HI Fisherwoman will be gone soon but still a bit more time - not six months yet
Actually, if you do the calculations it is good news. Not astonishing but good solid news
1. Comanche. This well looks like paying back in under 1 year and does not appear to be fading like the horizontals. Oil has only been flowing for 3 days and is increasing. Either way it looks like producing about 50boepd or 5 boepd net for OTE. That means about $150,000 per year to OTE and the well only cost $80,000. If they can drill 20 of those it will be good solid news.
2. Yemen. This looks like a a good deal to me. Generally, Japanese are leaving because they do not want to be associated the conflict there. This is opening up good buy opportunities and this could be one. I have no idea of the chances but the other partners are sticking with it and it could be 10-fold OTEs current revenue if it comes off.
So IMO it is 1. good solid news and 2. chance of an upside with plans for adding experience to management.
Eventually OTE will come off, we may not have much left by then but if you keep your eyes and mind open you may get a good buy opportunity. Just need to get the timing right.
Rumot
OTE Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
