I'm with you, Sthbound. For the life of me, I just can't understand why they are not pushing ahead, as fast as possible, with putting a well into Ocean Hill (OH). I'm sure that I am wrong, but one scenario that I cannot entirely dismiss is that the BOD is trying to suppress the STX share price by not drilling OH, and by going quiet on the new Walyering drills which by implication, would determine how much these wells will extend the life of the Walyering plant (and income).
As regards OH 3D, you are correct that not a lot of information has been released to holders yet. This, in itself, I find both surprising and concerning. To the best of my knowledge, they have had the OH 3D since sometime in last December. Nearly three months later, we haven't heard a word. This despite my thinking that as soon STX received the 3D, they would have been all over it like bears over a honey pot.
Could the OH 3D be disappointing? Possible, but, I think, extremely unlikely. They presented, and were very enthusiastic with the fast track OH record sections they put in their Q4 FY24 Quarterly Report (25th July 2024).
As you say, A successful drill, certification, and processing plant could see another $100M/year coming in within 12-18 months. Maybe, a shorter time frame than that if they just duplicated the Walyering plant.
What happens if the drill is a failure? It would not be good news, but, at a cost of only $8-10M, it would make them pull their heads in, while Walyering income replenished the coffers, but it would not break the company. At the end of the day, we must remember that they are still an exploration company. Where would they be now if they didn't drill WE2 because - if they did, it might be a failure?
t
STX Price at posting:
17.5¢ Sentiment: None Disclosure: Held
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