Headwater Exploration Inc T.HWX

waterfloods

[Bennys65]

Looks like hwx will be starting two waterfloods in west marten in march.Brian fron tve has stated that no one seems interested in waterflood so he doesnt talk a lot about it.That maybe about to change when they report march 1.I hope that results from their new pad will be avaible and it will show their first outstanding response was not a one off.Garg white tundra said on sunday he is holding tve waiting for waterflood news.Tve also said they think their waterflood potential moves east on deltastream which is close to us.Hwx stated they may have the same rock as tve.If that is the case first response should start showing up early june.Compare that to one or two years in a convential pool.We are using two different formats to test the response.Will be fun watching the market catch on.

[riski]

Great info Benny. I love the clearwater. It's the best play in North America. However, I am not enamoured with the corporate decision making at TVE. It's ok and they will do well in a strong resource price environment, but the clearwater effect is diluted compared to HWX, there are too many shares out, and the debt hangs over the company from the acquisition.  Last month I reduced

[Bennys65]

Hi Riski I own them both.Heard Steve Buytels give a talk on the rational behind the delta deal and it just made so much sense even with the debt and shares issued..Time and numbers wil tell.

[riski]

Absolutely. Delta ties into TVE nicely and they will do well, but it requires a a few more years for the shareholder returns to manifest. Also, Brian had to pay top dollar to get those assets which puts them behind that much further. In discussions with the oil execs I know, this is why Neil shied away from the acquisition despite being in on dicussions to buy Delta for some time. According to the

[Bennys65]

Neil offered 1.1 billion Brian 1.4 Maybe that was all Neil could raise.Just saying

[riski]

Yes, that is exactly the number I heard. And very good point about access to capital. We don't know a lot of the behind the scenes information.