Small is Just as Good Maybe Better!!! Large or Small Recon Wins if there is a "Discovery!"
Ok let's say we don't have 120BBOE or Even 12 BBOE but we do have 500 Million to 1.2 Billion BOE commercially available. Scott Evans was responsible for expanding a 30k Barrels of Oil a day Operation to 100K Barrels of Oil per day. My point isn't on how he did that it's on the fact that he successfully ran an operation of that size.
So if the Oil is far more modest than whatever ridiculous numbers we've all dreamed on the Math is still completely in our favor. To produce 100k barrels per day in a conventional setting post discovery it could be done with as few as 20 wells. Or it could take more than that.
If that is the size I would much rather scale the operation and I would APPLAUD DILLUTION!!! WHICH IS WHY WE WANT THE SHARE PRICE TO BE HIGH!
Higher Price = less dillution. So we do care about the share Price People! It doesn't have to be crazy. They said they have enough $$$ on hand to Prove up all the Subbasins. Likewise we would still be looking at significant share appreciation.
So let's say they look at every one of the subbasins and they decide that RECON does a majority of this themselves. The higher the share price the less dillution. If more shares are issued we get a bigger share of the action. If a couple of these wells in the future are commercially viable there ya go. Our cash burn I think has been pretty modest.