insider trader-stock pick of the week - 06feb, page-39

Everest,

You misunderstand entirely.

You are taking the short view in terms of NPV. There are many ways to skin a horse.

What I'm proposing is this:

-They could do what you say, hit all the low hanging fruit, boost production heaps and get a successful drill rating of lets say 60-70% (just as an example) and half those could be lower producers per well

-They could learn where the best spots are, how to best drill their field, what possibilities for expansion are and how to best plan the drilling and THEN make a long-term and short-term plan production wise.

Get a drill success rate of far higher (90%) and have all new wells be good/better producers because they understand their acreage better.

Do you not agree that information and research is value? or is oil RIGHT NOW your only concern, with pain later? (see what I meant about impatience?)

Secondly, to address your points:

1. If you read cashflow, they could of done that goal quite easily and just plotted along slowly. Of course when you considered this point did you also read the fact you wanted production quicker?

Listening to you reminds me of clients from work. They want the best plant with all the features for the price of a plant with no features in the time it takes to build half a plant.

You cannot have everything realistically. They have used the capital wisely, investing in land acreage, drill rigs, and expanding their capability.

2. Believing brokers is probably your biggest mistake in all your logic seen thus far.

3. Please provide this report? I haven't ever seen a figure saying 50 BOPD per well in the fairway. While I believe it might be possible the average is clearly stated as 20-25 for blueridge. Nash and boling were expected to have higher but not that much higher I believe.

4. Which 'Proved' well locations are economic? what figures did you use to calculate the economics of that particular well? and how did you find the exact location of this proved well and cross-match it with proved reserves location?

I don't believe you have and I think you are 'assuming' (that evil word again) that because several wells got plugged they were drilled into proven ground, when in fact as discussed last quarter they drilled several into the flanks of the fairway targetting het-lime oil pockets.

5. The company R/P ratio is high but do you have any other companies on your list less than 1 year into developer status and in no debt? also do you have any with a JV capital of 100 million to spend in production increases?

This company has added a lot of value in the last year. Just because it hasn't met production 'expectations' set by brokers does not mean the stock, or the oil field, or the reserve report are inherently faulty as you and Pto are suggesting.

Either way we will know in coming 6 months. Based on this afternoon we are hitting the top of the trend-trough. If it breaks through I'll buy back (position changed to ST buy based on this technical indicator).

Could bounce off though.