Blackrock increasing holding today is a good sign. If someone wants this share they will have to pay a lot more than 250M. Pagent stating that a successful appraisal drill on Barryroe alone would mean a valuation of at least 30 to 40 times the present share price. Need to rollo over Melody financing and await for Rebound in Oil price which will be slow but sure. Providence as JR has pointed out are sitting on massive tax write offs. Also the agreement with Schlumberger is a really big development. Watch SP rise in the coming days and weeks !!!!!!!!!!!!!!!!!!!!!!!!!!!!
Shelf drilling failure in artic
It is hard TO See why Barryroe FO is so slow and difficult. Oil futures are 65 dollars a barrel for 2020. Barryroe present production cost is sub 30 dollars. So potential Farminee Just has to do appraisal drill and determine Future Oil flow. Lets say it is initially 30000 bpd. If You sell Oil futures at 65 dollars for 30000 bpd You can lock in a 35 dollar profit per barrel per day. If price of Oil rises Farminee can choose not to exercise any put options purchased. Also all development costs are recoverable against Oil sales. It is obvious that Oil demand Will continue to rise. Supply at 50-60 dollars a barrel Will very unlikely meet demand. Barryroe must be a gem. Still believe we Will Get a deal, perhaps before christmas !!
I would say that Goldman Sachs Have Been shorting futures Market probably in conjunction with and at the behest of Sama (Saudi sovereign wealth fund) and their Kuwaiti counterparts. Saudi and Kuwaiti funds selling futures To keep prices low ahead of October credit funding line appraisal for USA Frackers. Once credit cut to Frackers in October and in advance of December OPEC meeting expect to See Oil futures price rise as Saudi and Kuwaiti sovereign wealth funds un wind their risk free short trades as they control production i.e They are shorting their own production so can cover at no Cost and no risk. Obviously Goldman Sachs whilst forecast inf 20 dollars a barrel Will cover Its shorts in The coming weeks in a weak market by frightening others into selling On the Back of Its forecasts. Expect Saudi abd Kuwaiti Will Have explained to insiders That shorts Will be reversed post October. This Is what I Believe is happening. Expect Oil between 50-60 dollars a barrel By December so that Saudis can tell their OPEC buddies that their strategy has worked
Hello Mmmmm. We won't Have To wait long to see how things play put. Saudi Arabia will not go into OPEC meeting in December with oil in low 40s or below. They are shorting paper market and physically over producing to pressurize competition and curtail future oil investments in non-OPEC supply. Do not Believe Saudi and Its allies in OPEC are selling cheap oil for the Good of World peace and love. So once Frackers Run into trouble with loans this October I believe we will see oil price recover 50-60 dollars by december. That is my opinion. What Tor and his bedfellows do is another matter
Believe That things will change from October onwards. Banks will decide on credit lines to Frackers in October. This is based on the value of a barrel of oil. Obviously the lower the price of a barrel of oil the worse it will be for Frackers. Thus Saudi Arabia and Kuwait sovereign wealth funds are shorting oil futures deliberately and thus Keeping oil price artificially low. Once Frackers are delivered blow in October expect oil price to recover as Saudi and Kuwaiti Sovereign wealth funds cover their short positions in futures markets ahead of December OPEC meeting
Stock Market not reflecting correctly Chinese oil demand. Chinese are buying more oil thsn ever and Have just liberalised domestic refiners which means they are now able To source better quality International oil instead if lower quality domestic sources. China with a much bigger population than USA consumes approx 11m barrels of oil as opposed To 18m in USA. Than we Have India where demand is growing swiftly. Oil Price will rebound By end of year. Price manipulation To damage high cost producers under way at moment.