RE:RE:RE:Number of outstanding stocksTrue....it's not too too high though. I re-read the release and for the most part, all the options are out of the money, warrants have expired and such. 44% of the outstanding is owned by the company reps. These boys have to get paid. Granted, they are rich boys, but considering the level of insider ownership, I can't honestly say that they are taking us to the cleaners. The office costs seem a bit high but then I don't rent downtown Calgary Office space.
Some costs that you should be aware of though, are 100 000 plus truck expense per year for an operator. Regardless of production they will need at least 2...and 2 trucks at a rate of 150 a day. And you have to pay the geo's pretty well to keep them around and also to keep them focused on the job at hand and not worried about their mortage.
I asked around and Geo's usually work in pairs so that they can bang ideas around each other...one gets paid more than the other usually, but it's alot given they have to buy themselves a job usually. Calgary isn't cheap either. This can cause cash issues if they can't vest their shares and options....which they can't right now given the share price.
As I said, I re-read the release, and given the date of the last well online....it doesn't figure into the production value given. The Website says 300 by mid July...they weren't too far off I think. Providing the news was accurate, (BW signed off on it)...I think that, as one poster said it's 300 easy. With the optimization program, and the other well included in the production numbers going forward..'..I dont think 400 is a bad bet.
To that end, I have decided to hold my present share number for the next 6 months...with the idea that maybe a horizontal can be financed with the present production, using the LOC in the meantime given their astronomically low interest rate LOL! Furthermore, I have added to the position by 52% for trading purposes based on hoped for clear results of the optimization process that is happening with the Twinning wells.
As stated earlier, I was hoping for a nickel by now. With the relative success of twinning, and my own comfort level of with management thus far, I am willing to. hold some and trade the excess for a few k, laddering the sells up to NAV.
I believe the FCF supports this idea.
Opinions?