Spoke to IRI had the opportunity to speak with Don Bain today and my reaction to the phone call was positive.
They are definately not happy about todays action, and didn't forsee a drop like this at all. To address the possibility of an info leak, they are tight lipped and today isn't a hint of a news leak at all. They are still drilling away, and in proximity to the oil seeps. They chose the drill locations based on the locations of the oil seeps as well as all the seismic work they have done. They have 5 million dollars cash on hand with these 2 wells costing approximately 1.5 mil total. They have cash on hand to drill the holes and complete them.
The news released today was put out in response to the drop today, and to show the public there really isn't anything to report on yet.....and to tell the public that the selloff today wasn't the leak of any kind of bad news. They will know if they have the goods after finishing their drilling and everything is appraised and they plan their actions from there. They are currently at 450-500m and drilling through limestone just as the news said. After all, 450m is still pretty shallow and too early to jump to conclusions.
He was down to earth, straight to the point.....didn't sugarcoat anything.
Dont forget they also have their lloydminster project where they are hoping to get approvals and start drilling for their heavy oil project there. He emphasized this is production drilling at this location....not exploration drilling. I've been to several oilsands locations and they have large pads of dozens of wells that are all "in the zone"...it's the nature of the oilsands. Cover wide areas so it's not overly difficult for these companies to find where the payzones are and drill with success. Just take a drive near Lloyd....there are wells everywhere.
I suggest if anyone is feeling skittish about their holdings, and feel like they are in the dark from whats going on, give Don a call.
One thing I cracked up on.....
I don't know if anyone brought up the movie "there will be blood" with him but I bet someone did. He brought up how todays drilling doesn't end up like in the movies where you have some massive gusher spraying oil several feet in the air. I had to chuckle on that.
Have a good weekend. I look forward to Monday's action.