Of special interest to all of us shareholders,
By when will the removal of poison pill come into effect?
By when can JG Petrochem or anyone else buy more than 20%?
What are Goldman and JP Morgan planning to do?,
together they own > 10% of shares,
in my opinion either they will sell their shares right away for a quick & cheap profit
or they will try everything to get the most out of it, perhaps they will get into a bidding war with JGP..
HRT petroleo's Market Cap is ~US$140MM at the moment...
Final 1Q14 Cash was ~US$140MM (no debt)
with another US$24MM coming from Rosneft as soon as ANP approves the 6% of Solimoes Transaction.
Producing Polvo Field with NPV of ~US$100MM,
when we take into account the huge tax credits of HRT the value of Polvo should be much higher
and after drilling (with high Chance of Success, appraisal wells, proven reserves) we could see huge upside here..
Solimoes Gas Discoveries are huge with the highest onshore gas flowrates in all Brazil, Rosneft & HRT are working hard with Petrobras how to bring them into production, they are in negotiations with several companies who clearly have shown interest to this project, HRT will not need to spend any of their current cash, in Solimoes they own 49% of an acreage as big as Denmark (42,578 km²), by farming out 20% to 30% HRT should get > US$200MM, enough to finance the development of their > 3 Tcf Gas Reserves and to drill prospects for light oil, in trend with Petrobras' light oil discoveries...
Namibia Light Oil discovery (noncommercial) by HRT & Galp Energia in Walvis Basin and the Kudu Gas discovery and Proven Source Rocks and Porosity in Orange Basin attracts Major Oil companies to farm in to Blocks in Namibia offshore. This is the only possibility to get a share of the Billion Barrel potential, to farm in. HRT owns 10 Blocks and is by far the biggest agreage holder in Namibia offshore, a huge acreage ( > 50,000km²), even bigger than the Solimoeos acreage. HRT owns 80% to 95% of these 10 Blocks located in Walvis Basin and Orange Basin, again HRT will not need to spend any of their current cash in Namibia, by farming out 40% to 50% of all Blocks HRT should get > US$250MM and could finance (or get free carried) up to five offshore wells. Next planned well is in Orange Basin is "Meerkat", a Multi Billion Barrel potential prospect...
If we consider
the cash with no debt, the tax credits, the value of HRT's producing assets and Gas discoveries, the farm out value of HRT's percentage of acreage in Brazil and Namibia more than enough to finance huge Development and Exploration programs, the Multi Billion Barrel potential,
then we know,
This is a Billion Dollar Company with a US$140MM Market Cap!!
GLA
