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13/11/15
09:19
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Originally posted by cmonaussie
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Hi Spec,
Arg! indeed.
I agree that dwelling on the past isn't particularly useful. HOWEVER, there are lessons to be learned and some of them are very painful - hopefully a reminder to not do it again.
1. Understand why you invested in the first place (arguably, when NSE made the "strategic decision" to enter EFS, that should have been my exit, it cost me a few pennies a share but nothing like what it would to have hung on).
2. Understand the "new strategy" and asset. This part I knew and what I was so vehemently against it - and the more I looked at Atascosa county and Peeler wells the more I knew I would exit. No matter what posters here put up or what mgmt said this asset was marginal (comparison to other areas in EFS) and the capital requirements were beyond NSE (inclusive of the low rate RBL which wasn't)
3. Understand the "seller". That's a little harder to do, but Gary Evans has been around for some time (and has been successful as well). But at heart he was a banker I believe. He built those companies using lots and lots of OPM and this venture (MHR) had "overextended" stamped all over it. Somewhat interesting is that Morgan Stanley looks to be the ones putting MHR to the sword.
Too many ASX juniors think they go over to USA with a handful of dollars and come back with barrows full of cash. Shale requires scale.
GLTA
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Agree with everything you say Cmon.
I won't touch another shale co. again.
If I want exposure to mass production, I will just buy some Amcor shares (everybody loves boxes).