VERY WELL SAID..
I also agree in most instances it works for you to be a small cap with a decent percentage in a huge find than otherwise.....and at other times it can also work against you as you have to give a large percentage of your company's ownership to get the 5 billion dollar investment in place to pump out those profits everyone keeps tallying up.
the main reason i posted the anadarko find is for one that it is a significant discovery similar to the same situation/business fecof is in........and more importantly i paid attention to their phrasing/wording....recoverable.....vs.... gas in place.....did anyone see how much the two vary between eachother.....almost as much as 50%..........people are doing math on fecof with gas in place which is assumed but probably correct.......and furthermore Assumed that it is recoverable at all.
Fep made the anouncement many months ago that they were willing to do just that and get a smaller piece of the pie. That having it get done was better than a big percentage of zero.......the question remains just how small are they willing to become to get this done?? will they be left with just 10% of sc70 to get this done?JUST A GUESTIMATE......Nobody knows for sure......but whatever it is it comes with an expense of 5 billion off the bat...........handing over somewhere around 50% of the revenues to the philipine govt as well ..........and then paying taxes too...
and if so then fecof will only have 2.5% of sc72........so if sc72 gets considered being worth lets say 20 bil.......then fep will be 2 bil.......and fecof will be 500 mil.....which is a huge jump from where it is now.............but this is very best case scenario in my book......as long as fep gets a bil market cap we'll be very happy......like fecof going to 30 cents
if sc72 goes bust but its only on feps books that they got the 80 mil loan with no financial responsibility/involvement from fecof..........then its possible that fecof could still barely survive the blow since its a holding company with other equity.....but fep will go under in that debt. glta
Lastly...... if there are huge finds like anadarkos and it costs less than 5 bil to invest there instead........then fecof will have a hard time finding investors quickly......which could explain why they didnt even have an offer, even before the chinese ramming incident.
you make a STRONG point about natural gas/liquified gas going for more in that region.......i just hope that the accountants find justification to give the green light for full scale production..... if they think we can only "recover" 10 bil worth,,,,,,,i dont see them investing 5 bil............especially when the govt. will get half and then taxes too. I also know that the govt. wont charge taxes until they recoup their investment<5 bil>,,,,,,,,,,,but theres so many variables that to list only half of them and do the math, then you will come up with the wrong equation. Good luck to all
