GulfSlope Energy Inc (GSPE)

[ReggieIV]

This is what I was alluding to in my post awhile back regarding the price drop in oil. https://www.msn.com/en-us/money/markets/oil-prices-crash-to-24-a-barrel-falling-below-bottom-of-last-bust-creating-supply-crisis/ar-BB11mEjZ?ocid=hplocalnews

I am long in this stock and have been for a few years now. It gives me heartburn to see what has and is happening right now. I’ll admit it. The combination of Russia and Saudi Arabia having a “price/controlling interest war” over oil among all the other producing oil nations is not good. This, with the virus spread and near continuous stream regarding the virus is going to depress stocks and the respective markets for quite some time. With respect to the oil industry, the only folks who are going to make out on this and that’s a big “if” are the refiners. However, at these prices and current conditions, there is a glut in supply and therefore, they aren’t going to be making too much profit overall.

It is indeed uncharted waters we are in. As for GSPE, in my opinion, they are caught in a rough place. To drill or not to drill? I don’t think there is much choice and if they drill it is under less than desirable conditions market wise. The profit margin is dropping with every drop in the price of oil which is being heavily influenced by the aforementioned folks.

It will be quite some time before the oil markets and well quite frankly the markets themselves become stabilized. This is only going to come if there is a breakthrough in medicine, the virus contagion is ceased or slowed down significantly and if the oil producing nations stop or slow down their oil “war”.

Will GSPE survive all this? That’s a very tough order for any company to do as some of the largest industries are already looking for financial lifelines from their respective governments. I suppose DELEK would be GSPE’s and let’s hope this partnership maintains.