RE: Bridges12 Jul 2020 17:57
Hi OMM I mainly stick to the main market and buy shares and have one or two explosive plays; however I do use IG CFDs not futures when I see big moves in the market, usually after a crash I try to catch the wave Back up. I am out of oil cfds now as I see the risk/reward ratio too high for now; although I see it going over 50 just not sure when hence am out. It was a good run but my exit plan was the top of the gap, I let a small position run but decided to close it. I worked for a big investment bank in the 90s but got out in early 2000s but continued to trade. To answer your questions and this is purely my opinion and not for anyone to act on it is ..... Once we see ratification this will be all over the news and I expect big demand for the small free float in circulation. Since the troubles elsewhere in Africa Such as Mozambique coupled with the military protection in Ghana, I see Ghana becoming a big player and an attractive player in the African Oil and Gas market. If we get intelligence that meetings have taken place and that the PA is getting ratified then I will expect the sp to rise well above 2p as demand picks up into ratification. Once farmin is announced then we will get a bigger rise through to drilling. The 40m they need for drilling will come from a partner (not placement OHS) who is waiting for ratification of the already signed PA. As for the valuation post farmin before the oil price collapse I thought around 200 to 300 M MC. The reason behind this is where the Tano 2A block is and the data available to date makes it highly probable that there will be huge discoveries of oil and gas. Just do the math on 100k bpd with a 60% share with an allowance for farmin = huge revenue. This is all just my opinion and where I think this is going. GL
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