EOR 0.00% $1.40 eor group limited

W/C 8 Dec 14, page-3

  1. 7,453 Posts.
    http://peakoilbarrel.com/debt-oil-price-bakken-red-queen/

    It should be clear that
    1. lower oil prices will see the PDP value of reserves fall (as expected)
    2. the "close-out" of derivatives will be someone "wins" and someone "looses" ......
    3. lots of "forecast wells" WONT get drilled (ie production from USA "shale miracle" will start to fall in 6-9 months time....
    4. Banks will be much less willing to lend ..........

    Given the quantum of the fall in oil prices - there is (very) likley to be "blow-ups" in the industry .......

    it also suggests "there is NO FLOOR" ........

    IMHO - this is a liquadation event - and the only "safe" way to play - is to stand aside, and let the carnage unfold ....let the dust settle .......and if/when a company raises capital - you will be in a much safer place to invest .....just my opinion !

    Also to add to that,this makes eor much more risky and harder to get financing deals imo

    That said,it only takes a war in the middle east to turn oil prices around,but in the short term financing will become very hard for minnows like Eor

    Spec oilers atm are as attractive as a bobcat driver from Karajongs head,not very!
 
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