Malcy28 Feb 2020 12:40
I have followed BPC for what seems like about 10 years now, over that time I have remained cautious as I have been unable to tick all the boxes required to suggest that the risks had materially moved in favour of the investor. As of yesterday’s announcement with regard to the environmental authority I have come to the conclusion that at least in one way or another all those boxes have been ticked to a greater or lesser degree.
Those boxes are, appropriate licencing etc from the Government including Environmental authority, getting funding via a farm-out or similar, getting a rig and drilling a well. The farm-out has not yet happened but I still believe that it is possible particularly if one of those remaining in the data room realise that this ship is going to sail with or without it, indeed that the time has come to or get off the pot, so to speak. That the company has now raised enough money, one way or another, to drill the well, means that all those hurdles I have envisaged have effectively gone away. The company has a drill date in April, the bills have been paid and the rig contract is signed, all they need now is to strike oil……….
Investors will know that this is still very much a long-shot, a big old wildcat that whilst some have it as slightly reduced risk is nevertheless probably a one in twelve shot but aiming at a big structure. Many investors in BPC came to this party a long time ago, the wait has been a very long time but now the waiting is coming to an end, the drill bit is about to make a few dreams or shatter a few illusions, at todays price of 3.6p it is all or nothing but an oil find in April would undoubtedly make it a ten-bagger or more, the choice is now yours….
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