Thanks for the reminder.......it's not back at $1 yet! Hopefully later this week : )
But seriously, a whole decade went by and nothing ever really panned out, Whicher Range, Turkey, they blew an awful lot of money in the US with nothing to show for it, culminating in Rowena! Yellow rose was their last roll of the dice....the ironic thing was that the Eagleford shale wasn't even on their radar when they acquired the initial acreage : ) They were targeting Edwards limestone. It was only when other companies who were drilling on adjacent leases started showing interest in participating in yellow rose that they realised it was worth something. Fortunately they aggressively pursued this project (additional acreage, etc) with fairly limited means, and it is paying off. I honestly believe it's different this time. After drilling a bunch of wells, the field will fund itself?
I am curious though? They've only done fairly small capital raisings so far. If their preparing to drill 5,6,7 and 8 right now......that's gonna take some serious doe.....there was only $11M in the kitty at 31/3/10......these wells are at least $5M a pop.....what is their short-term financing plan? Debt?
And that old petro-hawk black ops jv well must have paid itself back by now? Did we ever find out what the details of that deal were? 50% to AZZ after pay-back? Do you think Petrohawk will just buy the jv acreage off AZZ?
I've been fully cash for a while now....even though I see excellent medium/long term prospects for AZZ, the coming months could get very ugly for global equity markets/commodity prices, so I'm concentrating on preservation of capital........I just can't resist jumping into AZZ once in a while for old times sake.
Will be very interesting to see what they have to say at the AGM?
Best of luck, Regards, Whippet
AZZ Price at posting:
62.5¢ Sentiment: ST Buy Disclosure: Held
