The stock retreated following the announcement because despite both zones flowing at circa 1500 bbl.'s per day, the debottlenecking is only going to add 200 bbl's per day capacity at 1000 bbl.'s total. This begs the question, why drill the second well? The market is currently valuing cash in the bank at a premium to reserves which is all a second well will deliver. My guess is that they signed a two well contract and think that the results of a second Bunian well will exceed that of the originally planned well. Either way, we're buring money without adding anything further to cashflow.
The stock retreated following the announcement because despite...
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Mkt cap ! $475.2M | |||
| Open | High | Low | Value | Volume |
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