Clear view28 Mar 2024 16:56
Hi newtofo- isn't here an option for FOG to buy back into any wells which it has not fully participated in ? I recall POQ saying that they could do this - admittedly at a higher cost- but if the wells are a success then any future buyer just pays a multiple of the initial drill cost and regains the 22.5% or whatever they decide. Key here is the repurchase is based on drill cost not on the drill success.
Strategically this ability to decide participation at the outset with the ability to buy back in is a major benefit which the market currently just does not see. Any future buyers will see this and FOG is saved from currently diluting at such low levels.