Net Production back to 1450 BOEPDBefore the unfortunate fire of course, production was up to this level again as per the MD&A, which was published only a few weeks after the May 5 update. As EE says, we need to expect wide fluctuations in actual production at any point in time during these early days, the impacts of which will minimize as the play moves forward.
From what I can see, EE is exploiting this play according to plan. They are proceeding in a logical manner, and are not drawing uncessessary industry attention to their success at this stage. We shot the siesmic and bought more land. We will now test a few locations which show up well on the seismic. If these do not pan out, its just back to the 'bread and butter' locations we have been drilling. In the latest MD&A, they reitterate the 3000 boepd target, and so believe it was still doable, until recent unfortunate events of course. This is quality boepd production with high $50+ netbacks and will attrack premium prices. We can anticipate a share price in the $3.00-4.00 range.
I wouldn't concern myself too much with old WCW. He has become negatively attached to this situation in an emotional way. And so, you will need to get used to his occassional rants, which will accelerate and get worse as EE progresses. To our advantage, WCW does bring up the occassional point which we should consider, analyse the potential risk of, and reassess our projections. And so, this is very useful, as the best decisions are the most informed decisions after a careful analysis of both supporting and conflicting evidence. So, within his rants you will find the odd concern he goes on and on about that you should follow-up on and ensure you understand the risk of. if any.Its too bad WCW has had such a bad prior experience with EE, and his extreme negative emotional bias is the result of some personal emotional attachment he still has to EE, perhaps he was fired from EE, perhaps his jaded lover works for them, perhaps he lost money on the EE stock before and somehow blames them......whatever the reason, think of his rants as you would those coming from a jealous ex, never wanting his ex-spouse to move on and develop a nice life to enjoy. The jealous ex always plays the 'she's so much better than you ever were' card and the 'I'm so much happier now without you' card, much as WCW does go on and on about CVU. Regardless, I'm sure CVU has some flaws also, that WCW will find out about soon enough !
For those shareholderrs who are patient, I think EE will provide a handsome return.