Drilling two Wells a year is a lot. 88e can only drill one well a year and all 6 Wells failed at 20 to $25million per well . Flowing Wells in Trinidad is easy but those Wells are low flow , so I see why the need for 30 Wells. But it's the cost to drill those Wells is of concern and where the money is coming from.
Willec unless the flow rates are super high on S2 I don't see money from that well to fund the other 30 Wells as they say. They are hanging their hats too high on drilling. Trinidad Wells are know for low flowing Wells, they have "old wells" or maturing fields. Remember they been pumping oil since the late 1800s
So you guys only have one sure well to drill and based on that you have cash flow for other Wells?
What happens if S2 fails , where is the money coming from?
I am being real here nor am I ramper or deramper. I grew up in Trinidad and worked in the oils fields both in Trinidad and the offshore Northsea. I do have knowledge on the oil exploration business so I can't be fooled with tech data.
With all these drills scheduled, where are they getting the money to do so? Looks like further placements and dilutions . If placements are the order of the day then you guys will always have to keep buying to otherwise your share size sinks. I only managed to keep up with 88e but buying more cheap shares and cashing in on the spuds.
Difference here is you guys have producing Wells while 88e has only a few jars of oils that's they have extracted from mud samples. I think think this share is very long term, one in which you buy and forget then come back in a year or two.
About 6 years ago 88e had a share offer for "qualified holders". I took up the share offer when it opened and immediately you could buy on the open market for non holders at a price below what was offered to existing holders. So I bought at the offer price and had a paper loss. I think it was around less then 0.4p dropping to 0.29p. On their first drill the Lab results came back and it shot to around 4p . I made a huge amount of money from that share offer. I brought at the offer price and then on the opened market price. I held on and waited until the 4p , I did not expect that rapid rise but I took profit and I carried free shares over. On every 88e drill to date I made profit . It was a cycle of placements, dilutions to which I brought when the prices was low and sold on the spud. I too was hoping for the £1 share then 60p to 40p and now it looks like 10p to 15p for 88e sell off. Moral is to wait and take the prices when cheap and then sell on the spud. I have given up major take overs , buy outs and just riding the waves.