Originally Posted by
Rabbi
Obviously the farmin decision was factored in ages ago, and with BHP vacillating the SP subsequently drifted. Since the prospect isn't gong to be drilled until 2012 some speculators are taking the opportunity to get out while the goings good. Investor briefings aren't perceived by the market as anything but oil company spin about their future progamme, which invariably gets pushed out into the everlasting future.
Everyone got excited over CSG about two years ago, and all the CSG juniors could do was over promise the market about how much reserve they could prove up. Then when they couldn't stick to programme, mainly due to weather constraints investors got sick of waiting and headed for the hills.
Galoc phase 2 might see some appreciation but it will still take time to recover costs.
The rumours seems to be always better than the news in this game. When OEL were in
Argentina the SP was over 30 cents just on speculation of a huge prospect.