Headwater Exploration Inc T.HWX

This weeks report

[Bennys65]

I would like to see a suprize announcement that we are doing a merger.Also would like a map showing where we added the 75 sections.New drilling results derisking our land base would be helpfull.Increased cap ex would also be a plus.

[powerlunchmoney]

Seems like a good time for a merger with the start of a new year/quarter. But even if that doesn't happen, we are probably looking at a dividend or even a special at some point. Agree, lets see the updated map!

[Bennys65]

I know enough about geology to be dangerous.But so far hwx has talked about a sands and the sands suggesting this is a stacked play with more than one target.Tve just reported success in west martin hills producting from the f sands. breaking there play into thr upper and lower sands.Any thoughts?Maybe this is the distinct play types that hwx refered to.

[powerlunchmoney]

There is a map of the stratification of Marten Hills here at the 2:45 mark: https://www.youtube.com/watch?v=n7oBuSjp564 looks like there are several benches to drill!

[gareez47]

With a P/E ratio of 38+ a dividend is out of the question especially since they have so much drilling to do. I hold this because of mamagement's past performance at Raging River and see them as a takover target.

[Volkomm]

Looking at their presentation they are capping their production at 14.5 KBD. Why would they do this? Is is acreage limitations? I would think you'd only cap your production and keep the balance sheet sparkling if you only intend to sell the company. 

[Bennys65]

My understanding is that 14.5 is the limit of their infrstructure.They are slow to add new takeaway until they understand what the MA status is.No sense building out more capacity if the company you want to buy already has it in place.Just my thoughts

[powerlunchmoney]

Management has teased a divvy on more than one ocassion. If they do get a merger tied up, the new directors are going to want a dividend moving forward.