What SG really should've done was get one of the first 2 wells up an running at an earlier date regardless of the potential of the cline and apply this newly gained knowledge on the next wells.
With what over 100 wells to drill with multiple newly found intervals who cares if we were to sacrifice the potential of a well or two or three or four. What we needed is cash flow especially at this critical early stage of the campaign and then give is the flexibility to slow down to get it right and have the safety net of several hundred boed to sit back on.
He could've got another vert squeezed in with that working capital from one of the first wells had one been put into production even with the new pump delays (6 months @ 100boed @ $80/bbl = $1,400,000).
Still revenue is trending up and now covering company operating expenses with upside potential so SG can't be doing a bad job considering we're 2 wells down.
I think we won't see the full impact of our first 2 wells until the quarterly comes out on 31.01.13 considering the next ones due 31.10.12 and the fracking is booked in August September, so what's that oil breaking thru and peaking September October at the earliest.
What really bothers me is how this Arcadia project came about, 45% of 3mil is a lot of money, why not get these other O & G minnows to JV on a series of what 4-5 verticals on our leasehold and then crank it up to 2-4 horis the next campaign.
Anyone have any thoughts on this idea.
GGP Price at posting:
1.1¢ Sentiment: LT Buy Disclosure: Held
