JBR - looks like a small offshore field = expensive to develop. JBR had ~$5MM in cash as of Mar 31, so significantly underfunded to develop this field.
Mira estimated they needed $60MM to drill a development well on their TSB field, install a platform and an export line. These JBR guys say they expect to tie-back to a near-by field. I presume they need to install a platform and perhaps drill a development well as well. If so, they need $60MM plus working capital. Maybe a $75MM equity raise - for a play with a current $15MM MC (and over valued at that).
Finding cash in this market to develop the field will be extremely difficult. Equity will result in ruinous dilution.
I am dubious about this field since it has been sitting around almost a decade without any work being done. Marginal Fields have seen a lot of tire kickers since they were awarded in 2003 due to the superior fiscal terms. As such, I suspect the economics of such a small offshore field are tenuous.
Wouldn't touch this play until a lot more details are known, funding is in hand and drilling imminent.
Suggesting this could be another MMT is difficult to believe. The economics of offshore development are much less attractive than onshore, absent a very big discovery (which is not going to happen).
AI
