VST The Full StoryI have to say that this stock has had an amazing story and despite people saying that the management has done an awful job, I think they have done their best.
People were asking why they stopped drilling? After the latest news release the answer is quite obvious. VST could not continue drilling because they dont have the money and they have no assurances that there is oil in the Kometan. As private placement would be hard to get that additional 9M. The other option at that time was to agree with Niko to buy an additional share of the block. Again, they dont know whether there is oil down there and if they were to find any, shareholders obviously would be pissed.
At that time, VST took another option. This was to check whether there is any commercial oil in the upper sections which would need much less money to test. If there was any, despite they would still need more money to drill further, they would have had the option to do a private placement at much higher share price and get that 9M for much less damage to shareholders or as NIKO for assistance at much better deal than what they got now. I think this was a good gamble knowing that both ways NIKO was going deeper with or without them.
Yes, this has damaged the stock price, but again we are now where would have been if we drilled earlier and found nothing. The proability of this stock going rocket up is much more than it going down now.
Just my personal opinion. my average is 27 cents with 100,000 shares and still holding. NIKO would not waste more time and money and get into such a balanced deal for both sides. Everyone has found some sort of Hydro carbon in Kurdistan. Maybe this well will be a failure but VST is now well into the game with NIKO for the whole block. If we get 1,000 barrels still good.