to those pessimists who sold today..., page-13

Despite the SP being decimated today, I'm still happy to hold BUR. Why?

A couple of weeks ago I suggested:

"I was thinking about M1 last night, and I think we need to be patient with regard to the flow test results.
When they start perforating and flow testing I would imagine they will do it from the bottom up. When they were going to attempt DST they were intending to test the top 20ft only.
So perhaps the lower zones will not be the headline ones, and we should be prepared for that. I'd hate to see everyone chucking their toys because the bottom zone is perforated and connected to sales at 1mmcfd.
I'm no geologist, but I would also imagine that it would be undesirable to perforate and flow multiple zones, as pressure differentials between zones could see gas escaping back into the reservoir."

(Not saying "I told you so" because if I was that clever I would've sold last week and bought back in today!)

While I wasn't expected water contact to overwhelm the gas content at these lower levels (nor for this water to possibly damage the upper 20ft interval) I didn't have great hopes for this early flow testing. I believe that there is still a significant gas reservoir at M1, but that they missed it. But now they now where it is. So they'll try to remediate that upper 20ft so it flows, and if not they'll drill another hole.

My disappointment today is mainly related to the language used when describing the delays to the fraccing operation. It's almost as if they've got sick of people asking when H1 and J1 will be fracced, and have chucked their toys.