Lonestar Res Ltd New LNREF

RE:RE:RE:RE:RE:Conference call...

[jerrybe]

This one keeps on sinking...it seems I am missing something. These guys are running a tight ship...obviously, they are currently navigating in shoppy seas, so as all the other small E&P operators.

They remind me of Callon in the Permian with a very tight control on costs.

Hedges helped them secure what I see as a very strong Q3. What please me the most was the recovery of all the production in some of their core production that had suffered from interference problems. That problem had raised a few alarm bells and I was very close to selling...that was at above $.50 with a nice profit.

One quarter later, operationally sound again but with a very different oil and gas price environment and this stock is half the price. I think the "mo-mo" traders pushed this one very high, it got a lot of attention after the SA article...especially on this side of the Pacific...but was probably sold massively by the same investors who pushed it up so much...I cannot believe it is this low. At this point, I would accumulate IF one wants exposure to small operators in the E&P space in the US. Their results are going to be solid quarter after quarter. They are going to buy more acreage as opportunities arise. Let's reconvene three years from now and see where the firm stands. GLTA!