XCD (ASX) Ann: Conoco Confirm Hyrdrocarbons Encountered at Harpoon Prospect

Originally posted by marksman ↑

FANTASTIC news! A farm out has now got to be on the cards especially for the 2 well low cost drilling option. This elevates the value of the acreage tremendously and yet no word re the t/o! Have the board forgotten we have a bid from our "friends" (note the inverted commas) at 88E? They are clearly trying to scoop this company up at a bargain basement price!
If you want a cheap laugh then read the 88E thread. Those knuckleheads think they are over paying. Hilarious! Some are even talking about going to ASIC - LMAO!!! - as if ASIC would even listen to a bunch of mug shareholders on some online chat site! Talk about being naïve!
The board must respond to this unwanted bid by specifying a minimum cash amount in 88E scrip that they find acceptable otherwise we could be screwed badly. The 10 day VWAP determines the bid and not necessarily the prevailing SP.
The issue here is that news is pending re clarification of their Charlie-1 well results. News was expected in their last announcement in 2 to 3 weeks time meaning sometime between Monday and Monday week they will release possibly very bullish or bearish news. If the latter I see their SP dropping to 0.4c or possibly 0.3c and staying there for some considerable time. At 0.3c the monetary value of their bid is half a cent which is where our SP was before the t/o came into play! 88E could, in theory, end up buying the whole company for a crappy $3.5m!
To avoid this ridiculous situation of highway robbery the board must nominate a value per share, say 1.3 cents, as the minimum amount it would accept and then stress that the bidder must offer whatever multiple of their scrip equals this amount.

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marksman,

Seems you may have missed this from the recent Quarterly Activities Report,

"Clearly however, the investment climate for all oil companies has changed significantly over the last month and the Company has taken the decision to temporarily suspend the current farmout effort until there is some further visibility on the direction of both oil prices and capital markets."

This news from ConocoPhillips does not provide any further visibility on oil prices or the capital market. In fact it's due to these factors that saw the drilling at Harpoon scaled back from a three well program to only one.

There is no Farm-out on the horizon there is no low cost drilling option on the table. The company themselves do not even know if a low cost drilling option can even be done or is permitted by the BLM.

Cheers