RE: RE: News Upon further review You can add another 50,000 shares to that 1 % Lux, I have been holding out on you.
Operating expenses include all normal operating costs as well as workover costs for both the Gordon Creek and the Rush County projects. Second quarter costs increased 20% over the first quarter and 54% over the second quarter of the prior year. In addition, the operating costs increased 60% over the six months ended July 31, 2011. The increase is primarily due to increased compressor lease costs incurred during the quarter as the Company prepared for anticipated higher production volumes as recently drilled wells are completed and tied in for production.
The above makes me wonder, costs increase 60% compared to the same time frame in 2011. Increase is mostly due compressor lease cost in anticipation of higher production. I have to agree that something has to be going on OR someone made a big mistake. On paper it looks like costs when up 60% for equipment we did not need until they tie in the wells which they won't do until early fall. The above was prepared as of Sept 28. Seems they may have been leasing this compressor even before they got the 3 million from Sandstorm. Seems they have been evaluating these wells for 6-9 months now. How long does it take?
So yes, I also think something is up. Maybe they have a buyer who wants to complete the wells with their own technology or is calling the shots. Maybe Sandstorm is a minor problem here? Either these guys are making too many mistakes or something really is up that has delayed the completion of these wells.
BTW, if I am not mistaken, it is early fall now. Maybe nobody wants to work for them. LOL
Good luck to all, GLTA, and Cheers