Whilst it would be nice to have EP 127 being drilled first perhaps some more thought should be put into whether to hold or sell BKP based on todays announcement.
As it stands the only way to get direct exposure to EP 103 is to buy PFC on the Toronto exchange (As I understand it but pls correct me if wrong). EP 103 will be the first horizontal well drilled of it's type in Australia as per BKP announcement dated 8/11/10:
'The proposed drilling technique will utilise horizontal drilling and fraccing, a technique that is used to test unconventional oil rich shale zones in North America and it is BKP?s understanding that this technology has yet to be used in Australia on this type of formation'.
With the drilling expected to commence mid Feb or a bit later depending on circumstances the outcome of this drill needs to be taken into account for BKP holders.
If EP 103 is a success what do you think this will do to the price of BKP? I know that they are different areas but I think that the successful use of the horizontal drilling on EP 103 will have a positive influence on the stock price of BKP and the chances of success at EP 127.
All my opinion but I think that it is worth holding at least see how EP 103 goes and the assess the situtation again. If EP103 is successful I doubt BKP will be anywhere near the current price.
BKP Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
