RE: RE: another piece of data on net pay thicknessTo me it means each new well that they drill that hassimilar characteristics to Sidewinder should add $10 million in value to the company (about 25 cents pershare). Since Sidewinder was a discovery well that proves up alarge block of acreage, the stock price responded more strongly than it would for a development well. I think an increase of $1 per share from the news was about right. If it keeps going up in the next few days, I do not think it will be due to a reaction to Sidewinder but rather to shorts covering or people who are interested in speculating on the East Coast properties buying the stock before it gets too expensive. Or a new piece of news leaking.
If management continues to execute on their gameplan in the Taranaki basin, I believe the stock will be worth $8 or more by year end, and TAG should have $4-5 per share of proved reserves. If there is any progress in securing a partner to help develop the East Coast basin or if they have promising results from an exploratory well into the shale, the price should go a _lot_higher.
So overall, I don't see too much risk in buying at these prices and the upside is significant.