Contact with mangementI spoke to management recently. I decided I will share with you. This is the 3 main points :
Cash position : They will have approximately $25-30.0 million working capital by year end and that should fund the frac/completions of both Baldwin and MacIntyre and then 2 more horizontal drills with frac and completions targeting the Arthur Creek “Hot Shale” formation.
Farmout : For some time now, probably 4-6 months They have had a number of larger international companies very interested in the play and have confidentiality agreements in place. Heritage Oil and Gas have also been actively buying their stock on the open market and currently hold a 15% position in PetroFrontier. They have maintained it is for investment purposes only but they believe it may be otherwise although that has not been confirmed.
Go back drilling : They expect to be back in there by mid of March to complete the horizontal leg of MacIntyre, will frac and complete with results by mid April and then move to Baldwin to frac and complete with results by mid May
Everything sound positive to me. They have 30 million cash enough to complete those 2 wells plus another 2 wells. So no financing necessary before the end of next summer. They go back drilling in 3 months. So the market should begin to firm up within 2-3 weeks. I think this is the last time to buy the share (don't see it going under $1), because before drilling we should be back at $2.
GLTA
Julien