Post by
dbeaude on Nov 20, 2013 10:37am
The company put itself in a tight spot unessessarily...
For a stock just coming out of penny stock status operating in a country like Nigeria to start paying a $70 million per year dividend is IMO not a very wise move and I said so when they did it.
They would not have had a need for the LOC and used a good portion of if it as a result of being in a distributable cash flow deficit to finance a dividend payment. I am sure things will turn out fine but they could have begun with half that dividend for a junior cap Nigerian play. Speaks to the foresight of management.
I agree that is great news as the field is being further delineated and showing well flow rates that other similar size companies would die for. Should help with reserves. Also the pipeline will eventually be built and two great things will likely occur for the company....a very size immediate boost in production and hopefully a large reduction in pipleline losses. These two items alone will have the stock at $2 plus again. It is just the wait.....I know!
Comment by
ShatnersRug on Nov 20, 2013 11:08am
Take a peek as to how many shares Mr. Cherwayko has. 0.05/share is working out pretty well for him and other insiders, wouldn't you say? To them, the divvy is a winner.