RE:RE:RE:RE:RE:TRIPLE BOTTOMYes jada13 my wife is from those jungles and has seen the numerous times insurgient groups have blown up the Cano Limon - Covenas pipeline. It's a lot more peaceful now. But operating costs for PRE must have been horrendous. As an aside, because I shouldn't be talking about other plays, maybe keep an eye on Colombia for opportunities. They're down to only 600,000 bbl/day production. Their national oil company Ecopetrol wants to ramp that up in a big way. And the geology in the Magdelena River region is loaded with hydrocarbons they say. Also maybe keep tabs on the western region of Guyana near the Orinoco River. Venezuela still claims it but if Chinese tell Maduro to lay off, he just might. Lots of potential opportunities in these parts. Offshore Santa Marta, Colombia is supposed to be loaded with natural gas.
If fec starts making some serious working capital then because they've proven that they can make money with the odds stacked against them in the most hostile of environments then long term their price may be a bargain right now. No, I am not pumping and dumping. Let's see what the NR will says first. My own assesment is that it will be positive and that oyl sp is close to being fairly priced right now with lots of upside potential in terms of enterprise value that will be gradually baked into the sp.
But who knows for sure right now. Maybe they're in negociations with Maersk to contract the rig for another hole. It's there now. Avoid demob and mob costs. And Maersk probably needs an answer soon. Heck maybe even Maersk may JV on a next well. They got lots of cash too.