Serica and SDX. Serica deal was coerced deal for BP, why would anyone think that Egyptian deal should be the same and BP give 1 bill. assets with affection?
Tigris is indeed elated, overjoyed and ecstatic...
Can't believe the nonsense speculation that was being put forth on LSE Board over the past month. Didn't know much about the Serica deal but two things were certain to me:
- There is no free lunch. There was no way SDX was taking on 70,000 BOE/D of production without huge dilution or leverage. Even if no shares were issued (higly unlikely since it was billed as an RTO) the acquired assets would dwarf Morocco and any further SD discoveries and would make them immaterial. And payments out of production are just another form of debt.
- Serica got lucky as Brent has gone from $45 to 80 in the past year, I am not betting it's going to $140