'jdeo1969' pid='50616' datel Wrote:
'admin' pid='50613' datel Wrote:I think we can safely say that most of the underperformance on that time span is produced by the market reaction to the deal with Total. Now, while perhaps the $/Mcf was lower than what was expected, there is still the possibility that this will turn out ok: - Appraisal of E/A. I remember the stories about people arguing Total thought there was only 5 Tcf. - Additional finds. Yes, the drilling is excruciatingly slow, but sooner or later they will get there.. Add in the uncertainty caused by OSH's claims and it's no terrible surprise..
"There is still the possibility that this will turn out ok" is not terribly reassuring.
To be completely fair, since the awful rollout of the deal, OSH has essentially validated what they believe is there paying real dollars for their share. SO even with that Hession has managed to allow the share price to drift to levels not seen since the massive sell off after the deal was announced with the market assuming that there was roughly 30 to 40% less gas than we now can realistically valuate. There is something wrong with that picture in my opinion.
What OSH has "essentially validated" is what Total is paying, but they have not supported or "validated" the GLJ estimates. It's not hard to agree "there is something wrong with that picture", i.e. the "share price". However, is there something you think is behind that besides the problems and extended delays in completing the exploration wells, the uncertainty of the dispute with OSH, and the recent negative pressure from the market, oil prices, and energy stocks in general accompanied by short manipulation?