RE: Hangover on oil, lol5 Apr 2020 11:52
There may well be better investments available just now but only hindsight will tell us if our research and choices made were correct. I bought a few in TLW on Thursday on the basis of positive signs of negotiations around curbing production. It was a bit of a whim and they did appear to have been hit particularly hard of late so I thought they may respond well to the curbing talks. I had no idea that the next day they would announce a restructuring of finance around reserves based lending and the price went up 47%. Entirely luck, Price went from about 9p to 17p. It cold have gone the other direction if the willy wangers said they were increasing production and the poo dropped further to $10. pity that I only put £500 into that whim. Luck and hindsight. Here I have a bit more than £500 but knowing that the price moves quickly on any positive news, and that the gas will be monetised at favourable rates by the summer, the risk for me is acceptable. Current operations at wells 16, 38 and 51 may or may not be proceeding, however, they will at some point be sorted one way or another. This then leads us on to the new acquisition which should add production later this year, probably end of summer time upon completion of the some burger deal. There is then a significant potential to workover, clean up or even sidetrack existing oil producing wells to significantly improve production by year end, by which time the SP should be 2-3 x current levels at least. On that basis, I am staying in.