The reality is that the POO imploded last time when AKK management were on the point of borrowing $40m to develop the field. In the context of a fall from $100 - $20 per barrel many banks and entities have fallen by the wayside. Management have done a pretty fair job of keeping the entity afloat in the meantime and now as FPL are again in the process of developing and monetising the resource.
That is the nature of the market, not AKK / FPL managements fault.
Despite the jaundiced view of those who were burned the first time around, and I was in there with the best of them, these guys have stuck it out and are still working on delivering a return to supportive shareholders. I am sure that in the fullness of time some bright spark PHD candidate at Harvard will write a thesis on their work and complement management on their achievement, should it all come good. Though plenty of risks yet, we are getting another throw of the dice and that's all you can ask for in the hugely speculative part of the O&G sector.
Good Luck
Wazz
FPL Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
