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What happened to him and what does it mean ?
Looking for conventional oil and gas.....they will very likely buy the Egyptian producing properties at a bargain price, then what ...... the end ???, they are not interested in Algeria and for good reasons
To compare with the Dragon's past offer is a mistake and misleading. First the current oil price, then the expected future price In the current environment Algeria Ain Tsila value = 0 due to the state company Sonatrach. This project is not economic and will not be economic any time soon. Worldview operator no way, will be rejected by Algeria. The only value is the producing properties Egypt and Eastern Europe . So how much ?
I do not understand what they are doing. Do they understand what they are doing ? Ohanet is a conventional reservoir (plus fractures) with only 12 wells needed . It is totally different from AT. AT is a complete unknown once you are out of the NW corner and they know it.,because they carefully avoid talking about the area South of AT-2. Just look at the slides from the last presentation, subsurface, full of contradictions. Only 12 wells planned and possible in the NW field area defined as a high K layer/zone (2.5 km spacing) . Where are the other announced 12 high gas planned producer wells needed to meet first production ? They don't know yet ??? what is going on with this so-called experienced team, all with Ohanet experience and new to PCI? Don't we have the right to know ?
Please look at the past history of Worldview in 2013 and Exillion's experience with them. Worldview will destroy PCI if they succeed. Why ? because BOC is ahead of the game anyway, but Worldview does not know that yet. Could PCI be an empty shell ??? not in the eyes of Worldview for sure. http://hsprod.investis.com/ir/exillion/ir.jsp?page=news-item&item=1307102429605256
They played the game but lost very big so far on paper. They will request a board change and then what ? fast track to complete destruction of PCI sold into pieces with AT sold to Algeria for peanuts. In the meantime Hess operator in Kurdistan needs somebody to shovel the snow at the well site (seasonal job) if nobody applies for that job operations on the well will not start before next spring.
The SP was already inflated prior to the takeover rumor due to Worldview agressive buying. Evolution of holding by Worldview: 31 Dec 2013: 5%, 15 May 2014: 12%, Oct 2014: 29%
May be an attempt to stop the free fall and waiting for a real offer from Worldview who pretended PCI was undervalued. Worldview is a big looser today. If they continue their strategy PCI will sell into small pieces with Algeria AT back to Sonatrach for free.
Must be very happy today, they can increase their share of the company. Historically speaking, 127 purchasing price is not too bad to start the week. I would expect a major management shakeup
If they want to sell before developement drilling and production, they must have a reason, do not underestimate them.
Different possibilities: They have already made up their mind and are awaiting the Algerian authorities green light or They are still evaluating the properties not knowing how much risk they can afford to take. But they are cash rich and technically very good and competitive, just look at the blocks they acquired in the last Algerian bidding round, nobody else was interested in those offered blocks. That mean they have an excellent technical team ??? Cash-rich new companies always make the same mistakes, they re-invent the wheel all the times waisting a lot of money because of a few blind immature managers/owners with a big ego as they think they are the best in the world. We need more of these companies like Dragon to help save small companies. But Dragon like others before them will learn they have to pay their dues. That is what we call history and everybody knows that history repeats itself. In addition, Worldview is probably not too happy with this situation. Personnaly, I put Dragon and Worldview in the same basket. Answer in three weeks or before. IMHO I would not hesitate to go short.
IMHO they are stuck with their 25%. No more buying from them unless they want to make an offer which would have to be higher than the one in the making ??? something they will not do because Algeria does not like speculators.They could also kill PCI by making a mistake, in other words they could cut off the branch they are sitting on. Ignorance and greed can make you blind.
The Dragon offer is a fair offer, it will not be perceived as pure speculation. In addition, Dragon just got an exploration block as operator in Algeria and is partner with ENEL on another (on offered blocks nobody else wanted). The current president of Algeria used to be a resident and business man in the UAE. And most important, Dragon has cash and Algeria wants this project to go ahead. So things could move faster ... but unfortunately, nothing moves fast in Algeria.
I was thinking the opposite. It will run out of steam because now is the long wait, first a firm offer from Dragon, then the Algerian government approval. It will take a long time.....And one thing is for sure the Algerian Government does not like speculators. For the Algerians, Ain Tsila belongs to Algeria. Worldview will very likely not bid for the company because their offer will likely be rejected. Remember First Calgary Petroleum in Algeria a few years ago!
04 July: Two new board members from Worldview appointed : 20.04% shareholder 10 Sept: Increase to 22.04% 06 Oct: Increase to 24.23% and Worldview did not know about Dragon evaluating PCI during all this time???? If I had known I would also be rich. I need an explanation. Thank you
Was it takeover speculation or/and Insider Trading ???
Both companies were awarded blocks in last week Bidding Round announcement: Tinrhert Nord covers 2,907 sq km in the Illizi Basin, Dragon (operator) 70%, Enel 30%. Commitments call for 2D seismic + 4 wells. Msari Akabli covers 8,096 sq km in the Ahnet Basin, Enel (operator) 70%, Dragon 30%. Commitments 3D seismic + 3 wells.
I wanted to say possibly or with ??? Sorry, that is so much news and the offer is so low so what does it mean, so another ???
Over the years I noticed that the only way to make money with a high risk company like PCI is to buy the rumor and sell the fact. Keeping this stock for several years without coming in and out at the right times is a huge mistake.
Interesting to read the story between Worldview Capital Management and Exillon back in 2013 http://hsprod.investis.com/ir/exillion/ir.jsp?page=news-item&item=1307102429605256