Sobeit this was a fast track farmout in the form of an option - an option is an agreement to buy in at certain price. Price has been agreed and clearly stated in RNS.
They could well be buying and holding in trust for ruling family
I've only managed to average down to 100p and I hold 1m - thinking about running for the hills as I can't afford a duster and an SP of 5p. I thought I might get an extra 10p back during drill but that now seems unlikley, and potential upside on discovery seems questionable at best.
This has to be the worst reaction by an SP to 2x farm-ins and the confirmation of commencement of drilling. I note PMO only added 100m in value after discovery. On a like for like basis if PVR come good that would only equate to 250m being added to PVR market cap subject to success – risk reward not great considering this equates to an SP increase of 2.5x on a 10/1 chance.
How do companies stop information leaking from those involved in the drill?
IG no longer allow spread betting on PVR - anyone use an alternate provider who does?