focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
My personal opinion for what its worth is that this has bounced due to some punter buying up on the belief that... 1. crude oil will now bounce back up over 5-60 per barrel 2. the elections in Argentina now mean we can attract top tier oil company/Chinese investment/farm out partner 3. 2 pence is only cash value, the downside risks are still huge but the upside potential on a 1-5 year time horizon are exceptional and then the rest of the market jumped in as well sucking in other buyers/market makers/stop losses......all IMVHO and WTFDIK
For bor to survive long term we need, oil price to rise considerably and a farm in partner and an extention to the 2017 drilling deadline. All of those are don't knows at the moment, the only positive I can see is that the new administration in buenes Aires makes it more likely that bp/shell/exxon/chevron etc etc may get involved in even bhp billiton. If they can extend the license extention th this company has a chance to guess.
This is now seriously cheap. Forward looking with low crude/no farmin partner/South FI abandoned/cash running out/a contractual need to drill before the end 2017 the prognosis doesn't look good but I am now thinking a few £ in here could be a low risk/possible high reward trade.....
I have always thought, Fogl got the golden farm in agreement of the back of the Darwin result, maybe it was luck or maybe just good marketing by Fogl but they certainly called that one right good on them. I agree it has always struck me as strange that Bor are the ones with the discovery but they couldn't get the farm in (admittedly its condensate not crude. I have tow thoughts on this, as Wraith says, Southern basin is over, dead in the water (as all new oil exploration/possibilities of farm ins are really) but then again this is so low (not saying under valued) but so cheap this could be the bargain of the century....
There seems to be a consensus on this board and in some parts of the media that Oil prices are simply having a "hiccup", a small correction, there is no need to panick and prices will be back up near $70-$100 per barrel within a few months...... I know many of you will tell me many reasons why this is the case,, geo-political risks in the mid-east, shale bankruptcies, US-led demand etc etc etc, I am not here to discuss that however I think everyone is being a one eyed pirate on this, there are many reasons why crude could hit $30/barrel or $100 per barrel, but all investors must invest on the knowledge that crude could quite conceivably stay at these prices or lower for the foreseeable future. The constant ramping of Crude Oil on these pages I think does not help some investors and does not necessarily give everyone a balanced view of the price outlook (however informed and knowledgeable and correct these views maybe).
I think if you trade a cfd through ig/city index etc it is upto them how they hedge on the other side. In theory if they had buys and sells of euqual amounts they would not need to hedge, but I think they cover in the cash equities market.