In terms of the drills and the data which mitigates that risk - I have to defer to "Know Your Company" on III VOG board. I can't remember his handle here - could be Nostramo - but he goes into the Logbaba formation in great detail.
afternoon maisydaisy - yes, if the flow rate from the drills is good, and long term contracts for Bassa, Logbaba (including extensions) and Dibamba are secured on same $/scuff and 'take or pay' then we are rocketing past £2K for sure, but Rovers66 etc wanted a few of the risks outlined - however low.
all fair points, Siliv. personally, i can not see us not getting the contract. the drill flow rate is and has been the known unknown for me - but, it is now somewhat weakly hedged by the Bomono farm-in. the gray area is if the flow rate is not good enough to unlock third power contract then do we have enough headroom on the $27M bank facility to go process and hook up current Bomono finds?
I myself am always looking at downside factors, whcih are to my mind not too significant at present.
Upside - we have gas, we have proven fields in Matanda (seeps) etc and then 'well to burner tip'. As opposed to a O&G co. looking for say oil, spending lots on drilling with no certainty and then having to sell in the market/POO. Take HUR/Hurricane as an example - yet to make money, may be sitting on a big field, but then IMHO look at the mcap - nearly £700m as opposed to little VOG at £75m.ish.
Get it more right than wrong (drills, ENEO, Dibmaba etc) and we look sooooo substantially undervalued.
Yeah Biggy, but for me if there was bad news on the horizon Malcy would be the last person I would drag over to Cameroon, would be easier to spin it without his first hand opinion. Malcy doesn't work for VOG and has tipped us big this year, IMO if there was trouble he would probably be the first to talk it down and out of his bucket list. Anyway, surely we do not have that long to wait to find out one way or the other. Exciting times to be a Voggie....GLA!
thanks Rovers66. i think everyone knows i am positive and long on VOG but, all things considered, we may be relatively fairly priced until we hear certain, verifiable, factual news. The only draw back of not holding shares now, is that if the news is good, the SP may fly and the reward of the present risk will be msised. but that is what equity investment is all about - allegedly. AIMHO and GLA.
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