RE: Board of Directors Drop, your comment is spot-on. This well is enouraging. So why was the President fired? Is this a rational decision or one made out of panic or from in-fighting? Is the board on the side of investors or serving its own interests?
Dry holes are a part of the business - this well sounds like it has a lot of positive aspects. Oil shows, good reservoir, lots of real encouragement here. A big discovery may very well follow soon, possibly even on the next well. Not a reason for firing, at all.
Cost over-runs are also a part of the business. Weather, unexpected drilling conditions - they happen all the time. And these drilling contractors knew what they were getting in for - they are not drilling for EXXON and knew that - they will certainly be be patient, supportive and help the company move forward. The contractors are our partners and friends! Bottom line - the cost over-run is not a reason for firing either.
One thing is for sure - the board did not have our best interests in mind when they chose this particular moment to act - their action contibuted to the sense of calamity and dispair that has rocked investors at the time when calm, a positive sense of direction and confidence in the future were the sentiments most needed to be broadcast.
Lets all remember the dry holes and cost over-runs that Heritage faced before their big strike in Uganda. There are many other cases - one thing is for sure - encouraging dry holes, like this one, more often than not, precede the big discoveries.
The board owes the shareholders a clear explaination.
Lets all get positive and turn this thing around.