Ships move, Vaalco just sits in one place treading water. No known expansion plan, leases that are not of interest at the current price for oil and no alliances with others to jointly develop prospects, maybe because there isn't sufficient talent in company. One wonders why you need any management for such a situation. Perhaps cutting back to a single production department would make some temporary sense.
Could try suing to get the multimillion dollar hunting lease or its monetary equivalent on basis it was never divulged and carried as another asset on balance sheet but available only to management
Agreed. Why keep Schiller for any reason. And are they keeping their multimillion dollar hunting properties in South Texas? Or are they being shuffled off to management and friends for a song? How can any bankruptcy judge let Schiller stay on and collect a big salary? Must be some illegal activity he's could be guilty of.
Guessing management has its salaries protected through and after BK. A real hosing if that is the case. CEO is only out for himself, never has been a respected manager.
With no prospects for profitable investment, no dividend, little borrowing capacity, and little earnings
its difficult to see much value for EGY today. What discount rate of what amount of future cash flows justify the current share price?
This sorta looks like a ponzi scheme. Management needs to sell before the curtain is raised and
the anticipated revenues are show to be a mirage, repeated with every sale. Try looking at the numbers
that would be produced if you stopped selling.
Thanks for the reply. Looks like they might need to go into hibernation, reduce staff to minimum
and wait for spring.
Are there any of EGY's projects which make economic sense to develop at $40/bbl oil?
Does that mean the Angola lease expires? EA? What else? Price kills H2S processors.
How about new down hole pumps?
What are the real prospects?
Can't see a $10 upward movement in oil in next few months, or even next year. Even with a pick up in China, which seems a bit doubtful, there is enough extra oil in ships, storage, ground
to satisfy China and any other pick up. The hope has to be for a cut back in production, freely or forced, and that also is unlikely.
Even Russia needs the revenues as SA can't spend/borrow
for long without pain. It looks like a $52/bbl price for 2020 isn't
too far off track, possibly with most of the increase in the late teens.Bodes badly for EXXI.