Gee, well you already know what I am going to say, but I'll say it anyway: IMO it may be true, but only partially due to the JV.
Why?
1. It sounds just the same ole crazy stuff people were talking about way back when about xxx hundred wells. It said it wash hogwash then and it is still hogwash.
2. Remember Hillcorp raised $300 million or so recently and all you have to do is go to the the Texas RRC site and see how active they are throughout Texas.
3. Even IF Hillcorp is going to hire "5" or whatever number rigs most certainly most of them are going OUTSIDE the AMI.
I'd say maybe one for AUT's area outside the AMI, ONE for the AMI to drill a max of one well every three weeks for the remainder of 2010, if at all, in the AMI and the rest for Hillcorps other drills.
The amount raised by EKA and thecash on the books for ADI prior to the cap raising would support about 5 or 6 wells this year until cash comes rolling in (Whenever that is).
So I say, it may be true, but has only a SMALL impact of the JV orphans ADI and EKA. IMO same ole hype starting again.
ADI Price at posting:
28.0¢ Sentiment: LT Buy Disclosure: Held
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