RE: 12m lows re-appearing9 Mar 2024 17:15
Yes and yes.
I can only imagine that the sums have been done by the clever back-room nerds who do the calculations and the results on the abacus are that it’s still profitable even with their currently worst estimate of what Millibrain and the Smelly Socks Lot might throw at oil companies from some lunatic tax-grabbing strategy.
Otherwise, why 1. Why would Serica have completed the farmin, with associated, non-negligible cost?
And 2. Same question really, why wouldn’t the JV just shut down the project and stop spending money if today they do not see it as being profitable?
The economics of a re-purposed, nearly new FPSO, in which NEO had an interest, together with shallow water and non-exorbitant development costs must (?) result in a reasonable return for inventors, despite desperate politicians, of all political hues, rummaging around in the depths of their fiscal resources to find something they can tax to pay for the ever-increasing benefits bill in poor old ‘Broken Broken’.
I remain mildly optimistic for this languishing stock.
Expecting or hoping for some encouraging news-flow in the near-future.
I might cut down my earlier forecast of £34 (or was it £43? Dick, I hope you can remind me) but I do see the broker consensus of £7 +/- as being rather pessimistic; they have to ‘temper’ their forecasts otherwise. 2 quid to 7 may not seem outrageous but 2 quid to what I calculate now to be £17 ( calculations can be provided on a cigarette packet if doubted) might, too easily, be doubted and hence lose any credibility.
Just wait.
The greedy politicians haven’t yet managed to kill The Greta Burkha Area and, as dim as he appears to be, I don’t thinks Millibrain will want, or be allowed by the unions, to.
Got to dash, that Mark X Jag is back. Needs his tyre pressures checked…
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