Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The Falklands oil companies were once a favourite amongst private investors, but recent good news has only had a muted response. Back in 2010 companies such as Rockhopper (RKH) and Falkland Oil and Gas (FOGL) saw some crazy rises in share price and valuation of the company via its market capitalisation.
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Comments
wildrides
Its to far from markets and has no means of handling gas or oil . Cap ex will be massive for a suitable processing and dock facility .
Go for LGO on Trini ………. should double from here at the rate they are drilling .
Gary Newman
Wildrides,
I can’t see it just being left undeveloped despite the location, although it isn’t going to happen overnight. If these latest two finds turn out to be commercial then it will certainly help in my opinion as opposed to when Sea Lion was stand alone.
In terms of ‘long term’ obviously I’m talking 3-5 years.
LGO all comes down to the flow rates that they can maintain in my opinion – although I certainly don’t disagree with you that it is one that tends to rise during drilling as they put out lots of news releases along the way. From my knowledge of Trinidad it is maintaining those production rates that is often the difficult bit, not finding oil as that is pretty much guaranteed in some areas. Depletion rates are something that a number of companies operating in Trinidad have struggled with over the years.
RegiBlinker
Borders and Southern (BOR) priced at just a bit over cash offers exceptional value. Sitting on a big discovery and will go bonkers of the fam in deal comes off.