Hey Jumpy - OTJumpy:
I was wondering what you might think of another company that has apparently hit a very large
target. I'd be interested in hearing your views on how it compares to Adulis (which I own).
Gastar (YGA:TO), has discovered a very deep formation in East Texas that is huge. The
company pres, Russ Porter, has stated on several occasions that they would have around 2 TCF
of gas with 100 foot payzones - their last 2 wells on the main structure each had payzones of 400
feet! Their FK well flowed an AOF of 157 mmcf per day. The pres said it was the most prolific
well in Texas in 35-50 years. Those 2 wells are now in production and are generating cash flow
for continued drilling. In terms of acerage, they had and exceptional start on the competition so
have been able to amass an excellent land position in the area. They want to drill 200 wells. The
company has just over 100 million shares and trades at about $4.50.
If FCP in Algeria goes for C$8 billion plus (let's hope) Gastar in Texas is tremendously
undervalued.
The downside of the play is that these wells are very deep (20000ft) and this brings extreme
pressure and temperature. The wells are expensive to drill too. However, the Gastar team seem to
have figured out the geology and the drilling.
I encourage you to read through the last 10 postings on the YGA board and listen to the
presentation Russ Porter gave February 7th at a small cap conference in Florida. The numbers are
very impressive.
Here’s a link to the YGA forum.
https://www.stockhouse.ca/bullboards/forum.asp?symbol=YGA&table=list
Here’s a link to the conference. Just click on the speaker icon beside the Feb 7 presentation.
https://www.vcall.com/CEPage.asp?ID=90343
I'm not looking to pump here. I'm just looking for added feedback before I take the step of adding to my position. If you get a chance, let me know what you think.
Cheers
Walden