It will depend on how much of the estimated resource they can imply exists and is commercially recoverable through a successful drilling campaign. Both pfc and bkp.
IF the resources analysis does turn out to be a reasonable indication of what is there and drilling strongly implies this then we are dealing with a massive play and of course the sp can perform strongly.
If by some very good luck both the first two wells produce commercial flows then given the resources report the sp will over achieve.
We have a wide range of possibilities. You could get a long slow growth in sp as they make modest progress with commercial but non spectacular results with ups and downs along the way or the sp can accelerate away with alternative scenarios. Or you can get zero.
What makes BKP an exciting play and worth hanging onto long term is the resources analysis and the possibilities that come with it.
Yes sure the sp can go to $1 medium term, very unlikely but possible. My earlier calculations and estimates using some base assumptions indicated that if the resources report REALLY is a reasonable indication of what is there then 0.34 would be achievable in about two years IF things went well.
But it is still very early and what we still have is a resources report that indicates enormous potential but to be followed by a long series of reality checks.
I am very comfortable holding this stock and it will be very difficult to get it out of my hands.
BKP Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
