re: is it good buying now ... .55 ...? Hi folks,
Many thanks to Darbox, for acknowledging our
stance on AYO, during the WR-5 fiasco .....
OMR is quite correct in his assessment of the well
costs outweighing any production benefits, at
Whicher Range ..... deep wells do not come cheap,
especially when the flow cannot be guaranteed and
the past record in the field is so poor ..... 5 wells
for zero return.
If there's a profitable future for AYO at Whicher
Range, it may well be as a power generator .....
using the small gas flows that can be guaranteed,
to feed gas turbine generators ..... electricity from
this source, can then be readily hooked into the
local power grid and sold.
This solution has been suggested many times, but
totally ignore by AYO in its quest to unlock the holy
grail of fraccing methods, at Whicher Range .... so
far, a total waste of resources.
-----
With Barton selling down his stake in AYO, one
would expect that the AYO price will be under more
downward pressure .... at least, until he reaches
the 5% threshold, where he is no longer required
to disclose his interests.
-----
Also, as per OMR, future gas sales will have to
improve markedly and soon to keep traders
interested in AYO, in the short-term.
Gas-in-the-ground does not pay the bills ... they
can go on exploring and building reserves, but
until they make some more sales, the market
will be "on hold".
Another serious competitor has had the finance
for its Caspian Sea-Turkey oil pipeline finalised .....
this huge pipeline is already completed, in some
areas:
http://www.rigzone.com/news/article.asp?a_id=10769
What the article fails to mention is another pipeline,
over a similar route for GAS ..... also coming into
Turkey ..... both pipelines expected to be flowing
gas and oil, in 2005.
When this was mentioned to AYO a couple of years
ago, they poured water on the whole project ...
saying that it will never happen ..... well AYO, it
now looks like you will have a very real competitor
in Turkey, in the future.
-----
There's some support around 60 cents, but this
may be from a SOLE broker making a buy
recommendation.
From this end, would like to see AYO test the 55
level, with some high volume to indicate some
panic selling ..... and, right where it start the
last rally on 12032003.
In the absence of any good news, that level should
achievable, although we may get a technical bounce
soon, as many techie's indicators are becoming
quite oversold.
hope this helps some
yogi
P.S. ..... no position in AYO, at present.
AYO
unknown
