Market Reaction: Slightly negative on sentiment, given delays at Stella and low production guidance. On a NPV basis, the delay at Stella is offset by a likely US$10-24 mm reduction in the incentive payment to Petrofac. The acquisition of Vorlich is good news in our view, as it maximises the value of the Stella infrastructure. Assuming a US$10/bbl tariff would suggest an unrisked, undiscounted Cash Flow of US$40-50 mm to Ithaca. With 11.5 mboe/d hedged at US$60/boe in 2016, even with lower produc ....
12 Jan 2016
STELLA DELAY AND NEW ACQUISITION
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STELLA DELAY AND NEW ACQUISITION
Market Reaction: Slightly negative on sentiment, given delays at Stella and low production guidance. On a NPV basis, the delay at Stella is offset by a likely US$10-24 mm reduction in the incentive payment to Petrofac. The acquisition of Vorlich is good news in our view, as it maximises the value of the Stella infrastructure. Assuming a US$10/bbl tariff would suggest an unrisked, undiscounted Cash Flow of US$40-50 mm to Ithaca. With 11.5 mboe/d hedged at US$60/boe in 2016, even with lower produc ....