RE: The Dog Star Effect18 Feb 2020 23:24
The common theme was that they were both retail investors favourites, recommended to mates and work colleagues, all attracted by those sky high potential, no certain, returns to be had because the knowledgeable ramped them up on websites and they were daring to do something different, that no one else had picked up on, made them more attractive. That was why they offered this certainty to virgin (or naive) investors.
[Had to smile at the Lady Day comment earlier, and wondered then where the similarity should be drawn: on the f***ing of a virgin or what DrT would annunciate.]
And it came to pass, that SXX could not get the finance together, and is to be sold at a knock-down price.
Whereas HUR could not get the farm-in/buy-out anticipated; and the mega return became diluted by the fund raising.
Then the billions of barrels started to reduce. Tempest/Typhoon were trimmed and pruned, then ceded.
Then Strathmore was written down and surrendered.
Then Whirlwind.
All while GLA was not living up to its much anticipated success, for the retained 50%.
But fear not Lancaster is delivering ahead of plan [one of the BOD bonus measures, jfyi].
There is both unexpected water and natural flow.
People become unduly attached to their shares and cling on to them waiting for the huge return, without realising they are going down and unlikely to get back to that level, but they might and FOMO rules. Not that they have an exit plan, it's probably 'spare' cash anyway. Hard earned, but just the kids inheritance...and hopefully not destined for the care home.
But HUR SP collapse is 'unexplained'.
The expectations delivered at the last CMD have come to the greater part of SFA.
The relationship with the OGA is either dire, or being misrepresented.
The Lincoln well is on P1368 South.
The rest of the GWA licence, p2294, expires in October. What will they (that's HUR and/or the JV) agree? 50% areal surrender to continue is the starting fee, obligations extra.
And Halifax comes up at the end of the year, obligations extra.
So the potential Resources to HUR are much diminished, and the road to Reserves is slow, with both dangerous bends and dense fog.
Let the love-in continue.
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