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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 oilsupporteron Sep 28, 2017 10:43am
99 Views
Post# 26753339

RE:Why Would This

RE:Why Would ThisIf you want to refer to the price we reached with Liberia, I will just point out the difference between the Nigeria and Liberia programs here.

Liberia was an exploration drill in deep sea and was being run by a major, who had their own timelines and objectives.  We were not driving that boat.  Exploration had much higher risk as Liberia block 13  had never had proven reserves drilled on it before.  So it would never be debt financed because it was too risky, and as it was so costly, we needed a major as a partner.  Even if our first well was successful, we would be months and years away from production, as it would require infastructure and development. Exxon drilled one well, hit a duster, and then walked.  We saw the price we reached in anticipation of that exploration drill.

Nigeria is an appraisal/development drill program on an area with proven reserves in the past that had been successfully drilled  (3 oil/2 gas).  In shallower water, but far enough offshore to avoid the strife in Nigeria.  No quota issues, and a Nigerian partner to make our taxation issues easier, and majors all around us pumping a ton of money into  the area.  Debt financing is available as the risk is way different.  And we don't need a major as a partner because the costs are substantially less.  And we have a plan to produce from the appraisal well, and create instant positive cashflow.  So it is planned to produce immediately.   It is a program with substantially less risk and instant cashflowing objectives.

It is the above differences that will drive our stock price, if financing is completed and acted upon.  GLTA
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