GulfSlope Energy Inc (GSPE)

[smith199]

Gulfslope’s Tau Prospect 75% working interest partner Delek Group most certainly recognizes great value.

Delek’s potential Shelf offering is not to go below NIS 163mm (Israeli Shekels).

To put things in perspective, based off Gulfslope’s Tau-1 well budget of 44 million USD, I estimate Delek’s 75% working interest on the Tau-2 well insurance re-drill to 15,254 ft. MD to be around NIS 90mm Israeli Shekels. That is more than 56% of the NIS 163mm minimum amount accepted by Delek on their Shelf offering.

Also, Delek’s GSPE capital share purchase value was around NIS 41mm Israeli Shekels.

It looks like Chevron will be Delek’s new 40% partner in the N. Sea Leviathan assets now that they are purchasing Noble. Delek is the major stake holder in the Leviathan assets at 45%. The 45% interest falls under Delek’s 100% privately owned Golden Child, Ithaca Energy. By the way, Chevron sold (unloaded) their N. Sea assets to Delek last year for around net 1.7 billion USD. I wonder if Delek is interested in buying from Chevron some of that 40% at potentially a better price in 2020/2021? Ithaca Energy’s assets provide great cash flow for Delek.

I still see Gulfslope’s Tau Prospect having more than 2 working partners since the crisis, and the Tau-2 well insurance re-drill should supply value and goodwill to any partners. I could see a Tau-2 well Spud date sometime between then 4th Qtr 2020 and 1st Qtr 2021.

With all the asset “write downs” and impairments there could be deals to be had, they just have to be found.



Smith