Cujo said recently KAR has never sold a barrel of oil. Correct!
But KAR did sell $600,000,000 USD of Gas reserves to Origin without paying Lease rentals, Production royalties, or Operating Expenses of any kind at the top of the market. Much better than producing it over 10 years at varying prices and paying all costs to produce. A stroke of genius. Then they buy back 35% of 5 Brazil leases from Pacific Rubiales at the bottom of the oil price. Inspired!
Woodside just paid $2.5 Billion for a slice of some NW Gas filed. So if Origin ever decides to produce the Poseidon reserves they bought from KAR,(when Australia is doubling energy prices and using Coal Seam Gas to plug part of the gap) then KAR will get the extra $200 Million USD payment due on field development.
Now they are about to sell 35% to 50% of the three Brazilian discoveries at the right time ("Brent Crude trading today at $69.15 USD on middle east tensions"), after getting the Brazilian authorities to reduce the non-discovery 2 exploration wells + seismic lease commitments (which were KAR 100% was $359 million) that were about 50% of ALL worldwide licence commitments. They will still drill two horizontal wells and a gas injector to get Echinda into production.
And it trades at less than cash value? Please explain.
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