GREY:WFREF - Post by User
Comment by
wilwalon Aug 09, 2015 10:03am
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Post# 24001159
RE:RE:MIE
RE:RE:MIEThat is an excellent presentation, thanks for that qwqw.
The detail is remarkable. You can find out more about LRE in the MIE presentation in a concise way than on the LRE web site. It's obvious that MIE is serious about completing this deal.
If oil breaks $43 and heads into the $30's for the next few months, I wouldn't be surprised to see a downward adjustment on the $1.30. The timing in favour of MIE is looking better all the time.
The Saudis announced in July their plans to issue $27 billion in bonds, the first since 2007. That's a good sign of what prices are not only doing to them, but to all of OPEC. They are caught in a trap. Keep pumping and lose money at low prices or restrict pumping and lose money at higher prices. The gig is up for OPEC and all they are doing now is depleting their reserves for low income. I suspect they will revisit that strategy soon and begin to manage supply again, knowing that it will cost them market share permanently. Who knows what they are thinking though......both their high price strategy of $100 and the current low price strategy has failed them at both ends. Had they kep oil prices at $70 all along, the shale industry would never have developed and the genie is out of the bottle.
I'm sure MIE is not looking at today's oil price when considering their LRE involvement, but looking further into the future. JP Morgan is looking at $50 average oil in 2015, almost $60 in 2016 but see it rising to $90 by 2019. Investors are probably looking at that sort of scenario when investing in oil today.