RE:RE:updatezadman wrote: Decent fundamental underpinnings but unfortunately, not enough sizzle to take us materially higher without the help of an underlying commodity rally. I was hoping for a gap up, ain't gonna get it I don't think....
Zad
Agreed - However, given the current environment they are doing well. They will be poised to jump when the price of Oil recovers.
As I see it
The positives are:
- Two wells are materially higher then the initial type curve
- They have only booked 15 locations in thier reserves with endless more still to be booked.
- Bank re-affirmed thier loan faciilty amount
- Increased capital spend due to lower service costs
- Successful drilling on all wells
- Gas shut-in guidance for probable return online
- Payout of 18 months at $50/barrel oil - Still very good.
The negatives are:
- Slight working capital deficiency
- Certain wells came in slightly below the initial type curve
They may be slowed down related to thier growth trajectory due to the low oil price environment but they are still on that trajectory.