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Chapter 570 Bankruptcy
According to the contract, Keith finally assumed some unlimited liability in his personal capacity. Originally, according to the contract, Forest was paid a premium, but now...it is no longer a premium, which means that the probability of him losing money has increased.
Keith's mood can be explained by Pidgeot. He has the idea of killing the exploration company with a gun.
"If they exercise their rights, how much will I lose at this time?" Keith comforted himself silently, but no matter how he thought about it, there was a fear in his heart. If he lost...
It is stipulated that the three investment banks' exercise of rights on Oasis Securities and Oasis Securities' exercise of rights on Forest must occur at the same time. In other words, only if the other three investment banks exercise rights on Oasis Securities, Oasis Securities can exercise rights on Forest.
However, the former was exercised at a price of 165 million for 15% of the shares. It has already made a profit, but it is not enough to make Oasis Securities insolvent, so Keith does not have to bear the responsibility.
However, now Keith has the idea of letting these three vampires exercise their power quickly, and he has an ominous premonition in his heart.
It offended a rich man like Lei Hao to death. If he ran out of money and even had a lot of debt... Keith felt cold sweat break out on his back.
"The Chinese will not let me go! He has spent so much effort to force me into the game. If I lose...how can he let me go!" Keith's face was pale, but in his heart he had the feeling of clinging to the only one. Life-saving thought: "Don't be afraid, I still have a chance of winning. As long as the exploration results are not good, and as long as I don't lose everything, I still have room for maneuver."
Inside Texas Union Oil, Sereno was on the phone to communicate with the company, but his words were full of excitement: "Yes, I will ensure that Forest's rights and interests are not infringed, and I will communicate well with the insurance company."
"Don't worry, Wall Street and oil companies have ready-made contracts, and they can't deceive me."
"I will exercise my right to read the information that is available to me."
Sereno felt refreshed. Yesterday, he was still taken as a victim by Texas United Oil, but today he suddenly made a comeback. It was strange that he was in a bad mood.
Moreover, Sereno is a person from Forest. He has also experienced several securities market operations by Lei Hao, and his confidence in this investment has begun to return.
"The boss has never failed. Maybe it will be the same this time. We may not need anything else." Sereno thought to himself that he still has a task, which is to try to contact the top management of Texas United Petroleum to prevent things from changing. There is an opportunity to intervene.
After hanging up the phone, when Sereno showed up at the survey site again, he was greeted with friendly ridicule.
"Our lucky Sereno is here." The personnel of the exploration company looked a little embarrassed, but after seeing Sereno, they all smiled.
In the oil exploration industry, exploration companies can get some extra income if they find more oil, so they attach great importance to luck.
Although our own mistakes prevented us from getting the rewards we deserved for the discovery of the new oil layer, everyone's attitude changed slightly when faced with Sereno, who had a lucky aura.
"Sean, don't interrupt your work, right?" Sereno walked to the person in charge of the oil well exploration naturally, smiled and handed over the cigarette, but did not light it, because no open flames were allowed here.
Surveyors habitually put cigarettes under their noses, sniff them, then clip them to their ears or put them in their pockets, then return their attention to their work.
"The equipment has been set up early, and part of the work has been carried out under the supervision of insurance companies and banks. The drilling will be completed soon. After logging, we will know the quality of the oil and gas stored below, Sereno, That's the most exciting time." Sean, wearing a safety helmet, lightly tapped Sereno's shoulder with his fist and said with a smile, "I hope you can bring me good luck."
"How long will it take?" Sereno asked nervously.
"It will be fine tomorrow. It is no better than before." Sean said with a wry smile: "The increase in unemployment is also due to the advancement of mechanical equipment."
"I hope I can get good news." Sereno wiped the sweat from his face.
"To be honest, I'm not very optimistic. This is probably just a grade IV oil well, which means it's less than 0.25, and the income accounts for less than 1/4 of the investment." Sean said some professional terms.
Levels I to IV are divided into 4 levels with every 0.25 as the dividing line. Before the 20th century, these four levels were directly used to calculate oil reserves. Later, they were more refined and everyone subdivided the same four levels again. As Mining benefits.
What kind of oil is extracted, how much associated gas is there, reserves, mining difficulty and other factors are combined to get a benefit and cost ratio. Projects that require financing to share risks, all fools know that it is likely to be Level IV, like that. How can a company with no connections like Forest get a project with oil on the ground?
Sereno also recognized this.
"What is worth celebrating is that the increase in reserves will of course improve the grade of the same oil well. You may be able to get a Grade III or even Grade II oil well." Sean joked: "People on Wall Street do make money."
"To work on Wall Street, you first have to work with the right people. Fortunately, Forest is a good company." Sereno nodded.
"Let's not talk about it anymore." Sean waved his hands with an ugly look on his face. If the potential profits were not shared by Forest, he who was in charge of exploration should be in a happy state with Texas United Petroleum.
Now... I can only talk about the damn financial sector.
Thinking of this, Sean and the others quickly regained their sense of responsibility for Sereno. The latter's good luck temporarily became the former's bad luck, which was really bad news.
"I hope there will be good results." Everyone thought silently in their hearts.
Everything went smoothly, and the well logging work started the next day. When the first set of data appeared on the laptop screen, the people in the exploration company were stunned.
"This is……"
"It may be Level III. There is probably a Level III oil field down here!"
"Where's the ROP? Depth, lithology... quickly, record the data."
Well logging is a job that takes time, but in the eyes of professional people, the preliminary data can immediately tell some clues, whether it is a good well and the probability of it being a good well.
If you put it in the securities market, it means variables are generated, good news appears, and it goes up!
The people of Texas Union Oil Company quickly received the message. While they were excited, they also felt a dull pain in their hearts.
"The bastards on Wall Street get these profits for free."
This group of people didn't even think about it. They were machines installed with debt. Without Lei Hao's 200 million, how dare they start work and take a gamble? What a joke.
When the preliminary test results came out, everyone at the Texas Union Oil Company was dumbfounded. This was really a Class III oil field, which was about 0.15 higher than the originally expected figure of 0.2-0.25. In other words, 0.35-0.4?
The oil field was originally worth 600 million, but now it should be valued at almost 1 billion. Counting the entire company, the number is 1.4 billion? Lei Hao has 20% of the shares, which is 280 million.
Oasis Securities bears the risk exposure of 15% of the stock options, and the 15% of the shares are now worth 210 million, minus the exercise price of 165 million, which is US$45 million.
After losing more than 50 million in the forward agreement last time, can Oasis Securities lose 45 million? Of course not, which means that Keith has unlimited liability. As long as the other three investment banks exercise their rights, he will definitely go bankrupt!
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