Tuesday, 15 April 2014

Glencore Share Price: Company drills on Wall Street

Glencore acquires Caracal Energy for $1.35bn

Glencore has agreed to acquire Caracal Energy for £5.50/sh – a 61% premium to the undisturbed share price. This equates to an enterprise value of ~$1.35bn. Caracal is a UK listed independent E&P focussed on Chad. It has 2P (entitlement) reserves of 64Mmbbl plus additional 2C resources of 2.1Mmbbl. The price paid equates to ~$21/bbl (2P). Reserve auditor McDaniel valued Caracal’s 2P reserves at $1.72bn as at 31/12/13 (NPV10), implying a reasonable price for both parties.

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