RE:Operational Update with Increased Production Guidance
Looks like a good news release.
Seems strange to issue it now - I wonder why they did so?
They must be close to Q3 results release. I think last year it was Monday or Tuesday of next week.
It appears they've taken what would normally of appeared in the Q3 release, and made a separate NR out of it.
Why would you do that? Maybe to keep the company in the news. Maybe to keep this information from getting lost in the Q3 new reports.
OR - maybe, just maybe, they have someone sniffing around about to make a hostile offer based on a percentage premium to historical share price
Generally frequent NR's are how you run a company share price up.
As mentioned earlier, I like that they are drilling more for less.
I like the hedge prices they've locked in.
I like the cash flow they are forecasting - I like that they are forecasting it using WTI prices lower than we see today - so these forecasts are likely to be exceeded.
The only negative I can see - and its a very small one - is part of achieving thier forcast annual production is coming from a single high BOE gas well (high BOE, but low cash performer - for now). The plus side of this is I wonder how many similar gas wells they could drill, if the price of gas takes off (remember its about $200/BOE in Japan/S Korea, and Holland.