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W/C 8 Dec 14, page-4

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snakeeyes28

632 Posts.

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17/12/14

03:32

Post #: 14471896
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Originally posted by bowral ↑

http://peakoilbarrel.com/debt-oil-price-bakken-red-queen/

It should be clear that
1. lower oil prices will see the PDP value of reserves fall (as expected)
2. the "close-out" of derivatives will be someone "wins" and someone "looses" ......
3. lots of "forecast wells" WONT get drilled (ie production from USA "shale miracle" will start to fall in 6-9 months time....
4. Banks will be much less willing to lend ..........

Given the quantum of the fall in oil prices - there is (very) likley to be "blow-ups" in the industry .......

it also suggests "there is NO FLOOR" ........

IMHO - this is a liquadation event - and the only "safe" way to play - is to stand aside, and let the carnage unfold ....let the dust settle .......and if/when a company raises capital - you will be in a much safer place to invest .....just my opinion !

Also to add to that,this makes eor much more risky and harder to get financing deals imo

That said,it only takes a war in the middle east to turn oil prices around,but in the short term financing will become very hard for minnows like Eor

Spec oilers atm are as attractive as a bobcat driver from Karajongs head,not very!

Expand

Interesting article - particularly re: fraccing in Asia - i think i know of one company heading in this direction

http://english.alarabiya.net/en/vie...clining-oil-prices-OPEC-vs-future-Shale-.html

EOR Price at posting: 1.1¢ Sentiment: Buy Disclosure: Held
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W/C 8 Dec 14, page-4

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