RE:RE:RE:RE:market waking upI am not sure that the value of the shares should be based on the flow rates of single wells, although in the past people has done that. When GTE flowed the first well years ago in their field in Colombia, people valued the stock based on the resulting flow from the first well. But the smart investors looked at the field and saw that at least 10 wells would be needed and each would produce at the rate of the first well. That is why I loaded up on shares and made money as each well drilled pushed up GTE's price.
The same could happen here, valuing the stock based on the production potential of just one new gas well and one new oil well could greatly undervalue the stock given that management has already stated that multiple wells will be required for each field. So if the gas well is producing at 2,000 BOE per day, multiply that be 5 for 5 spread out wells on the field. And then if the oil well flows at a conservative 1,000 barrels per day, but 10 wells are needed, each at 1,000 barrels per day, then that is a 10,000 barrel a day field.
So I have a lot of shares not just based on what one gas and one oil well will produce, but on what multiples of wells will produce. I do not try to guess future share prices, but I do guess at the idea that the stock is currently not even close to reflecting its potential, and that is all I need to know to keep holding my shares.