QuestionsI'm new to this story but it looks pretty interesting. I had some questions that I was wondering if anyone could answer.
1) are people concerned with the amount of running room that they have? They have 50 some locations to drill which is 4 years worth. That doesn't seem like a huge amount and with the popularity of the Cardium it maybe hard to add more.
2) What is the corporate decline rate?
3) what are the per barrel costs of the interest on the debentures?
4) How many sections of land do they have at Willesden Green?
5) How do people see this playing out over the next few years?
6) How is management at investor relations? I have an email in with them but no response yet.
Seems to me that with the success other operators are having with extended reach horizontals they could see another step change in productivity. I also feel like the shallow gas assets have some potential. Quicksilver,a shallow gas producer says that their CBM wells have an IRR of 85%, I wonder if the Edmonton Sands are comparable. I like the balance sheet, the debentures are annoying but they have time to grow production before they come due so they don't worry me. Hopefully they are able to expand production and get the share price up and add more land or another play. I'm impressed with managements excecution of the strategic alternatives process. Unless the share price rockets in the next few days I will start a posistion. I'm a fan of these turnaround plays with solid assets but complicated balance sheets, or unpopular concepts. Two examples of this would be LGX and Arcan. Anderson fits nicely into this category.
Thanks for the help,
NLR