Talked to several oil and gas firms who are or will be talking to EOR over the next couple of months. Regardless of what is blogged, several facts, that is FACTS should prevail here.
Firstly, we have 17 mill in the bank. Second, we have anywhere from 400 to 700 drilling locations on our properties. Third, we have had two relative successes with the acidization program and a possible third one coming next week. Fourth, the 500+ bbls a day of light oil that are currently being produced have value on a flowing BBl basis, which i am going to guesstimate at 30,000 to 50,000 a flowing bbl. Fifthly, it is only a matter of time until EOR is taken out by a larger player, and the Board and mgmt cannot really stop a takeout as they do not hold enough stock to stop and offer of 30c to 50c. being taken seriously by shareholders.
Czero can rave all he wants about mgmt not making the greatest decision but the net result is that the acquisition of the N.M. properties was done at a time of lower prices for oil and gas. With improvements in Frac tech, those purchases look awfully good. 500 wells at 50bbls a day=25000 bbls a day. Pipe dream to be sure, but with tech improvements, who knows.?