re: market must like it
Interesting thoughts re acculmulation. I do believe if maintains current price range Index funds will have to jump in. I firmly believe this will happen.
The share price basically added $1 for Beibu gulf. This is approximate valuation of 200m. A conservative in situ price for reserves is $20, thus mkt is guessing ROCs share of find is 10m barrels. Fully diluted [after china buys back into field] ROC share is 20%. So the market is guessing 50mb recoverable.
It has already been stated that the discovery is in the 'many tens of millions'. This was before the sidetrack drilling - which appears to be taking an inordinate amount of time. The timing issue could be because of technical issues...or....there is a big resevior and they have not hit the water contact on the incline.
I believe the second case scenario - as ROC is in the habit of keeping mkt informed where unforseen drilling delay occurs due to weather or other matters. There has been no such announcment so must presume there is a nice long stretch of oil bearing sands being drilled.
There is plent of upside yet methinks.
ROC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
