RE:RE:RE:RE:RE:I Looked At Lundin Group Of Companiesfirstworld wrote: papaloapan wrote:
Not sure I see it the same way.
The historic opportuity to grab assets in Namibia was 10+ years ago, and AOI did just that, both directly and indirectly (EOG, Impact, Africa Energy). Today is the time to start harvesting those assets.
AFE was a major discovery, and has been mired in politics to get production and offtake. But it will come, or they will produce LNG offshore.
Venus was a major discovery, and planing is underway for production. You can argue about sell versus stay, or the cost of the carry, but it is a major discovery.
Plus they hold vua Eco a stake in some highly prospective licenses in Walvis Bay and a large stake c- driect and indirect - two recently farmed down and highly prospective licenses in South Africa,
3b/4b
And lets not forget that while they wrote down their interest in Kenya, this was thier remaining interest. They sold half of their interest which allowed them to buy Nigeria.
Am I happy with the share price, no, but neither have they been asleep at the switch.
Asleep at the wheel re Prime infill drilling production replacement oversight...this should have started a year ago. Production down 20% vs 2 years ago.
1) They're not the operator.
2) The big boys are the operators and they're smart. Because they're smart, they ask themselves: Why invest capex, when the licence will end in 1 year ?