RE:RE:RE:RE:RE:Strong volume, odd closeHello Kevin, welcome the board. Do take the time to read the Rock's post .. Well researched and very in the mark. Just to bring you up to speed a bit .. ArPetrol have numerous completions to do before going after the big offshore stuff. These completions are very inexpensive .. Estimate $250,000 per well. Assuming 5 wels of 10 warrant recompletion and they make 200 boe/d (the existing wells made 300 boe/d) you have a company now producing in excess of 1100 boe/d .. Without issuing one share. This is in addition to a plant that is making 5 million a year net cash that is un encumbered by any royalties. The next step would be to work out a deal with a joint venture partner to drill the 3 development wells. As they own the land they can ask for a partner to pay for the drilling of the wells for. 50% interest. This provides an additional 3 - 6000 boe/d net to the company with their partners gas going through the ArPetrol plant, which makes us more money.
The next step is to expand the plant to double it's capacity and optimize to get more liquids from the processed gas .. Again, more un encumbered cash flow ..
Rhe price of gas has gone up significantly since they started this company .. They drilled the well and got the target they were looking for .. It was only mechanical problems that kept this from going to $0.30 preconsolidation .. $7.50 post consolidation.
A good company you say .. I would say one of the best opportunities I have seen in the market in years .. .. IMHO .. Hope this is helpful.
Doc.