RE:News on Tethys PetroleumThe way London has been on a selling spree since the day right after the announcing of the farm-out you might get your wish very soon, maybe within 2-4 weeks. London's been trying to break through the low 70 cent support since April and they broke support today and closed it at CAD$0.69 on nothing. Mondays are always a selloff for TPL. Always.
The dumb thing out there is that TPL is sitting on $0.80 in reserves and just got another $0.22 in cash ($63 mil) from the farm out and people still want to play momentum games, even though its sitting on $1.02 in NAV and starts drilling in a month at Doto, which could double the total current Kazakhstan reserves of TPL. This is far beyond just 1 Tajk well that just spuds 18 months out.
Drilling 2-3 new oil wells, testing 3 previously drilled/logged oil wells, testing 1 previously drilled/logged gas/condensate well, drilling 5 new gas wells and workovers on two gas wells that tested a combined rate of 21.2 mmcf/d (3,530 boed) and were never placed on production. TPL is going after a lot of potential reserves over the next 12 months. I estimate somewhere around 80 mmboe [Doto - 22 mmbo, Kalypso - 25 mmboe (just the Permo-Carboniferous zone), 10 mmboe from 5 gas wells and 23 mmboe for the rest].
The main problem is that TPL never holds onto a gain. It's just overrun with traders and not really much in the way of investors. And to be honest, I've seen the same trading activity far too often that I don't expect any uptick in the TPL price will hold. Any push up is quickly met with non-stop 500 share sell orders and stop any upside. Probably iceberg naked short sells. This is just one manupulated POS.