OTCPK:EDEYF - Post by User
Post by
brodanon Oct 13, 2011 10:40am
252 Views
Post# 19145312
Starting to really like this one
Starting to really like this one
If anyone has taken the time to read the last news they would have seen this. "transaction and has acquired a significant,producing foothold in the Edmonton Sands project area for $10,286 perflowing boe/day." Many investors in small cap stock dont even know what this means. I was one of them. I did my research and I think i am now going to have to go back to school to really understand what this number means. I spoke with Brad and another gentleman who is in the Gas business and they both tried to explain it. From what i could understand $10,286 per flowing BOE/day is a very good price. It means that at current prices the purchase will pay for itself in a couple of years. The going price for this kind of deal is usually priced between $30,000 and $35,000 per flowing boe/day. SO this means that Brad is doing his job for the shareholders by acquiring low cost production for a great price. This purchased added 175 boe a day! Speaking with an analyst on natural gas i was told that gas prices are at a cyclical low as well as trading well below the normal price spread between oil and gas. So oil has to go to $50 bucks or gas has to go over $10 .....im hoping the gas price goes up. EDE produces gas into the pipe line at just over $2.10 per/mcf.
Gas is currently trading at around $3.50...still a great margin and lots of profit. So why is the stock trading at 0.20....big seller around that pushed it down from the high .30s...and is still around. Once out of the way this stock should move a lot higher. Watching for a big trade and when one happens i will immediately add to my position. There are many oversold juniors out there, at least this one has a positive cash flow. I think that its easy to say if you buy the stock now it will be worth a lot more over the next couple of years. Broaden you time outlook on some of these companies that have been hammered into submission. Find the ones that have $$$ in the bank and production. You now have a winner.
Please do your due diligence
Cheers