I was starting to worry about VOY weakness over the last few days. It could have been the weakening oil price, which has also recovered some ground, but the more likely reason was the exercise and partial on selling of director/employee $0.25 (and a few $0.20) unlisted options that expire 12/9/2004.
I'm really impressed with the ability of VOY management to stitch up this deal. Management exercised their options (extra cash in the bank), kept a some (probably what the could afford to keep), and on sold the remainder at $0.27 which was above current price and close to recent high.
So what can we learn from this exercise. a) there is significant demand at $0.27 (around 5.5 million from memory were on sold), This bodes well for the share price going forward. Management kept a portion as well - clearly a vote of confidence. b) management got $0.02 ($0.27 less $0.25) which was above current price, and close to the recent peak. This means, either there was significant additional unfilled demand for the option shares, or VOY management are exceptional negotiators - I suspect a bit of both.
With Fiddich scheduled in around a month the excitement should start to build. Fiddich could be worth $0.30 to $0.50 per share to VOY. Fiddich will be followed by Hadda and possibly another 2 wells (Corona and Flying Foam).
Whilst oil and gas exploration is a probabilities game, I strongly beleive that VOY is an excellent stock for the long term.
