There is debate on what company to play. There is an obvious reason why DC (Donnycreek) is a better play based on the current well - their higher ownership.
I however do not think the higher ownership warrants a higher valuation, or owning the stock over CEX. Here are my reasons (in order of importance):
1) "During the period ended December 31, 2011 the Company entered into a credit facility agreement with its financial institution authorizing the Company to borrow $2,000,000 in rolling increments of $25,000 with interest at prime plus 1.5% per annum. In addition, the Company can access a non- revolving acquisition or development demand loan in the amount of $500,000 at prime plus 2.0% per annum."
This is from CEXs annual statements - this means they can draw on this loan instead of issuing stock (I have no idea re DCs capital position, but having 2M in loan flexibility sure is nice
2) CEX has many properties resulting in more cash flow streams. If there is flooding or extreme weather in the area, CEX will still generate cash flow while DC will be offline. LOWER RISK
3) CEX having a lower ownership means lower capital requirements. If a well comes up dry, they will have spent less cash than DC.
4) Contact is the operater of the land giving them more flexibility
If anyone has comments I would love to hear them!