I am sorry to come to this conclusion but I no longer see any scenario under which ENG could succeed at this point. Several factors are at play and unfortunetely they tend to work against each other. It is a sad game of chicken and eggs and what comes first.
Impossible at these levels. ENG would need to issue around 70 millions shares at 25 cents to drill on their own. If there are warrants the fully diluted float would get to 200 million shares. First of all nobody would finance in those conditions. Retail has no longer any interest so no volume, so the sp will either drift down or stay there. Only delusional dreamers like me are still hanging in there, trapped with a big position. In order for the sp to rise, they need to have news, like financing. without financing, there won't be news. Without news financing is impossible because the sp will not go up. Catch 22. No action in the adjacent blocks recently, and the older action is unconclusive. No, buzz, no interest.
Still, but the terms of the JV will get harder on ENG after each passing day. I see a minimum of 40% of Lotshi right now, 60% in 6 months, may be 10 carried interest in a year. The main obstacle to any deal is Jeff's ego, which will take a bigger hit with every subsequent increment. I feel Jeff will only agree to the terms he will never get, the ones he wants. So JV is most likely out.
These two were for Lotshi. Now let's look at 1711. ENG has the misfortune of having drilled and not hit a producing well. Subsequently every one else failed. So now it is time to wait for HRT, and wait for anybody else to hit. We could hit in 2027. By then the block will be long gone, and so will ENG . If we depend on somebody else's success, we might as well pack. I do not believe for one second that HRT will hit anything. So no help from that corner. Majors seem more interested in going for the pristine blocks, with no history of failure. 1711 might have exciting geology, but not exciting enough. After all big players moved in, and even with a lot more info that any other blocks, they are not buying. Unless the info is not good. Also possible.
Under these conditions, what exactly is the Palacios dog and pony show for? As I have said before, on paper it looks good, but only on paper. The unescapable conclusion is that the people who make decisions with more knowledge and information that we have are not buying the story, or they do not want to deal with whoever is selling them the story. Something is not working somewhere, and that something is what matters. I really wish they would just sell this, at any price, so we could move on. I would be happy with book value or 35 cents a share. This has gone on for way too long, and the huge venture market bloodbath is coming our way soon. Cash is low, interest is low, and positive outcomes next to impossible under the current circumstances. We need to put ourselves in the head of the people supposed to buy this. They are rejecting either the product, the salesman, or both. The conclusion for us is exactly the same. Oblivion. WWe need a miracle, and frankly I have no idea what that would be. It is not smart in life to depend on a miracle.