Agree, selling 10% of Dorado was the game changer for CVN, suddenly financially doable, and crucially we keep 20% of the area which seems to have most of the exploration upside but isn’t likely part of the initial capex.
Adrian appears to me to have struck as good a balance as could realistically be hoped for at this stage, between reducing/funding capex and retaining the untested upside. And he got a fair price, perhaps not a great price.
The market reaction entirely perplexes me, but the market often does strange things, and sometimes it’s right but also often dead wrong. Smells of capitulation to me, whether from a single party or just a likeminded herd.
I guess I am just dug in for a longer ride than I really want- but who would sell at this price?
Sure,if we’d had a really strong sp I might have preferred a CR and retention of the full 20%, but since the last CR it became clear that the fairly priced CR window had closed.
EL
CVN Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
(20min delay)