growler1664, I agree with you that relinquishing Mauritania and the award of the Mohammedia exploration permits cannot have happened with a day or two of each other. They have chosen to release both news together, which I think was another bad decision. However, I suspect the market will never like the company being awarded new acreage as it means that it will result in more spending. The company has been trading at year end cash levels for a long time now and any adjustment to cash is followed by a retrace in the SP.
I would have to disagree with you on this comment: ''Most of what Chariot has done seems to disappoint. (except for the odd farm out)....''
The only meaningful farm out has been to ENI but we have only been left with 10% of 768mmbbls - the best case scenario if we are successful with this drill is a SP of around 50p based on current oil price. We have follow on potential on Mohammedia but will the market assign any value to this until we drill?
The other recent farm outs have only recovered costs, nothing more - we sat on Mauritania for years and the BODs got paid, the seismic companies got paid, the brokers got paid but no money was rewarded to shareholders and the prospective acreage has been handed to someone else.
There was talk on III the other week about the Namibian central blocks having the possibility of containing 1.5bn barrels of oil that could be worth around £4 per share to us even after farming out but we were forced a couple of years back to relinquish the block and acquire again losing 25% of it in the process. The BODs managed to co ck up on Mauritania so what is stopping them from making the same mistake in Namibia? Are lessons being learned or are they still blaming market conditions for their failures?
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