insider trader-stock pick of the week - 06feb, page-35

Everest,

you present a post full of assumptions.

You ASSUME that value is only money. This is short-sighted by all strategies. If you don't understand your resource you will inevitably end up spending more later trying to learn than if you do it right the first time.

You ASSUME they drilled as hard as they could, despite the statement I specifically stated in my post about 2012. They weren't drilling anywhere near as hard as they could 2012. They had other commitments and priorities.

You ASSUME NPV is their immediate worry, which is blatantly not true currently. They could go and hire a drilling contractor to mass drill for an expensive cost like AUT did, but that would be against their current strategy and would cost far more capital in the long run.

This is like the tortoise vs the hare. Which I agree watching a tortoise is frustrating but nobody is forcing you to watch, are they?

Finally, they didn't know they weren't commercial hydro-carbons before they drilled did they?

If they had come back at 50BOPD or 100BOPD from hetlime formations, would you be praising management effort?

They are discovering everything about the resource so they can maximise their time/money as the field develops. It's a smart long-term strategy. Most of the posts I have seen negative on MAD seem to be more about impatience than actual facts. Drawing conclusions from thin air and stating it as fact doesn't make it so.

N.