Echidna
Saudis want $80 USD Oil Price($100+AUD)
https://www.bloomberg.com/news/arti...a-is-said-to-signal-ambition-for-80-oil-price
What Saudi wants, Saudi gets, as their Saudi Aramco (SA) company produces up to 10 million barrels per day and Bloomberg announced this weekend, SA's 6 month Net Income (Profit) of $34 Billion. Now they are doing an Initial Public Offering of 5% of SA and want a healthy oil price to get the best price for their stock. They currently have a 2 Trillion valuation of the company.
Brent Price is $72.58 USD today
Brent Price was $28.55 USD on Jan 18, 2016
Echidna is economic at $60 USD (per KAR Nov 17 AGM)
Worst instability in Middle East since Iraq War could disrupt oil supplies and increase price further $100+
https://www.reuters.com/article/us-...saudi-arabia-ramps-up-yemen-war-idUSKBN1H21HQ
Then "The Donald" et al send 110 more missiles into Syria which is full of Russians, Iranians, ISIS, Kurds, Turks, 2,000 US troops and some Syrians...Saudi has the third highest Defence Budget in the world.
Peru
KAR has pulled off another master stoke in Peru. Peruvians agreed to defer the licence commitments due to "lack of drilling rigs" to create a Force Majeure and add 22 months to the tem of the licence. In this period oil price has over doubled and cost of drilling has dropped in half, so KAR now get to drill BOTH of their seismically defined targets to see if they are the same as nearby field that has already produced 1.2 billion barrels.
KAR is trading less than cash. I love it.
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