Once China ends lock downs...and they will eventually.
You can forget about oil being under $100 for a long time.
Again, FDR is in the sweet spot for farm-out deals.
Finder isn't about drilling and finding oil. That's a year plus away.
It's about farm-out deals.
IMO, each one could be worth $10M-15M USD each. I've heard some think more for the better leases.
FRD has 9 of them all on prime space.
Their track record and drilling data says they'll have a 30% success rate.
That's 3 wells hitting.
FDR wouldn't pay for any drilling but, own 10-20% of each one.
That's a bloody good business model.
Do the maths, read up on the story and figure it out yourself.
FDR could be a monster bagger.
https://www.bloomberg.com/news/articles/2022-11-01/oil-extends-drop-as-economic-slowdown-concerns-hang-over-market
Oil Rises, Bolstered by Speculation of China’s Economy Reopening
October 31, 2022 at 8:08 PM EDTUpdated onNovember 1, 2022 at 3:12 PM EDT
“Potential changes to China’s Covid policy -- real or speculated -- will create volatility in crude trading,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. But she cautioned that if “investors did think that China was changing their COVID policy, the move higher would be much more significant.”
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