1. Your comment re coin flowing is correct for now, however you miss the point that the only coin flowing out for drilling is from Merchant. BRK only funding acquisition of new leases. Doing this well IMHO.
2. Not running out of cash- they have head room via the US$2million leasing facility.
3. We have covered this in previous posts (but just to be clear) in the short to medium term they only need to fund the first well in each block. They have funding for this via the Drilling JV. Your correct that the timing of when the block gets drilled out is up to the operator (Marathon etc.) and at that point BRK will need to fund its share. But as I said in my earlier post BRK will have lots of NON EQUITY funding options for these wells (well 2 and so on). There are a lot of ways to fund these PROVED UNDEVELOPED wells (pls check the link posted earlier). If this happens before acreage position is sold it will be a +ve for shareholders- cashflow plus proved developed reserves.
4. They can and will sell the acreage when the time is right. Buy-low and then sell-high. The small interest in each "block" isn't an issue (in fact could be a +ve when the big guys are looking to mop up or late entrants are trying to get set).
I think they have presented a clear strategy, but always happy to hear another view.
IMHO its just a matter of time before holders get rewarded. Red Leaf spec buy price target $0.08.... Undeveloped acres selling in the play for US$20k/acre. Reached 1,800 acres ($0.06/share) already. Great well results. Neighbours wells setting records.
GLTAH
BRK Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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