Interesting ReportHave not listened to the call yet, but I expected the news to be bad and I just don't see it. The average rate per well comment is news, but they muddle it a little by indicating that they are purposly throttling production to stabilize things. Not sure I would have been doign that with brent at $115, but it it what it is. If throttling at 100 bbls/d/well allows them to reduce declines quarter to quarter, then Q4 exit should be OK - though i think they'll probably hit the low end.
The key thing about BNK is that they have no debt, and have hedges in place for 2012 at I believe $80 Brent - enough to pay for operations.
The fact that today is bloody on the street is holding this back, but i tend to think that this should go back over 4 soon. In any event, I'm willing to buy at under $3.5 and hold for the long run - through whatever mess we go through in the broader market. Very few juniors have no debt and positive cash flow with Brent at $65.
As for why Shorty is sitting on 28M shares - I'd assumed it was because they knew operations were not performing, but unless BNK is hiding something in the report, it does not look like they are.
BTW - Brent and Nymex are now both up for the day. Goldman lowered their forecast for average brent in 2012 to $120 from $130 - the market right now is pricing in $70.