Husky and CNOOC have agreed to a new fixed price at Liwan (~10% lower than previous), and are finalizing terms for a smaller Liuhua 29-1 development. The price concession is significantly less than many feared. Clarity on the price, together with the positive news that Liuhua 29-1 is about to move forward, should be a positive for the stock on Tuesday. Liwan production is back to normal, and Husky estimates to receive ~US$100 mm in back payments from CNOOC. We maintain our Outperform ranking
03 Aug 2016
New Liwan Agreement with CNOOC
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New Liwan Agreement with CNOOC
- Published:
03 Aug 2016 -
Author:
Michael P. Dunn -
Pages:
5
Husky and CNOOC have agreed to a new fixed price at Liwan (~10% lower than previous), and are finalizing terms for a smaller Liuhua 29-1 development. The price concession is significantly less than many feared. Clarity on the price, together with the positive news that Liuhua 29-1 is about to move forward, should be a positive for the stock on Tuesday. Liwan production is back to normal, and Husky estimates to receive ~US$100 mm in back payments from CNOOC. We maintain our Outperform ranking