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Looks like those who followed JPMorgans comments saved themselves some profit or reduced loses.
I'll be looking out for that next operational update. Good luck all long term holders.
If Tullow exit thats no bad thing, but would Total SA buy? Have read article in Times business (with comments); so were investors right to assume Oil quality was the same as Liza?
For me its all about the 2020 drill plan! Could be Jethro channel or no drills in Orinduik!
Staying invested now and to be fair this has done well as a AIM shares IMO
Reggie, more to the point the ceo sat on the info for some time imv, except that some people were leaked the info[ could be from tlw or other partners] and started to sell , which means I no longer trust the people on this project .
Jp Morgan will say what ever suits their agenda and the results aren’t final.. the evaluation is still on going and will keep going until the last drill is done.. we could see total becoming the operator to speed things up, the Qataris are also in the mix.. the knowledge between them all is frightening and if jethro will flow commercially, I have no doubt that they will use everything at their disposal to make it as profitable as possible and speed up the production... Exxon are doing it with hammerhead which is similar to our discovery..
Reggie, TLW are looking for lighter oil.
"so they know more than the company do they"
Actually the results were evaluated by a third-party consultants with expertise in the development of such oil varieties so no hidden agenda or conspiracy theory here!
A massive overreaction by the market according to O&G expert Malcy:
https://www.malcysblog.com/2019/11/sound-coro-echo-wentworth-eco-longboat-talon-africa-oil-week-2019-videos/
...........they are behind 2020 drill programmes
Reggie, what else can the ceo say? If he said , it will be a struggle and I don't think this opportunity is as attractive as others he would have to resign and give up his salary. TLW are calling the shots and they say ......
Well you make your call whether you want to hold for the next operational updates on this matter. The markets couldn't be clearer on what they think and it's well covered in the press too. GL
so they know more than the company do they - ceo will buy shares when out of closed period imo as he alluded to yesterday
When the market and analysts at JPMorgan are questioning the commercial viability though, it's pretty obvious why at £120m market cap it's dropping. Both ECO and TLW should have been much clearer from the outset
Yes but also bullish comments from other brokers. Targets range from 170-235p that i have read so far
Shares in Tullow Oil plunged to a two-year low on Wednesday after the London-listed explorer warned that two significant discoveries in waters off Guyana contained heavy oil, prompting warnings that the projects would be difficult to commercialise.
The company’s shares fell 23 per cent to 159.3p — the lowest since September 2017 — by mid-morning after it announced the results of an analysis into the oil quality at the Jethro and Joe discoveries off the coast of the South American country.
Oils recovered from both wells were heavy crudes with a high sulphur content, Tullow said. Such varieties are generally more expensive to extract and transport. Refiners prize light, sweet crudes and the heavy variety also tends to trade at a discount.
The FTSE 250 company said on Wednesday that it and its partners were assessing “the commercial viability of these discoveries” in light of the analysis.
Its partners include France’s Total, which has a 25 per cent stake in the Guyana discoveries, and Eco Atlantic, whose shares are listed in both the UK and Canada and which owns 15 per cent. The remaining 60 per cent is held by Tullow.
London-listed shares in Eco Atlantic were down 51 per cent at 65p by mid-morning, even though it sought to strike a more optimistic tone, saying the quality of the oils in Guyana were “not dissimilar” to similar heavy crudes produced commercially in other regions such as the North Sea and the Gulf of Mexico.
It said the partners had sought the advice of third-party consultants with expertise in the development of such oil varieties.
“The company remains optimistic in considering the development scenarios and as the project progresses will define further information on plans and timing,” Eco Atlantic added in a statement.
Analysts at JPMorgan Cazenove said in a note that the oil quality “risks the commerciality of both prospects despite excellent reservoir quality”.
Al Stanton, analyst at RBC Capital Markets, said he expected investors to now be “increasingly cautious” on Tullow stock, which had received a significant boost in August when the first Guyana discover