Nice post speed. I understand this share has a lot of potential, which is why I have stuck with it even on a 66% loss atm. Would of been nice for some kind of update about operations for holders for the BOD before Christmas, but as we all know BOR aren't the most postful with their RNS's!
You forgot to mention that FI oil tax is the lowest in the world at only 9% royalty. You need 2 Barrels of oil from the North Sea for every 1 barrel from the FI to make the same money. So a 250 million bbl find in the falklands is the same as 500 million bbl find in the North Sea
Everyone who follows this stock recognises that the value in the ground in Darwin plus the significant potential in surrounding prospects, makes the true value of the share worth considerably more than current levels. As we know, the reason the share price is so depressed is a direct reflection of the perception of the market as a whole as to how likely the resource will ever be realised. A few years back, when there were concerns about the world running out of oil during our lifetime, there would probably have been a number of larger companies willing to snap this small explorer up in order to capitalise on the value which the Borders Board have unearthed. However, new discoveries elsewhere and the capability to now extract oil from other means [fracking etc] has meant the attractiveness of obtaining oil from more traditional means has lessened. This is naturally compounded by the harsh winters of the Falklands location, the deep water, lack of infrastructure in the region and the political issues posed by the Argentina connection / opposition to the activities and long-standing claim upon the islands and their associated resources. Furthermore, the biggest headwind currently is of course the falling oil price of late which potentially makes Darwin uncommercial - currently - and I stress the word currently. As we know, in time the oil price will return to higher levels and the outlook will then change considerably. Moreover oil companies know this and in many respects it doesn't matter what the oil price is currently, it only matters when you come to sell what you've extracted - which could be 10 years down the line. The market is likely to look very different in 10 years' time. Finally, the falling oil price could perversely benefit Borders since it is likely to put many operators (needing the oil price to be higher than current levels in order to survive) out of business. I believe this is OPEC's underlying objective. Once the market has suffered this attrition through an artificially low price (from over-supply), OPEC will cut production and the oil price will once again soar, leaving the OPEC countries free to capitalise and make a killing! Then imagine how attractive, all of a sudden, that the Borders prospects will become!
Well they haven't done me any favours. I was going to buy in at my half price 7.5p, but something stopped me maybe the Ignis closed fund post or maybe that was @ 5p. Now i'm thinking if Ignis are still offloading with 20mill shares then i will wait for 2.5p or mid Jan. i normally get things wrong so hopefully for you guys the shares won't go much lower.
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