Shades of binaryBang! … greed turns to fear on really a ‘no news’ NR … and ‘odd’ trading’… and now in suspense. What to do? Is this an incredible buy? Well, the rewards would be very high if good news comes at these prices. $500 gets you a real ticket. Most are holding here it seems. Were sell stops triggered? And so it goes. It’s ‘iron balls’ time. Even the big boys don’t know.
So, all they have said is that they have drilled through 247 meters of formation and are now running the logs. Why run logs if it’s already known to be a dry well? What has been detected/ hinted at during drilling? No one knows what the logs will reveal but management must have a pretty good idea. It’s still ‘shades of binary’ as far as I can see. They’ve exceeded depth by 200 meters, apparently into 247 meters of the upper Abiod formation. Does it go deeper? Much deeper? T
here were no hydrocarbon shows initially for Sidi el Kilani drilling the Abiod, but later it became a 50 million BBL reservoir. We have heard that indications were that BHN Abiod is highly fractured according to 3D seismic, and will wait on this.
KDcalgary reports that IR informed him that they needed the additional 200 meters to drill through the ‘reservoir’. Could the ‘reservoir’ be much deeper than expected? … or 247 meters? It’s kind of vague. There is no news that would give insiders any knowledge of the results they said. About three days for more news/log interpretations?
As Jwall noted earlier, the news can be interpreted as positive or negative. Nerves of steel needed.
Note to JWall: you mentioned that DXE Pres. was very tight lipped as he would not want Shell to get a sniff yet. If the results are good/promising wouldn’t it benefit NFK/DXE? Shell’s interest would be peaked … and conversely if results negative, what difference would it make since they would no longer be inquisitive. If the results are ongoing and positive surely Shell would be tempted to make an offer quickly. Are you thinking that Shell may make a low bid takeout too early ?