But look at it this way. There's a huge difference between an exploration company and a producing oillie. GKP have humungous proven reserves and moving towards production. The shares are curently £220 based on reserves of 13.5 billion barrels. Whereas, the Falkland oilies have......nothing, zilch, nada. But their shares are trading at a premium.
Correct. Big difference between exploration and producer. Incorrect, as in the Falkland oilies have oil, loads of it - I think you just have to look closer.
p.s. GKP do not have reserves!
The company (Tethys) will need to raise funds and make a placement soon. I'd hang-on for a while. They have huge reserves of oil and gas, but it is in dangerous bandit country.
I've not had the time to look at TPL - was enjoying the sun too much. But yes, cash requirement is a big factor in appraising junior oil E&P companies.
Edit: to add, also producing in itself is not the end-factor - how much is the company being paid for each barrel? For example with Genel and the tidbit that GKP is producing - what is the payment?
Edited by Lagarde's Drift, 23 July 2012 - 04:23 PM.