RE: Photomic196221 Jul 2014 17:16
i certainly wouldn't want to argue with anyone saying that the old PPA bod let investors down pretty dreadfully, with pis strung a yarn over a long period. i know the imminent rebranding of the company as MX OIL won't make money directly, but at least it might wash some of the bad taste away from the old ppa days.
i also wouldn't want to argue with anyone arguing that astar is a speculative stock -- of course it is, very much so, and if we are unlucky it will come a cropper.
-- but mexico is dripping with large o&e resources of multiple types and diverse sizes already producing, but inefficiently, or ready to be uncapped and zinged-up into the 21st C.
this is a high risk / high reward speculative investment, but into a stable political jurisdiction with extremely large proven o&e resources in need of investment and retooling. (with clear scope for further finds / expansion of known resources, such as the shales on the texan border area, through application of mainstream proven geophysical technologies). astar is not focused on innovative use of 'proprietary' technology, or assets in dangerous/unstable parts of the world, or on all-or-nothing dig a hole and hope to find something prospects, like poor old trp for example.
mx oil may be very big indeed if things work out, but first and foremost i expect them to secure smaller asset(s) which can generate cash, and then profits, pretty speedily --- then adding a few of those together over time to get into a position where they could tackle something more capital-hungry. so they certainly will need to raise money to fund the early assets, and investors here should be in no doubt about that and not get too twitchy on placing prospects in due course. but i hope an emphasis on the early acquisition of productive (but in need of modernisation) assets should mean funding size constrained, and at a decent price.
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