Oilman Jim's Blog20 Oct 2019 16:49
Let's start with Rose Petroleum (ROSE), which announced an 85% reduction of their Paradox acreage from around 80,000 acres to 12,000 acres to save on annual lease rental costs. They still retain the key drill site, but ROSE is already in this deal on a promoted basis, paying 100% of the well cost for a 75% interest in the acreage, so although they talk about it, it's difficult to see a further farm-out. And since previous management couldn't raise the funds to drill this project, why should the new? The current management talk of new deals, but still have no details - and the big unanswered question of course is how are they going to raise the finance both for any new ventures and for Paradox?