As the storm clouds gather over PCI there appears to be no shelter.
Investors should prepare themselves for the worst.
It would seem that any talks with PCI have been shelved and may even be called off altogether.
Quote....
"The Minister of Energy and Mines, Mr Chakib Khalil, said yesterday that foreign companies investing in oil fields in Algeria are free to abandon the projects they have got in Algeria, if they wanted to.
The Minister’s statement comes after some foreign companies announced their intention to withdraw from certain projects, especially after the hydrocarbons law was put into effect. They consider the hydrocarbons law amendment as an overload in relation to taxes. Anadarko, one of the major oil investment companies, expressed its dissatisfaction as to the amendments since it has to pay now up to 50%. Other foreign oil companies have expressed similar concerns."
PCI are dependant on having a partner in their licence in Algeria and it appears that they will not be getting one at least in the near future.
Meanwhile funds are slowly becoming depleted as cash is being spent on other projects as well as Algeria..It is a no win situation for PCI at present and this will be reflected in the share price.
A sub 12p SP is not too far away imo....a 10p support may be achieved..one to closely watch and suggest you keep your money safe by not investing at this stage is my view.
Will give you all the nod when a good buying opportunity arises.
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