The other thing to note that as the months pass by HOG begin to retain earnings. So after 1 year we may have 25M in the bank. This means that without any additional discovery there is an extra 25M in cash backing that must be factored in to any valuation.
You can bet the HOG management will already be looking at other permits and acquisitions now that this first well is steady. Given their detailed knowledge of the country I would expect more high quality permits and targets to be acquired this FY.
HOG Price at posting:
47.5¢ Sentiment: LT Buy Disclosure: Held
