RE: Far more buys and hitting FULL ASK13 Dec 2023 10:21
This isn’t new ground Bp was here before, a simple issue that no one brings up, is the oil price.
There was a case of a oil company talking about moving operations just outside the Falkland’s a unexplored licence vast area of virgin ground, but wouldn't even consider it with oil below $70 a barrel, harbour energy if i remember right,
BP surrendered its licence in Uruguay in 2014-15 oil dropped from $106 to the $50s the risk out weighed the potential benefit.
The oil price matters in exploration, if oil shoots up like the bulls are saying in an inflationary recession, this farmout is possible costs can be covered, but what if it keeps falling? CEG are in a tight spot for money and then if lower oil prices persist what then?
Their own presentation for survival they didn’t take into account oil dropping below $65 a barrel. This is something eytan never focuses on or mentions in his interviews, majors won’t do a deal if oil is too low they also won’t risk exploration, each major must have its own tolerance level to oil price declines.