euroz best buys may, page-27

what is managements goal here?

Well i would say they are pretty evident at the moment, increase production/cash flow via constant drilling and consistent results, one day eventuating into a cash flow positive project/company. Which in turn increases the market capitalization of the company in turn creating shareholder wealth.

One thing that has never been mentioned for the cause of the lingering share price was the fact that Chesapeake sold a considerable amount of Mississippi lime acreage at prices considerably less than even pessimists forecast. Things to take into account for this transaction was the great debt problem Chesapeake has and also there acreage is west of the Nemaha ridge. But none the less would put doubt into a lot of bigger players off buying.

Another factor is Sandridge downgraded their oil EUR estimates for there wells in turn making them less profitable than previously forecast again creating doubt about the play. One thing to remember is again the majority of Sandridge's drilling to date has been done west of the Nemaha ridge.

The East and Uplift of the Nemaha ridge is proving to be the sweeter spot of the play. But as Devon has said recently - For Devon, "It's an exploration play; it's not a development play,"