FDM 0.00% 1.1¢ freedom oil and gas ltd

Must admit, I thought we'd have news on the BR sale by now. In...

  1. 3,939 Posts.
    lightbulb Created with Sketch. 6563
    Must admit, I thought we'd have news on the BR sale by now. In the half yearly they said they expect the sales process to continue over this quarter with 50 expressions of interest. I don't mind if they take some time to get the best possible price. POO is in the low 40's, most commentators are saying mid 2007 before we get a boost to the POO, so there is no hurry to start drilling our leases.

    As for Yeager retiring, he has 25.9 million reasons not to. He only recently bought on market at 8c, so why would he retire?

    MAD is a long term proposition. We are not going to see the really big gains in the sp till the POO improves significantly, and that could take more than 2 years.

    I read most commentaries about the oil market. There are lots of views, but mostly about the timing, not the eventuality. One trillion dollars of Oil & Gas investment has been cancelled since the rout in POO. Most countries/producers are producing flat out to compensate for the lower prices received. Big projects such as the deep water projects in the gulf of Mexico take 5 years plus to get going. Many of these projects started 5 years ago are only just coming online now adding to the surpluses.

    However, this lack of investment will come back to bite. When it does, OPEC etc wont be able to increase production to compensate, they're already at max. The POO will skyrocket and when it does hopefully MAD will be at their peak production, with very valuable proven assets.
 
watchlist Created with Sketch. Add FDM (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.