RE: EOG versus HRT Blocks I always find it amusing when some guy who signs up for stockhouse 3 months ago starts telling everyone how to invest. I have been here since the year 2000 and the reason I am still around is because I make money, many who lose money come and go, but I am still here.
And these new guys think nothing of making completely misleading comments like "future nearby drilling will derisk the EOG land". Plainly a false statement, the drilling will derisk it only if the drilling hits oil, if the nearby wells are dry, it will actually increase risk. Thus, the poster is automatically assuming the nearby wells hit oil, a big assumption given the chance of hitting oil in this area is less than 10% for any one well. Thus nearby wells are likely to be dry 9 times out of 10. The smart move may be to buy EOG when it tanks because a nearby well came up dry. The odds are 90% that this will occur.
Then there is the comment that "EOG has more oil than HRT" well that is also false, they both have exactly the same amount of oil, namely ZERO, neither has any oil at the moment, all they have is potential. And HRT has greater potential because it has done its 3D seismic and shown a lot of great potential wihich EOG has yet to show. Maybe EOG will find oil maybe it will not, but we are a long way from finding out at this time.
Note OYL is the same, it has only potential at the moment and a small chance it will hit oil with the current well, I will likely be buying after the first well comes up dry (again the most likely outcome) and tanks, so I can get cheap shares for the next well. Cheap shares are a better bet as OYL shares currently fully reflect the risked value of their drill program, so the odds are not good.