Diversification and voting impact.18 Oct 2018 09:01
I've posted this yesterday at 20:38.
JohnnyB.Goode - spot on research. Colorado Elections. Such things does affect companies and their share holders. From experience when I was invested in GoAhead, 2 years ago, before parliament elections - just because of rumours that labours could win and nationalize trains SP fell from £19 to £16 back then.
That may be also explaining why they have sold ED and how they have managed to buy WD acreage so cheap. It all starts to make sense now. I bet BOD knew about these election proposals at least one year ago, so they have decided to limit the risk and put it on True.
As it is highly unlikely that vote will pass and 2,500 feet rule will be applied - there is still always such possibility as we all know (Brexit xD).
Thankfully Colorado is just one of their plays and as long as they are not making things up and that they really got that Nitrogen ready to be extracted and sold - things will end well here.
And as the opposite if voting will fail and limit of 500 feet for fracking distance will stay, we may expect buyers to be back as WD and ED will be even more attractive than it is now. And it will be more than sure that we will get another 6 to 8 wells next summer at ED and maybe even a good deal (20% interest) on WD next summer as well.
That voting is really going to affect this company future to some extent.
Can't wait for November to see how it goes xD