GulfSlope Energy Inc (GSPE)

[MktMvn]

Oil today is at $40, a pittance historically. But GulfSlope can make money at that level. The big headwind is going to be the inevitable move away from oil into renewables. GOM producers have until 2050 to get their oil out of the ground. That again would be ok from Gulfslope’s perspective, because a field like Tau would be largely depleted by that time. Covid has hit oil demand so hard that a return to normal demand with the advent of a vaccine should produce quite a price increase. If GulfSlope is ready to offer Tau as the price increase is making some headlines, there might be some irrational exuberance that would help them get partners. They were very actively marketed Tau before the virus shutdown, but with no takers. It will take a renewed perspective of oil as a good way to make money to change that. I think Seitz is down to his last chance. If we get lucky and oil becomes hot again, Tau could get drilled and GulfSlope could have a future. It could be too late, if oil is perceived as a dinosaur smokestack industry with no future. It will be worth watching industry news as we come out of the virus crisis to see if there is one more boom left in oil before the long decline begins.