It really is a difficult one to answer.
Borba could be a giant. However even if it is there is still risk in recovering the gas. Although once proven there will no doubt be multiple drill locations to maximise returns. First step is the resource estimate. The higher that is the higher expectations will be. The same reason people pile into lotto jackpots. They have the same amount of possibility of winning a division one in a non jackpot but the bigger the prize the bigger the excitement. If by chance the resource estimate is 10tcf or higher then the scramble for tickets will be enormous. Doesn't guarantee any more chance of success than drilling for 2tcf but that prize is mouth watering if successful. Some people scoff at 50c valuations and they might be correct however the potential is there and even well beyond 50c all depending on the 2 key factors. Resource size and the ability to recover it.
Now on top of this for those that listened to the GJ interview, he seemed rather excited about current recent acquisitions and the potential of adding more. He also believed that the oil and gas prices are in recovery mode.
A number of others are saying the same thing. So whilst your petrol price at the pump is looking being more expensive the price of your shares should more than cover it
Both XST and SGC are looking at being more than a one trick pony. They have cash flows from January already with more to come.
To say this is an exciting time to be in this stock is a massive understatement.
XST Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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