Hello Everyone, re Baraka and Doom, it aint going to happen! Sorry to disappoint all those who think doom is coming.
It was a very disappointing result with the drilling of Monza 1 well. It took me the last 24 hours to take stock and this is what i see happening over the next few months.
I voiced my opinion with Dean, about the way the company has handle this change of direction. Everyone should know from the AGM notes that March was the date for the drilling of La Punta 2 well. La Punta 2 which is drilling into an updip oil field, has a very high success rate of finding hydrocarbons.
Now for Baraka to put this well on the back burner, and buy into a new field and take on a drilling program of 2 wells, will put added pressure on the share price if the first well was unsuccessful. As with the case in Monza 1.
The plan is good, but if you dont find Hydrocarbons then expect the shares to come under extreme pressure. La Punta 2 i believe will be a winner for Baraka, but why would management not drill this well first?
If you were in this position, and you as the CEO, looking for more production and more revenue, would you Delay the drilling?
I truely believe this delay in drilling La Punta 2, has destroyed any chance the Sept 08 Options had in being in the money. What a huge waste for all parties.
Having said this, the delay in drilling La punta 2 is what will bring Baraka some success and more strength to the share price.Instead of enjoying it now, we all have to wait another 4 months, until Management get their act together.
crazy k
BKP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
