It is very promising. This is shale not normal NG drilling. It will take wells and time but based on SEHs early results this is comparable and better.But more importantly this looks to be better than the early drilling conducted by Camac.also remember SEH is doing it in the same basin.They have upto 3.5TCF in their holdings. this is not a new area.This is not time for pessimism.
This can only mean the drill team learnt from that early drilling. Flow rates are important but so is the type of shale,water penetration,quality of drill team and equipment and so on.Lots to do but that is the same in any business esp resources.
On management I do not agree that they have mislead.If anything they do not say enough. But this is essentially a cash box finding a new venture. it looks to have found oen.
Now I shall be interested in whether it springboards from this early success into more acreage being bought by LRL. this will give them the confidence to keep going.
UK may fall tonight but it would need to go to 17-18p to equate where we are today. That is $22m ev only.....that will change if the drilling continues in this vain.
LRL Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
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