Short term noise?? I am very surprised with the stock movement since the second well's news release...The results were as good as the "gusher" first well significantly derisking the area, higher than expected condensate numbers, and the well was drilled under budget and ahead of schedule. You would think shares would be higher with this news! The market appears to be valueing the company at around $2/share for the time being. Possible reasons why we are not seeing a higher share price:
- start up delays on the first well...does anyone know what management means when they say "short term delays"? Is it 1 month, 3 months, 6 months?? I think we have been delayed about 1 month right now. Are we going to see similar "start up" delays on future wells?? I realize this is beyond managements control but pipeline capacity continues to be an issue in N. America.
- I seem to recall some shares from a spring/summer fianancing became free trading in early November...can anyone confirm this? I think it was around 4 million shares at under $1, this may be holding share price back.
- General market sentiment...Most O&G juniors are down this week.
- "traders" are moving out until next well is spud.
I still believe this is all short term noise and the second well results further confirm the strong economics of the play...In fact, this may be a good time the start buying again before the next leg up. As I have said before, paitence will be rewarded big time with this company.
GLTA
Footlong