Remember argos £2.75 million in September so this share price is typical of MM overeact to a relatively cost cutting exercise benefiting our partners Noble. Many doubted their commitment after ER announcement , this. Whole exercise firmly dislelled this doubt. Personally I think we will drill about ten months from now as they want to get the tailend of the Falklands summer to drill Rhea. I agree with other posters they will not stop at one drill now , so effectively this delay has been a blessing and the share price down to rock bottom. Remember no dilution.
This just proves what I said some days ago , Noble are more than keen to drill , more than one well and also to reflect the ER debukule Argos have reduced their yearly payment. The company has good reserves and it would seem churlish to carry on demanding the original amount as Noble lost a lot of money planning the ER drill campaign. This share will rocket shortly and at these prices they are a steal.
And I think that's the key, if Noble mobilise a rig they will wish to drill more than one well that's for sure. Where exactly and with whom we don't know. But one thing I know for sure is that if I was Noble it will be a hell of a lot cheaper and less risky drilling multiple targets in Argos acreage which has cost you peanuts.
Well spotted. Every little bit helps. In the short term it does't really matter. What is very important is that Noble goes ahead and drill Rhea and maybe another well since the Day rate for rigs has dropped substantially.
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