Wow, the sky is falling, and all explained by the company. Fancy how working in best interest of the company is bad strategy because what you said would happen came true.
Question is, is it good strategy? will decisions made in past few months to clear contract drilling, sell off fairway drilling for a fat pay check and expand it quicker, upgrade your equipment to go after big targets, and buy more land as cheap as you can, fit their business model? Yep.
Have we had enough time to evaluate if it has worked, nope.But we will get a peak next quarter and really know in 6 months time.
Alternate strategies were to sell reserves now, keep drilling 3 wells a month and have contract drilling commitments. raise more capital and bring on new rigs and workforce over next 12 months that gave you a hit at high impact targets about 10% of what we are going after now.
None of those exploit size of reserves. The current strategy does.
You have a solution to size and scale of the cash cow. We will double existing wells and production within 4 months. You shift your capital to 100% of higher value wells. New field development may or not pay off
Low risk and profitable to find out if it works with big rewards due to lower dilution.
I guess those who react to ups and downs in production as the company shifts strategic gears will get a big up feeling at next quarterly.
FDM Price at posting:
$1.02 Sentiment: ST Buy Disclosure: Held
