Kangaroos67 Did you reference the wrong person here? just checking as i never tell anyone to buy or sell in stocks. only provide my opinion.
I thought of buying in but there are fundamentals that Spinifex point out in a post months ago which made me question this stock. It was related to a comment made by the company about drilling in summer.
I too don't understand how this can occur during summer due to the Alaska Tundra. The very good point that Spinifex made is that if this company can drill during summer, then why are the bigger companies not on board.
If it is some sort of new technology or process someone developed to move drilling equipment on site in summer, wouldn't they be telling everyone company so they can get rich?
I could be totally wrong maybe they are keeping it to themselves and using this company as a trial.
Not trying to be negative, but the announcement has a lot of hype due to the name of the announcement. this can back fire a lot if the company does not hit the right target. There are lot of unknowns like how many drills are required to access the 1.6bb? it is getting closer to summer so what is happening with the summer drilling? if it is going to happen this year, they need to start organising that very soon, otherwise it will be a winter drilling.
At the moment, XCD are still compiling their data to provide a more accurate seismic view. this will take some time, then more time to work out the best position for the drill(s), then i guess farming it out to someone who wants to drill.
Do they want to get into partnership with someone like PMO as they are about to drill on 88E, and once they have finished, move it to XCD tenant for the summer? (not sure if this is even possible but IMO, the tenants would be close to each together and its is a matter of building an ice road between the two).
As David Wall is the largest shareholder on XCD and Director for 88E, this will be good incentive for him. If 88E is successful, then PMO would most likely be interested in XCD and a cost saving for them to move the rig a short distance, however there is a very tight timeline for all this to happen, and it also means the rig is stuck on XCD until winter 2021 before it can be moved.
This is only an idea as i am trying to work how XCD will drill in summer.
