Risk and reward. Heres the thing. If this Chinese deal falls over the sp will collapse and more than likely the company goes belly up. You lose everything! 100% loss. If the deal goes through you end up with a company with only 40% of its former potential. You also end up with a company forced - by their Chinese masters - to kick off a brand new drilling campaign with all the associated risk that this entails. (I'll let you in on a little secret - offshore oil drilling is risky! Ask Dixey! He knows all about that!! Ha ha ha......) Unfortunately you have the same bunch of proven losers running AED who stuffed it up the first time around. Why do you think the instios won't touch this with a barge pole? Because management have done such a sterling job??? Very, very sad. If Dixey had prioritised technical expertise instead of cash when looking for a partner (although I wonder if anybody who knew WTF was involved in resurrecting this company was interested anyway) I would have seriously considered buying back in. Imagine if they teamed up with somebody like Apache. The Chinese! Besides a pile of "dumb" cash what do they bring to the table? Wheres their technical know-how and expertise. The Chinese inspire no confidence in revamping the current two production wells (and I use the word production very loosely!) Drilling new wells means bucket loads of risk regardless of what rubbish the spruikers on HC try to spin. I'd say this company is back to where it was 12 to 18 months ago (minus 60% of the action) and every cent of the much discussed $350M will be needed. My guess is this time next year that money will be all gone spent on new drilling. If you must punt AED I'd suggest risking only money you can afford to lose. And you should be prepared to lose the lot! PS Where are all those d/heads who were tipping $3, $4 and unbelievably $5 during the recent suspension a month ago?
AED Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
