RE: Good Initiation note from Tennyson28 Feb 2021 19:35
Think the farm out will not happen until , Block energy show that they are making profit from operations.
Now ask why this is ; its a game of chess if you as a company are making profit and say we have a massive find and need a farm out to De-Risk then the % of is more in favour of Block Energy.
If you make now profit and you need to farm out then JV has the upper hand , Example AEX was worth £40 million and had 75% of oil rights pre drill ; JV partners had offered up-to $40 million to drill for in exchanged for 50% of claim leaving 25% fully covered for drill. Result is that share price dived and now worth £16 Million even that all drill cost covered by the $40 million.
The CEO which is not on my favorite list in 2020 must say pulled some good deals , my grip is invested at 5.5p on news that gas will flow shortly which is one year out of date.
Having hedge now at 2.9p with nearly 0.1% of company's shares , so very heavy in now
Anyway happy with managements directions