The longer oil stays at these levelsThere will be more and more companies throwing in the towel, which will mean more and more production being lost. Many majors have cancelled huge projects that they need and they know this will all catch up to them. many projects take many years to bring on line. The small guy with no money is toast.
Our saving grace is that we have bought a lot of time with our hedges. If this low oil enviroment continues for another 6 to 8 months and then it starts to come around then Ithaca is really going to shine. No one knows how this will play out but right now there is a lot of pain in boardrooms all over the world and cash is something that many companies need, but the problem is no one is lending it anymore!!! More and more companies are going to bit the dust unfortunatly.
Ithaca does not have any of these problems as we speak and it looks like the bottom is setting in for this stock. It's 8 months out that matters to us right now and there is nothing anyone can do.
Wait this out and you might see this stock zoom to that $3 -$4 mark in a very short time.
Gekko might just be right in that we will not see first oil as we may just get bought out before Stella starts pumping the liquid gold.
At these levels this just might be the best buy out there!!!!