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Spdr S&P Oil & Gas Exploration & Production Etf V.XOP.W


Primary Symbol: XOP

The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of an index derived from the oil and gas exploration and production segment of a U. In seeking to track the performance of the S&P Oil & Gas Exploration & Production Select Industry Index, the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the oil and gas exploration and production segment of the S&P Total Market Index (S&P TMI).


ARCA:XOP - Post by User

Comment by Storckon Oct 10, 2013 8:20pm
211 Views
Post# 21808807

RE:RE:Am I really the last guy...

RE:RE:Am I really the last guy...Check, I think you have realistic expectations and ask some good questions. The numbers thrown around here really are pie-in-the-sky, and these deepwater projects take many years to move from discovery to development and production. As I mentioned before, I wouldn't be surprised if XOP doesn't last until that point. In the event of a commercial discovery the oil in the ground will be worth more to XOM on an incremental basis than the market gives to XOP and they'll have no trouble making XOP shareholders an offer they can't refuse. The big players really do not like to have minnows hanging around trying to raise funding to keep up with the program. At 83% XOM will have the carrying vote under the JOA for anything they want to do and could easily outspend XOP into the ground.

I've not heard anything about a pooling arrangement and would be surprised that if such talks were going on it hasn't remained confidential. A more typical process in these situations would be that each party first evaluates its own block(s) and if they have a discovery which crosses the boundaries they would approach the government for approval of a unitization arrangement (or, the government may require it). But who knows - maybe they both see some risk-sharing benefits to cross-assign a portion of each other's blocks and explore jointly.
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