I'm just an observer. Trying to see things the way they are. I don't wish to up ramp or down ramp. For you who are up ramp or down ramp protectors please come out of your perception boxes and try to observe things the way they are.
LKO has been stuck between 1.1 and 1.2 cents for at least a couple of days now. What's interesting to me is that there is a strengthening buyer volume (bidding volume compared to selling volume on the 1.2 cent side. Is somebody just slowly topping up at this price?
So based on some of the discussion on other threads one might ask why on earth would anyone want to do this? I had no idea either, so I phoned the company and talked to the Geologist lady that features on the clips from a recent Conference.
The technology that has enabled the placement of the top of the dome (the next drill hole)is truly significant. Some ask why don't they use the successful fracture technique on all their other wells? They learn't from Wombat 3 that the strength and frequency of the fracturing pule was too high and hence the sand sized fracture material blocking flow. So, I got my answer to why the priority is to drill at the top of the dome and use fracture techniques that will allow flow. In other words, what we've seen so far is nothing. $$'s better spent on top well, now that they have improved the fracturing technique with Wombat 2. They now have an idea of the best fracturing technique for the Gippsland basin.
I asked her what happens if the rights issue is not taken up? She didn't seem too worried. Seemed to infer that there are back up plans. This company has been around for sixty years and not about to stop now.
As opposed to conventional oil and gas wells, tight gas wells experience slowly increasing volume over time. There is also more than one option for selling to market. Oil and gas tankers are definitely an option in the early phase.
DYOR but I've decided to pull my sell order. I might be wrong but maybe I'm right. May we all be happy living with our decisions.
LKO Price at posting:
1.2¢ Sentiment: LT Buy Disclosure: Held
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