Carcetti Capital Corp V.CART.H

RE:RE:RE:RE:RE:RE:RE:RE:Why use dark pools....

[Bobwins]

I didn't give management any credit for the positives.  They kept the company together during tough times by using their connections to gain valuable acreage at cheap prices.  Obviously the U acreage is a good example, getting paid several million for someone else to drill up to three wells.  These are smart guys and even though I am impatient for them to drill themselves, maybe that isn't the smart way for them to go.  I don't like the lack of control that approach implies but it certainly saved the company and doesn't require dilutive capital raises. 

One way for them to get the low rates regardless of politics is to drill deep wells.  Don't know if any of their land has deep potential but Kub Gas is going for deep wells in their 2017 drilling plans.  That could mean that Cub won't get the production increase from Kub's bigger investment in new wells, which is not positive since we get ALL our production from Kub-Gas. 

Back to the positives.  The potential of the Stanivske license is tantalizing.  IF Cub thinks they can twin the previous well and they can produce at anywhere near the test results without the water, we are golden.  BUT of course, we don't know anything at this point.  Certainly mgmt must have some hope of doing that otherwise why secure the license?

So I am holding and waiting.  One of these days, they will reactivate the RK field and we will get a modest boost in production and income.  One of these days, their partner will do the 3D and announce their drilling plans for 2018 for the U field.  One of these days, we will find out if/when Kub-Gas is planning to deliver any big gains in production for Cub in 2017.  At this point I doubt it.  One of these days, Cub will decide if any of the prospects look tempting enough to drill themselves.  And finally one of these days, the Ukraine govt will decide if they want to be energy independent.