RE: Discussions6 Feb 2015 10:18
Will be a much more valuable prospect when oil price recovers.
There are two ways to look at it from a company view
The first is that they are not rushing to buy when oil price is down, why increase production and assets when your making less profit.
The other way a company will look at this is, if they need more production then this is safer bet than exploration of unknown fields.
The balance will change and best deal will come when that balance changes.
One trigger point to look for is Putin denouncing his support for Assad , this will trigger the Saudi princes to sort the oil price out and companies will recognise this trigger point and move swiftly to acquire what they want as price of oil turns to some recovery.
Other triggers could come before that, but unless a company is running low on resources, why would they need to purchase whilst instability in oil is so high.
A takeover of the company could also benefit some larger companies, this arguably could be better at bottom of the oil price, but again with uncertainty on how long prices will be held down, why act to early.
patience is key, and watch for any sign of the triggers on oil price as things could see a rapid change and not just here but across the oil market with many acquisitions.
I suspect interest is high, but why would they show their cards before they need too.