Guys and girls, we all know of the potential for this To go up or down from here. Suggest a stock answer for anyone trying to talk it down is something like, "that's ok, I'm trading it" or similar. Just looked in and all this arguing is pretty pointless now.
in any oil company is a bit like a chart, it goes up and down with higher highs and lower lows as new wells come on line and that's not rocket science , its just how it works re declines V new wells. Declines are not bad news , they are expected and its a part of the industry that we are invested in . All oil companies have declines , but there is not one on AIM that is drilling more wells than us that will see production upped regardless of decline rates over the short medium and especially the long term.
Well if that RNS was good enough for you then who am i to argue. But me and the wider market were not very amused. Flow rates for only one of the 3 wells? pressures? estimates for the other 2? timescales to get the other 2 online? Was the oil high quality? Its as if LGO want to cause confusion so the market just assumes it is bad.
Its simple maths , say you do one well and it produces 100popd and declines 40% in a year then that well will now produce at 60 bopd but in that year span, you have drilled a further 10 wells that have depreciated at the same rate over a year and we will then have 660 bopd which more than accommodates any decline rates. The figures would obviously be higher as they would be drilled at various times in that said period of time. To much rubbish on here that we are drilling wells to accommodate the decline rates in just doesn't work like that.
I agree with that, it's sensible for someone not invested. It's a perfectly rational and safe type of research to do. There's nothing worse than being uncomfortable with an investing decision that's been made because it will ultimately eat away at you until you've proven right or wrong.
What isn't sensible is someone saying "They haven't provided decline rates but they're struggling to offset decline." There isn't any balance behind it and it get's put across as fact when it's nothing more than an opinion. just as pie in the sky as someone claiming 5p on Monday!
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.