"The recent unrest in Thibaw, following power shifts in the military government there, looks bad for US Independent Shiloh,” says respected analyst Chester Culbertson. “It’s widely rumored in the oil and gas industry that Shiloh was close to a deal with the Thibaw Government and the Chinese State company EnCathay, for development of gas reserves there. Until things calm down with teh prospect of longer term resolution, it’s hard to imagine Shiloh committing to a major investment there.”
Shiloh’s misfortunes are not confined to Thibaw. In a separate development it appears to be suffering a significant cut in production from the Dorothy field, in the UK’s North Sea, which is operated on behalf of a Shiloh/Wordsworth joint venture by Britain’s Wordsworth Energy.
Shiloh’s shares closed at 6.78
“Shiloh may well be regretting ever cooperating with Wordsworth,” said noted commentator Stephen Botts yesterday. “Production losses resulting from the recent accident on Dorothy are hitting both companies. At this rate it’s hard to imagine them getting into further joint ventures elsewhere. And Wordsworth’s profits will be down badly for the year unless they can get Dorothy fully back on line soon. So far we’ve no idea when that can be expected.”
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