Ann: Becoming a substantial holder, page-7

I have owned COE from time to time. But cannot understand why anyone would want to own it now.

Irrespective of what production is, this company will never pay a dividend ….never has, never will. Most of its assets would be unsaleable due to the large abandonment costs associated with the assets. For the latter reason, it is highly unlikely anyone would make a takeover bid for it.

I’ve not looked at the numbers recently but if the abandonment costs are truly reflected in the books, the assets less abandonment costs must be marginal. And getting worse as the costs will inevitably increase and the assets will inevitably decrease as fields are depleted.