RE: Sp26 Mar 2020 10:36
From The Old Trout on ii
This is truly a gift from the gods, thanks to the decision by Schlumberger to withdraw from upstream activities. After all, its primary focus is oil field services and it only ventured into exploration and production a few years ago. The current collapse in oil prices will have neccesitated it to significantly reduce capital expenditures under pressure from its shareholders, but the deal gives them the opportunity to benefit from the massive increase in BLOE’s share price which will flow from this deal. What’s not to like about that?
It seems to be taking the market a while to address this transformational news but when oil and gas prices start to recover I honestly expect the stock to ten bag from these levels, assuming steady progress in monetising the massive resources that Block are now sitting on, and that is why Schlumberger have done this deal with a tiny little company that has an operational team in country and a very good relationship with the Government agencies.
Good luck all,
Tot