I agree - if POO remains above $60 I see there being such me good upside the the SP.
Also, if USA domestic demand heats up we could see POO go over $70 particularly as I believe Saudi Arabia want to have a high oil price for the IPO of the state oil producer.
On the downside the decade in the wells currently drilled has been fast. I would like these to settle around the 500 BOED per well. Currently sitting at 550.
When I have a chance I will compare the old MAD proven Reserves and SP vs the current FDM proven reserves and SP - unless someone has already done it and wants to share?
I will be the first to admit I bought into the MAD reserve hype and good t a bit singed! This management have not hyped anything but are understated. They continue to deliver.
2018 will be interesting- currently market has not build into the SPthe 4 new wells being drilled - first underway at present nor the doubling of reserves IMO. I expect a slow track up to the mid 40’s pending the announcement of the wells being completed.
FDM Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held