Definitely, I'm convinced that the Hawkeye drill had a strategic purpose. As I mentioned last week, where we drilled seems to be the highest elevation on the licence and doesn't follow any of the characteristics of the other more successful wells in the area. If it was the cheapest drill to complete in order to proof up reserves then I'm happy if we can sell on for a decent profit. Even if its only £15m or whatever.
I personally don't see it going much lower. Two companies buying up nearly 8% of the company tells me there is something in the pipelines that has been heavily rumoured and news of it will likely be very soon. If not they would have waited until next week when the prices would have been nearer 0.75p the fact that they have bought in will be giving people confidence..
I really struggle with why some people invest in shares with little understanding, think about your statement for a while! "Been ave down and got it down to a bit under 2 now, but thinking maybe I should sell this as I dont think a bounce will happen! Anyones thoughts with it"
Why would you pump more money in to a company to average down if you think a bounce will not occur? Averaging down is only recommended if you believe the SP is cheap and will rebound significantly! Otherwise yes your average is lower and it might look slightly better on paper but you are losing more money at the end of the day!
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