No doubt AEX will have a correction at some point, but should things go well in North Korea which very much looks likely i wouldnt be surprised to see a share price of 2-300p in a year or twos time.
DPRK's knowledge of international oil market has been limited therefore they have signed a PSA agreement with AMINEX to provide assitance and skill sets needed in the oil market so DPRK dont get pissed on by the big hot shots. The agreement is a signing of a nine-year production-sharing agreement to explore and develop 66,000 square kilometers (25,000 square miles) of North Korean territory. The agreement covers areas in the Yellow Sea's West Korea Bay and in the Sea of Japan as well as onshore.
This PSA says AMINEX has first call on acreage, in other words they get to choose the best parts which they believe have the most oil! If they choose not to go ahead and develop certain areas [this will be inevitable given AMINEX's small size] they will get 10% carry and 2.5% royalty on any oil produced by a third party.
Read this bloomberg link, sums up the story nicely. I will give you more information if your interested.
Ipath Etn Crude Oil stock quotes
Ipath Etn Crude Oil stock charts
Follow this thread
