OTCPK:LNREF - Post by User
Comment by
jerrybeon Jan 25, 2015 7:47am
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Post# 23360523
RE:Nice gain in Aussie last night- Up 13.5%
RE:Nice gain in Aussie last night- Up 13.5% The operational update was very positive in the context of the ongoing slump in oil prices.
The overall bearish oil market is probably going to continue for a while. It would be interesting to see how Russian E&P firms fare at these low prices and whether they will also cut back production.
At this point, the investment thesis hinges upon the recovery in oil prices and how quickly/slowly it might occur.
Positioning new money of quality firms such as LoneStar is the way to go about it but if the crisis deepens, small firms like Lonestar will suffer and plunge further. The timing of this is quite uncertain. Some say that despite the massive cut backs in CAPEX, shale oil production will not drop by much given the improved drilling completion techniques and focus on the most prolific wells...still lots of uncertainty out there. GLTA!