Replies to post #7308 on Addax Petroleum (fka AXC)

[oil-cowboy]

I love how every piece of industry news is completely on the other board lol. This is huge for us.

"At the prevailing prices, Kenya would still be making a profit if it were already producing and selling crude oil in the international markets. "This is important news that suggests Kenya's oil is viable even at current low global prices albeit at a razor thin profit margin," said Eric Musau, a research analyst at Standard Investment Bank."

[Julius Erving]

Troy, tell Midtier:

Oil Price Rise To $50 Likely By Q4 2016 As Market Fundamentals Have Not Materially Altered

http://www.forbes.com/sites/gauravsharma/2016/01/22/oil-price-rise-to-50-by-q4-2016-likely-as-market-fundamentals-have-not-materially-altered/#3292f072550c

"As further volatility for the next six months is inevitable, we should not lose sight of one crucial factor in the ongoing melee – oil market fundamentals have not materially altered."

For most non-OPEC plays $60 per barrel remains the optimum price (see chart) while some unconventional plays need a three-figure price. An almighty push by the industry towards operational efficiencies when oil fell to $50 per barrel kept many going, but most are not designed to cope with a drop to $30; a level that is hurting even Middle Eastern producers with far lower labor costs.

And Kenya can produce for $25,- as your article said.

Just think of the implications that can have in the near future, if oil goes up to above $50,-

GO CEPSA.