Just when I thought some normality was returning, it was the usual down hill story for AIM commodity stocks.
Encore oil fell a staggering 22 percent to 84p after a further update from the fringes of the Cladhan North Sea field. Given the 210/30a-4z appraisal well was only 16 percent owned by Encore and was intended to test the deeper extremity of the previous well (which was successful) a fall of this degree is very over done.But this sums up owning an AIM oil stock at the moment. Any minor disappointment and the price plummets.
The other major oil shares in my portfolio didn't fair much better. Xcite was down nearly 5 percent to 306p, below the level it was pre flow test in November 2010. Rockhopper dived another 6.5 percent to 214p, below the 14/10-4 appraisal well result.
The depth and speed of the fall has taken me by surprise. There seems to be no respite from the declines as the big investors abandon their small cap commodity investments. This is not enjoyable. Three weeks of falls and no stop in sight. There looks to be plenty of bargains but no buyers.