Bad market generally, spec sector out of favour, uncertainty how good flow rates, and delays are all potent factors acting together synergistically to drive down the SP.
The unknown is whether technical selling/margin selling are having any impact. I doubt too many large positions are being liquidated as I haven't seen a change of interest notice in recent times.
I suspect if/when a reversal occurs - perhaps on news of commenced production next month, I think it will rapidly reach 80-90c or above if flows are reasonable (note this is pre-injection so they may not be that good). If they are good pre-injection then much of the fear will be allayed and we could get a great SP response.
If on the other hand they are not so good then the SP may fall to 35-40c while people wait to see what gas injection does to flows.
IMO they would have been conducted long flow tests on earlier wells prior to committing to more drilling if the company had any major concerns about flow rates. I think this is a great opportunity to buy as this will likely head well north of a dollar within six months.
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