RE: EOG Stock price Hey,
I can buy into someone shorting this stock to make a quick buck but i don't see another PP anytime soon. They just did one and will see another $3 million off the warrants if the stock heads up over $2 and forms a new base there. So they have $9 million and only have 3D seismic costs to worry about in the near future. Why would management who own almost 50% of this play sell another big chunk at a $1 when the party is just starting? They have the GUY estimate to come and if it is as big as they think then they are sitting on a minimum 10-12 billion in prospective oil with the neighbor next door getting ready to drill 4 wells. If any of them hit and prove a viable source kitchen then EOG's blocks have been majorly derisked. If some of these other wells hit I could easily see these guys going it alone on at least one exploratory well on the Sharan block. The stock would easily be $5 if any of the neighbours hit especially HRT next door. Then u could do a 15-20 million unit placement and raise $75-100 million as the blocks would be massively de-risked. Drilling on Sharan would cost no more than $50 million per hole (very high conservative number as Chariots is costing $32 in deeper water) so they could do at least one to find out what they have. I for one doubt they will be given a chance as if any of these other wells hit especially HRT I think u will see a major take out EOG for about a billion. None of the majors are in here yet and if this region becomes as prolific as the Brazilian side and they miss the boat again sh*t is gonna hit the fan! Major premiums will be paid just to ensure they are at the party. All in my opnion but will be stunned to see another placement done at these levels with this story still so new. Looking forward to the next few weeks with much excitement and hope. GLTA longs!
Longrider