RE: RE: RE: RE: RE: RE: RE: COS 16-22% !!!!You are right omjb99,
Yes I spoke to management yesterday and told me "it has been a long haul not only mechanical problems but has been geologically challenging as well"
They expect to reach TD by next week so around 11 weeks drilling whereas they planned first 3 weeks.
and told me "yes we will have cost overruns with this drill"
I asked about the cash position just told me they had 32 million before drilling. First they were expecting 6 to 8 millions per well on the 2 first well with the fracc. Now my guess is with this massive cost overrun the first 2 wells should cost around 3 times more than expected so 21 millions per well.
As they sold their canadian asset for 6.8 millions we should just have enough money for this 2 well program.
If the dont get IP over 1000bpd (less than 5% chance of success) this stock will go to 0 coz they dont have enough money to drill other well and the shale would prove to be uneconomic.
Very ugly.
Very dark future. Happy not to hold that pig.....