Wheels come off Chariot amid market rumours
Chariot Oil and Gas (CHAR) on Tuesday released a statement noting the fall in its share price. Shares in the company plunged almost 20% in morning trading, amid rumours that there was profit taking and news of a duster on Nimrod was imminent.
This resulted in the Africa-focused oil and gas company reminding investors that, as announced on 27 July, the drilling of the Kabeljou exploration well on the Nimrod prospect, offshore Namibia, had commenced and operations were continuing. "Once the well has reached target depth and the results have been logged a further announcement will be made," the company said.
INVESTOR REACTION
"No news is good news," commented Interactive Investor user ?SiFiUK?, adding that there was "money for the big boys to be made in trading the rumour mill in the meantime".
User ?sphinx50? pointed out that while the Chariot share price had plunged, BP's (BP.) shares price was "virtually steady".
"I know Nimrod is far more significant to us than BP but surely if there was a leak (duster), it would have some effect on BP price ? billions of barrels are hardly insignificant even to them," the user pointed out.
User ?borgo22? reminded investors that this was a high-risk drill, saying: "This is only for the brave. Good luck to holders and I hope no more games are played, although I doubt this. The share price at the end of it will be 40p or a few quid."
- iii.co.uk
This resulted in the Africa-focused oil and gas company reminding investors that, as announced on 27 July, the drilling of the Kabeljou exploration well on the Nimrod prospect, offshore Namibia, had commenced and operations were continuing. "Once the well has reached target depth and the results have been logged a further announcement will be made," the company said.
INVESTOR REACTION
"No news is good news," commented Interactive Investor user ?SiFiUK?, adding that there was "money for the big boys to be made in trading the rumour mill in the meantime".
User ?sphinx50? pointed out that while the Chariot share price had plunged, BP's (BP.) shares price was "virtually steady".
"I know Nimrod is far more significant to us than BP but surely if there was a leak (duster), it would have some effect on BP price ? billions of barrels are hardly insignificant even to them," the user pointed out.
User ?borgo22? reminded investors that this was a high-risk drill, saying: "This is only for the brave. Good luck to holders and I hope no more games are played, although I doubt this. The share price at the end of it will be 40p or a few quid."
- iii.co.uk
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