permian basin, page-48

Hi guys

It has been a while since I posted anything on this stock, the stock has been disappointing and I only have a small position in it now. I was fortunate enough to sell most of my stock before it tumbled from the 3 to 4 cent range. The reason I sold was because I was not liking the way things were developing. They were spruiking the idea that the plays were low risk and high impact and that by only having relatively minor stake on each well they were reducing the downside risk. The problem I had with this idea was that whenever you get a dud well the share price always get smashed way beyond the actual net loss to the company involved anyway. And having only a smallish stake in a well usually means any successes are heavily discounted. The idea of risk diversification works in some areas but not in others. I don't believe it works so well for junior explorers. Your better off having 2 projects where the chances of success are high than having 4 where the chances of success are halved.

Anyway that said I do believe the stock can bounce back.
The Permian Basin acquisition looks good on paper. I hope they have not lost faith in the other projects but one has to wonder considering the way they go silent on some projects.

A big thank you Scottport for all the info you have provided.

Cheers and good fortune to all, Frosty