SP25 Jun 2018 14:25
if you look at the SP of most oilers on aim they have risen on the price of oil rising. This happened with a time lag.
The main reason our sp rose was because oil price rose.
If we were selling 1000b of oil a day then and still was then the oil price rose by 30% then income also rose by 30% and the market will understand that.
There was also some good news albeit future probable kind of news.
The Work we undertook gave an additional nudge upwards but also remember this had been already funded.
There has been no official news since
The market will wait for sustained rates, not initial rates.So meanwhile the value drops.
This is because although oil prices remain stable, without news of what we are producing, it has to be assumed we are making the same in production as previously. however this also means that the possibility of more work needed and so markets prices in the POSSIBILITY of more funding needed at some stage.
Of course that may not be the case and we could be producing 10 times what we had before but until its RNS then market works on known facts.
The yearly financial results will not look good, we know that, but i suspect at the end will be a paragraph about current monthly revenue showing a huge improvement for future results.
We also have the anticipation and fear factor, No news on UD2. Was it a failure? Is a major asking us to keep testing and to keep it silent while they do so under the pretext of extended tests.
The oil, initial flow rates only, some worry if they fell off a cliff a week later, the positive in this is a 3rd party doing next well, i am pretty sure they know the true rates and decided it was good enough for them.
So basically we rose with revenue due to oil price, we fell later and now as without official news we are assumed to be at the same income and without news the market has to assume nothing changed and so we are going to need funding to continue. I believe thats not true, but market only works with facts that are reported.
YA global, we know the basic plan but the details still evade us, again causing some insecurity.
I need another 5 weeks to make a very large top up, so i am happy to be patient and hope price remains below 0.4 until then. So to be honest i am not worried and see an opportunity. I could be wrong and maybe company does have poor results but in my experience bad news leaks very quickly and is harder for company to sit on for long periods, Good news is easier to hold back under need to extend testing to make sure reasoning.
Just my thoughts
Sign In
Follow the stocks
