RiskyThese guys talk a great story, but you've got to wonder how successful they'll be. Their cost are out of sight. $14.00/boe operating costs;$5.50 G&A; a huge $32/boe depletion/depreciation. As well, their debt is a whopping 2.3 times Q1 cash flow.
The corporate presentation complains they are undervalued compared to the NAV. However, their stock is already trading at a lofty 5.7 times q1 cash flow. Even if they do increase production 20% over the year, they need to get their costs under control before investors will pay much more than the $2.00 current price.