Post by
kcac1 on Jan 23, 2023 9:21am
One and Done on a duster?
"Any future drilling is contingent on positive results at Wei-1 and the Joint Venture has no further drilling obligations beyond the Wei-1 well."
This stood out to me in the press release.
I bet that OYL shares move much higher %-wise than FEC shares on drill news, even with FEC controlling approx 92% of the concession between owning about 78% of OYL's shares and the 68% of the concession.
If the well is a gusher, both should do well, if the well is a duster, OYL would seem pretty well F'd and I would think drop as much as 80% or more They have no money and no way of making money and FEC controls everything. There seems such little value and disconnet given FEC's very strong positon on this well and why most all of the longs felel the stock is stongly undervalued. If a duster, FEC shares may only drop 20%. And for sure the cash flow from Colombia and increasing from Equador plus their midstream investments in the pipelines and the port will keep FEC a viable company that will have to decide what to do with OYL and or the concession.
I own a fair number of OYL shares thinking I would hold until the end but the last two wells drilled by this rig have not gone well.
Sporty and others what are your thoughts on what happens next to near term share price and what happens if Wei is a duster? We will see in about 15 mins if the markets are paying much attention to this well and to which company gets the most attention, if either.
Comment by
Kelvin on Jan 23, 2023 2:02pm
Frank, Yeah that happens when there is little bid interest. Where's the bid interest?