RE: 2 questions REDO/Dog & StockyNo, I cannot judge the value of the property with the information we have been given to date. I'm sure they could manage to get proven undeveloped reserves and probable reserves at this point. But don't start jumping up and down about the potential 2P reserves. Ultimately, it's about cash flow and with what they have announced to date, they will not have squat for cash flow.
The other point is, I would not be swallowing the "potential" of testing the other zones. You have to be practical here, what zone do you think they would test first and produce from, answer...your best zone.
The problem here has been well articulated by, Dog, Red, and Kenbull. It's about one word, credibility. There have been far too many people saying things that could only come from management that insinuated that:
1. The oil well results were above and beyond the company's expectations.
2. They were in the process of building a battery. ( insinuates oil production ).
3. They were ready to drill a 3rd well
4. The Red Mountain results exceed AM Gold
Oh, and I forgot, the reason we have not seen the drilling results from Louisiana is because they were acquiring more leases. Not sure whatever happened to that.
As I said, no one can guarantee results, but it is quite another matter to mislead the shareholders who do speak to management. From what I can see, this is the case, 250 mcf/d is not going to make anyone money, that is about 21 boe/d and REV gets half of that. It's gas! Not oil, as advertised, as Dog & Red have pointed out. Now, as far as the potential of either play, I have no idea whether or not there is merit in either the oil, or the mining property. You would need a lot more technical information than we have to make that assumption, but results to date do not bode well for the future values. I wish that were not the case, as I'm sure every else including management does as well. Even Red, Dog and Kenbull have to ask themselves why would management raise the money to do all this knowing they would come up empty. Red, I think you are a bit conspiratorial in your views, and who knows, you may be right. I hope for all our sakes the Red Mountain results that are WAY over due prove differently, but I am not holding my breath.