GREY:PTGBF - Post by User
Post by
dowdon Jun 13, 2008 10:44pm
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Post# 15185049
spoke w/ Jason James
spoke w/ Jason JamesThey are doing work on the Texas wells this week and he said that he hopes to have an operational update on Texas in a few weeks.
I did not know that we have 5 wells in the Palo Duro. I always thought it was 4. He said that no one including Bankers has really made an effort to drill and frac the shales in the Palo Duro(can't remember which formation he was talking about) They are looking into the possibility of stimulating some of the formations in the well(s) that had oil shows. I think this is what they are working on this week.
The Mac-77 still needs work and it won't be tied in anytime soon.
I suggested and got the feeling that our acreage in the Palo Duro needs to be farmed out. We just do not have the 5-10 million (my estimate) to properly evaluate the lands. There seems to be a lot going on with Bankers and others exploring strategic alternatives. Maybe something will happen on that front this year is my guess.
One thing that keeps me from selling (although I am very tempted and have sold a little) is that the upside is enormous if anyone can get a well to flow. The gasOGIP is there it is just a question of someone commiting the cash. This seems to be the only shale basin play that has not been worked. With gas prices high now and larger comopanies flush with cash it sems logical that one of them will take a position and drill a few wells, but we will have to wait and see. Oil companies are scrambling to assemble land packages in shale basin plays but have tso far bypassed the palo Duro. Jason thought this was because all the land is tied up (by compnaies with no cash to drill) If anyone can drill and frac a well anywhere in the palo duro then I think we would pop up to $1.50 very quickly.
That is what keeps me from dumping at 40 cents. Many times I have sold a stock out of frustration because i hated it only to find out I sold at the low and the correct decision would have been to hold my nose and buy more instead of selling. I have the feeling that this is the case here, but I have been wrong with this stock before.