Monday, December 19, 2005
Another routine Tuesday tomorrow
Tomorrow will bring another update from Dana and it's partners in the Faucon well offshore Mauritania. Today, Dana's shares advanced a handsome 4% in anticipation to close at their highest point since my purchase. Dana Petroleum first entered my portfolio in October 2003 at 223.75p. I never had the opportunity or the funds to increase my position. The buy price never retreated from that point. This has culminated today, just over two years later, in a share price of 1,020p - delivering a profit over four times my stake.
Tomorrow's announcement will provide the crucial information in deciding if the Faucon discovery will be commercially exploited. For this to happen, significant hydrocarbon showings at the target depth must be encountered, much greater than the finds higher up in the well. Anything short of this could see the shares retreat sharply from today's closing price. In this case, I'd have to move quickly to sell, depending on the prices being offered in the market at the time.
Some quick thinking could be called for tomorrow a.m.
The Artful Dodger
Tomorrow's announcement will provide the crucial information in deciding if the Faucon discovery will be commercially exploited. For this to happen, significant hydrocarbon showings at the target depth must be encountered, much greater than the finds higher up in the well. Anything short of this could see the shares retreat sharply from today's closing price. In this case, I'd have to move quickly to sell, depending on the prices being offered in the market at the time.
Some quick thinking could be called for tomorrow a.m.
The Artful Dodger
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