RE:RE:Sad
inviolablspirit wrote: Let us at least be honest in that Art did not "Bail on the plan to drill all year and keep adding wells". Art completed phase A of SASB and with the exception of the one additional well to be recompleted he completed what he said he was going to do.
In any operation, once a phase is completed it is time to reevaluated and update the programs. That is exactly what Art is currently doing. When the original phase A of SASB began, TCF did not have the onshore oil well exploration property that they have today. So I think Art is doing the prudent thing by rescheduling the Phase B program of SASB to a later date and concentrate on the oil well property. Rescheduling is not the same as "Bailing".
With Nat gas prices lower I think Art's decision to reschedule phase B of SASB is the smart move for the company in the long term. Why continue drilling at this time at a burn rate of about 6 million per month, when the company can reduce that burn rate to $1.2-1.3 million per month and bank about $1 million profit per month for the oil well exploration instead. When the pressure problem is solved for the other 2-3 wells then the company could be bringing in upwards of about $3 million per month after expenses. $36 million per year to start is not bad for a junior company with larger prospects to come.
The onshore oil well exploration is far cheaper to drill for a far greater reward. It's just going to take time and it probably won't commence until Q2 of 2024. So I can completely understand the drop in the share price and insiders selling shares at the moment. Do I think this still a great company and a good investment? Absolutely!
In fact, Art is making it into an even better company, but you're going to need to have patience and a longer time frame than you originally wanted or thought before you see the share price that you are hoping for. In the meantime, I'm not going to be surprised by a drop in the share price as the drill program for the oil wells is many months away. I will continue to pick up shares here and there.
It's a shame this won't happen. But it won't.
Let us at least be honest in that Art did not "Bail on the plan to drill all year and keep adding wells".