RE: RE: Reasons to be CheerfulShort term should already have left, so it us longs, Haywood and any new entrants still here.
I see a continued fall for now, sub 10c is probable imo. Many would say sell, but i will be holding through for 4 reasons:
- No results as yet issued from U4. Potential still exists there in the immediate short term.
- Mira told us they believe they can increase rates to 2,500bopd with stimulation techniques and U4 gas lift. They must think U4 has something to offer therefore. We do not have a timeline on this and being out if results were positive would leave me somewhat bemused. Management are clear on this, " these two intervals have the ability to deliver in excess of 2500 bopd" I like the words of 'in excess' in particular.
- New resource estimate noted as Jan 2012, could be as little as 3 weeks away.
- I only sell on changing fundamentals and stick to my strategy. In excess of 2,500bopd from 2 damaged zones bodes so well for potential rates from TSB-3.
Just my 10p worth- Regards, Mark.