RE: RE: RE: What will it take?2 of the wells will come back on in June and July but will only be producing at their non over production rate at about 100 and 200 bopd respectively. These numbers will go up when water flood is approved but we do not know when. last time it took close to a year and I expect the same for this go around as the submission was modified to add additional wells to the application which will most likely add delays to the approval process. Management tells me that all wells from this point on will not be over producing and therefore lower but more consistent flow rates will be the new norm for ee.
We are experiencing higher than reported decline rates and production hiccups. With the lower than expected cash flow, expect a share offering before the end of the year to pay for their drilling program. With the decline rate more than expected and production issues on the rise expect the exit production guidance rate to be updated lower. These are all the negatives. We need some unexpected high producing wells from our drilling program and water flood approval before this stock can move back to $2.00 + range. currently nothing is happening due to break up so we will need to wait until the end of the summer. Good value here but dead money for a quarter.
I hope they get luckily and hit a big well to change the momentum before they need to go to the market.
Cheers
Life Learner