While I do agree with many of the holders in that things aren't looking particularly positive, the context of all of this is still important. Seeing who can shout "sack the board" loudest on HC achieves absolutely nothing. At the very least, if you have such a grievance, you should take it up with the board directly rather than on here, because you're just wasting your time otherwise.
But personally, I think that either way, a sacking of, and replacement of the board comes with a whole new suite of costs which actually just further inhibits the ability to drill down to the well's TD. So in reality all you'd be doing is biting the only chance of a hand that might feed you. Sure, the hand is very spiky, smells like sheet, and could be poisonous, but let's just say removing the hand 700m from TD isn't a great idea.
And truth be told, no one said that you had to participate in the new issue anyway...
Fact is that it may be that as holders, we need to ride another year or even more of these sorts of fluctuations in the narrative that come as part and parcel of not only normal oil and gas exploration, but the frontier version of it!
I think one of the silver linings at the moment is in the fact that the contractor is forgiving 1.66 mil of invoices for just a 2% royalty stake. Given the size of the drilling contractor as a company, that represents a significant risk for them, and one they wouldn't have taken lightly - so I'm inclined to believe they think there's something down there. I'm not saying it's a cause for celebration, but I think it is worth noting.
At the end of the day, you can deep fry and sugar coat a turd and it will still be that, a turd. And we may well be heading down that path. But I for one am going to tuck this away in the bottom drawer. In a year's time I'm either going to be very pleasantly surprised, or my very small stake will be gone.
To those with real big exposure? I can't obviously offer any advice (not least because I'm unqualified), but I would encourage you to do your own research in to the kinds of stake people tend to recommend in relative terms to one's portfolio, that should be devoted to frontier oil explorers.
Good luck to all holders.
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