Timely Economics I agree with the previous posts that we have a structural change in the global world - but in the meantime what does this mean for Blackbird - i.e.: how does a company like this withstand the pricing pressures that are clearly evident.
I was reading some research on BBI yesterday evening and here are some key takeaways that I saw that make me very comfortable with where they are and where they are going...
A look at the current economics being pegged on a section is $24 mm this is based on 1 layer and 4 wells/section - $6 mm pv per well - now even if we say that at current pricing each well has a PV of $4 million - that would push each section (1 layer) down to $16 million.
Now we know that they have two layers so that means $32 million per section across to horizons. That would mean at current market cap we are only paying for < 1 section (2 horizons) after you minus out cash.
That is incredible when you think of entry points. After the next couple wells continue to delineate and modest improvement in sentiment towards the space the amount of upside this stock has is absolutely incredible.
Will do a little bit more work on my end.
Oh and before I forget - some nearby productive uphole zones include the Dunvegan, and Half way - there are more but those are some of them - Blackbird does on a good portion of their land have the uphole rights :)