As I understand the situation TDO are likely to spud a well into a formation that is known to contain a very large amount of oil from past drilling (likely about $4 billion dollars worth) that was not produced previously because it was marginal at $20/barrel (2000 - so now prod costs maybe $30/barrel), and in addition could upgrade this to much more oil with an adjacent unexplored tenement. The SP has been sold down to a sub $70m market cap despite probable earnings of around $30 - $200 million dollars a year starting in a few months time.
What am I missing? Why is the SP so impoverished to the point of being ridiculously low. Surely this could go to $3-$10 per share once this well has proved up what we already know is there.
What are your thoughts?
TDO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
