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13/08/17
10:18
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Originally posted by cmonaussie
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Junior
IMO you have a decision to make - either FPL is an Exploration company with minimal production (so E&p company), a Production company with minimal exploration (so an e&P) but what it is not is an E&P company (the 4th option is e&p company of course). You flip and flop between them. As far as BigK is concerned, he is (rightly) just opining the strengths what got you here.
You seek to have little idea how the investment market actually works for the "P" part and how to value production to determine a stock's value based upon the capital needed to develop production - of that I am certain. And do not attempt to hide in the cloak of "junior explorer in the development phase) - Klingon or Romulan?
Whether you have any idea how the "E" part works is debatable - but let me just say if it was only about OOIP or just proving Resources then the question would be why FPL and not many other choices with Resource bases in the Billions of Barrels of oil (like say 88E - which I do not own).
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In response to your last paragraph the answer is simple. Look at the upside in FPL capped at only $5.5 million as opposed to 88E capped at $140 million. FPL is dirt cheap.