TYK's Concession Agreement
cdnx.ca
"On June 1,1998 the Group (Contractor) was awarded a Concession Agreement for Petroleum
Exploration and Exploitation ("CAPEE") (pre-effective date of December 28,1997) with the Arab
Republic of Egypt and the Egyptian General Petroleum Corporation ("EGPC"). The Contractor is
committed to spend US$13,500,000, within eight years. For the initial exploration period of 3 years,
the commitment is to spend US$5,000,000. According to the terms of the CAPEE , the Group has
provided a letter of guarantee to EGPC in the amount of US$5,000,000. As eligible expenditures are
incurred and approved, funds are released from the letter of guarantee security deposit amount to the
Contractor in accordance with the terms of the CAPEE.
(ii)Effective April 27, 1998 the Group farmed out 20% of its interest in the Egyptian Concession with
Drucker Petroleum Inc. ("Drucker") and 30% to GHP Exploration (West Gharib) Ltd. ("GHP").
Under the terms of the farm-out agreement, as amended on March 17, 1999, the Group will be fully
carried by Drucker and GHP for the cost of drilling and completing wells, on a cumulative basis up to
US$1,250,000. Thereafter, Drucker and GHP will bear in aggregate 50% of all other costs and
expenses associated with the concession. The farm-out agreement was approved by the Egyptian
Government on March 17, 1999."
Now, before calling IR and asking if there are any additional percentages going back to the Egyptians, let's do some math on a 'best case' scenario on TYK. Any additional percentages would vary this model.
TYK is based off an est. $4.50 discount to Brent pricing
Brent (est price) $27.00USD - $4.50USD = $22.50USD
TYK has 50% Working Interest
$22.50USD x 50% = $11.25USD
$11.25USD x 1.49 (est. rate) = $16.76CDN
$16.76CDN x 2000BOPD (last press release) = $33,520.00
$33,520.00 x 365 = $12,234,800
$12,234,800 / 18,937,183 (shares) = $.65/share cash flow
$.65 x 6 (average multiple) = $3.90 cash flow evaluation.
Current Price $1.70
TYK is looking pretty good! $1.70 x 129.4% = $3.90
A 129.4% difference btw current share price and c/f per share. TYK also has some additional Hana wells coming on stream. Remember, this is a best case scenario based on their current production from their last PR (wish these guys would put up a website!)
For the period ending nine months (February 29, 2000), TYK had a net loss of $0.02/share.
cdnx.ca
Now, how does Scimitar stack against their neighbor in Egypt?
Today's share price $0.50
Scmitar's c/f per share $2.52
$0.50 x 404% = $2.52
Scimitar for the first quarter had a positive $0.03/share.
scimitar.ab.ca
Let's see, a 404% difference btw current share price and c/f per share. Positive net earnings, no debt and Thermal program about to begin on proven reserves of 545 million barrels (Ryder Scott). Downside anyone? |
