There will be a very complete report on Stella next weekManagement stated earlier that they would be providing a quarterly report on GSA. To that end, I have been told that they will be providing a substantial report out on GSA progress on the `13th. The only issue with Ithaca is that they need to replace reserves particularly once production is 25,000 boepd. I calculate the RLI at about 7.9 which is a little on the low side. I would be nice if they could have gotten a nice reserves boost on the Norvarg appraisal. As RBC indicates there are more wells to be drilled this fall and hopefully they well get some reserves boost through the drill bit as opposed to buying. Finding bargins is what Ithaca needs to do as a developer rather than an explorer.
One needs to consider however that over the next three years (including this one) they will be producing around a billion dollars of free cash flow (if all goes well with GSA for mid 14 start up and commodity prices hold). That is enough to eliminate the debt and give them a very nice booty to go buy at least a 10,000 boe producer with 25 mmboe of reserves as a nice bolt on with all cash and debt and no need to raise cash through equity issue.