We are all a long way from the engine room, and i'm sure that...

We are all a long way from the engine room, and i'm sure that what at the surface may seem a prolonged delay with drill progress around IW conventional, was decided upon around many factors, not least being our balance sheet.

The cash credits that, back in March, we thought just might be settled with a small discount before this year's end look to have lagged a bit, with the constitutionality of the plan under challenge, and a decision around that now unlikely to be made before early November.

So with that outcome then (and still) unknown to us, the costs to fund that debt remain, at perhaps US150k/mth, and the US2.5m odd(?) net due to us after settling the Brevet debt, just might not be not available in time for any next winter programme? A programme that may well end up being sponsored by some Western outcome(s)... At least we are not seen to be going to a IW farm-out table cap in hand and threadbare.

ANS is now over US80, and pretty sure Alaska's budget balances around US71... That's ~10 bucks a barrel  saying Gov.Walker's bond bill will eventually pass, with the State surely able to squirrel away enough to fund the settlement.

So all looking good for the future on that front IMO. Now it's just around hoping we don't miss the boat with taking advantage of a robust POO. The fickleness and unpredictability that saw 60% ripped out of the price at the back half of 2014 will be fresh in the memories of many. And i'm sure DW and co are fully cognizant of the need to progress things as quickly as possible, and equally aware that any haste needs to be tempered against a potential to diminish shareholder's longer term accretive outcomes.

Anyhoo... Here's Brent. Looks well oversold to me, on a number of indicators.



Lots of longs open now with Hedge funds remaining bullish. They've all gotta close out tho, so perhaps quite a steep correction when that ball gets a-rollin'?

Just a couple of thoughts while we await our 'steep correction'.
GLA