re: Ann: OXX: Grant of PEP 487 over the Derby...
Hi Jaybay,
I hope you are right on your sentiment.
From my point of view, this appears to be Lind at work again. (several days on and no change of substantial holders notice).
The fall in the price today i believe is due to Lind's broker going in thinking that OXX announcement will attract some buyers, but unexpectedly it received negative response due to the "18 months delay" quote without context. People will also notice a large holding in the middle with little explanations.
This is a trend consistent with the standby facility that OBL signup for. Lind and/or associates will apply a ceiling to allow them to dump the shares and apply a floor to prevent the share price from crashing. The floor could be the Gentleman's agreement you described and also for their own benefit to maintain a higher VWAP for the next issue.
It seems to me the collar for OBL for the duration of Lind's involvement will be between 0.017 and 0.02. The formal grant and the resolution of ownership may push it up a bit, but it is unlikely to last.
If anyone would like to see this trend at work, checkout FAS trading pattern and 3B announcement.
I have read Rivermore's post on OXX (thank you for the poster who put it up). I think even if OBL ends up with just 10% of the pie, it is still 10% of a much bigger pie than whatever we have now. So i still view it as a plus.
For majors to farm in, i think derby is likely to need several proven wells. Majors are more concerned with risk management than going in cheap to unproven potentials. So OBL is likely to need a lot of money to get there.
DYOR
OBL Price at posting:
1.7¢ Sentiment: None Disclosure: Held
