We need support I agree that mgmt. is not helping the shareholder's cause by remaining silent, but I guess that they have their reasons. As an investor, I have trouble figuring why the SP is dropping and this is my "layman" reasoning:
a) as of Q3 co. debt was 61M even though they had completed 36 wells plus infrastructure on their plant, the debt had only increased 15M..........cost per well approx. 850K which means the company is paying upfront for most of their drilling. Company has over 600 completed wells.
b) Revenue for Q3 was 19.35M and from the NR 1/15/13 production has been been increased substantially which mean that revenue will be above 20M. If production was to remain constant (that is no more drilling), the company would be able to pay their debt off in 12- 18 mos. if not sooner. Their reserves are for minimum of 10 - 13 years which would make this asset extremely valuable thus my lack of understanding as to how the market works.
I would appreciate feedback as to what am I missing? The company showed over 5M net income for the first three quarters paying for their drilling, what would their results be if drilling costs were eliminated. I am very anixious to review Q4 results (supposedly coming out around 20th of April) to see if the debt increased substanially for Q4 as they completed 32+ wells.
Has anyone received any correspondence if mgmt. will be releasing any information that is capital budget guidance, etc.?
I await the correspondence.