More info from discussions. I discussed briefly the fact the share price fell out the bottom of the dumpster. Management is not happy about the share price but in todays market there is just not much that could stop it from dropping. What he did say was that the share price is not a concern for most of the big boys who have put money in. ROE has done financings way above the share price.
He said the share price will have no impact on raising money for developing the Amititlan block. The money will be available when needed. Aside from big money groups who are interested, and there is a lot of money looking for projects like Amititlan, Lukoil can finance it all by itself if necessary. He indicated that once the company has drilled the first half a dozen or so wells the project will become self financing. Money is not the problem, will not be a problem. Once it is self financing they will just keep adding drilling rigs and it won’t take to long to get the field to 50,000 - BOPD or a 100,000 BOE’s per day.
He indicated as well that once ROE gets approval, they can be drilling within 3-6 months.
We also discussed briefly the fact that AMLO and his Government are 1 and 3/4 years through their 6 year mandate and have very little to show for the time they have been in power. Even though the new government did not take over until December, AMLO has been running the show since election day. Only 2 of his 20 new fields have produced even a few barrels of oil and the fact that there has not been much progress elsewhere is starting to put pressure on AMLO. He needs to see some success happening and with the Mexican economy going into recession that puts further pressure on the government to find new investments and to make big announcements. The huge drop in the Peso value is putting big pressure on Pemex and the government as well. These pressures are all positives for ROE and the private oil sector.