RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Previous posts from sila1986 and hockeylad33There is some downside potential, agreed. In the case of the dispute between SNN and PDQ, it is minimal. The maximum outcome is a loss of $2.9M. Odds are that the arbitration will settle somewhere in the middle. The bigger problem is that it is delaying Verdal-2x testing.
However, the potential upside is huge. If even Loto-1x was proven commercial, it is worth 3 times the current market cap easily.
If Dorados is proven commercial, or Verdal, each of them is worth a multibagger. A big multibagger (20mm bbls, 40mm bbls, 100mmbbls??? )
If they drill 1 other prospect at CPO-5 and hit (they have several large shallow prospects covered by 3D and permited), it too is worth a multibagger.
If they farmout Tacacho or the unconventional at Talora, it is worth a carry in excess of the market cap.
Plus they have cash on hand equal to the market cap.
Pretty good risk reward ratio .... the main risk is management continuing to sit on their un-motivated butts.