I'm thinking an average March qtr wti price of around 49.77 but at some point another drop sometime near the low because of this supply/storage issue. Then the "v" to get back to 60-70 by end of the year. Logic is mostly based on the 2009 trend but really just a guess. Also having a look at the lender survey and using the sensitivity case it gives a check on the price projected for 2015 and variance compared to current actual average. Assuming there was a basis to the projections will be interesting to see how the projections pan out for the year.
Dumb question from me now for anyone - rather than drill wells in the next 6 months does anything stop these junior oilers buying shares in other oilers as trading stock and a possible source of finance. The logic being the companies would be aware of "value" in the sector and companies that have invested heavily and possibly oversold. Therefore any OP increase could result in re rate and could provide lower source of funding to debt or equity or even better short term return than drilling a well. The outlay could only be $50-$100k and if a few of them did it would put some liquidity in the sector.
Cheers
SSN Price at posting:
1.4¢ Sentiment: Hold Disclosure: Not Held
