Chinguetti and cpecan1I made a very big mistake during last...

Chinguetti and cpecan1

I made a very big mistake during last years drilling with the HDROs. I had some HDR but had sold most (at a good profit in July 2000) to buy HDRO's for the leverage. Then I bought more and more as the story goy better. Then Chinguetti 1 was a success and WPL took a position at $1.10. Fantastic ($500k profit - unrealised). Yes, but greed got me - if Courbine was a success the options would have been worth > $1m. I held the options through the Courbine drilling which should have been completed earlier than it was (but was delayed by restarts on both wells) giving the options more time to recover in the event of a duster.

The rest is history. I badly misread what the market would do in the event of failure - this is worth bearing in mind again now and when Banda is being drilled. I managed to get out with most of my money when HDR crashed after Courbine but none of the profit. BAD money management I know - that's what greed will do to you.

I learned 2 major lessons. Take part profits before the results are due (or after a big rise) and don't stay in options (likewise warrants) too close to expiry.

Just my experiences that I thought may be instructive.

Regards

H