Claritas Pharmaceuticals Inc V.CLAS.H

share price riddle ?

[willibrich]

Yes it is somewhat puzzling that QEI's share price has not really changed much since the big announcement on August 9.  Especially in light of the increased  trading volumes.
 And I say BIG announcement.......................... because as Sprott indicated, QEI will soon be going from an exploration company in Columbia to a production company. How much production , we do not know.
However , if you read the M & A  released on August 30................you will see   ''  It is anticipated that the perforating and testing of the well will commence in the latter part of the third quarter , 2010 and  last approximately 30 to 45 days ''
Now this tells me 2 things.  1)  Flow testing of 100 feet of pay over 4 different formations only takes 30 to 45 days if there are significant pressures and production  anticipated,  which need to be confirmed in order to arrange for commercial production infrastructure. And confirmation of  commercial flow rates is achieved by monitoring formation pressues during flow testing. If pressures do not drop much over a period of some days of production, then it indicates that the pool of oil being flow tested is large. This all takes time.
                                                    2) Perforations are used to increase flow rates from a formation. Again , there seems to be some significant commercial flows anticipated.

It seems to me that the market is taking an '' I'm from MIssouri '' posture here. But one item of note is that with the endorsement of Sprott , we small fish retail investors have  been given a rare opportunity. An opportunity to invest in a company which Sprott has identified, as having good management and good prospects going forward. So many times I have seen these Sprott picks go up 20 % , 30 %  etc. within days of being mentioned. Sprott's involvement gives me a great deal of comfort. 

Hey it is still a speculative stock. But now there is alot more hope for us QEI shareholders