Still it not made clear that the Well being held back in flow rate. Yet indicated as such by the former MD. I hear he will stay well invested in HOG and stick close to the action to protect his investment. He doubled up on his investment as is... with an OKish salary. Be pleased if former and current Directors remain near 50% of all holdings.
They up to their eyeballs in stock- very confident insider sentiment IMO. Do not just look at what they buy\sell on market but their actual holdings are BIG.
Good producing well being held back at approx 100k revenue per day... 3 mil pm... 36mil pa. Then Well 2 has supposedly got proven reserves of approx. the same as Well 1. Management stated 90% probable over the phone, making it a development well not exploration.
Others here are downplaying the potential of this future Giant in Ukraine for whatever reasons. Stating 1 in 20 or 50 chance is foolish on Well 2. Now Well 3 is a more riskier play. Yet between Well 1 and 2 Management expecting 100 Mil revenue in 2012. I believe this is possible... So we have a current Well with a potential flow over 50 mil pa, held back to 36Mil as do not wish to pay Gas Plant 17% of reserves we do not have too.
Then profit margins jump up to over 60% of revenue. Then approx. time of Gas Plant build we should have news on Well 2. Creating the perfect storm for a ST $1 play IMO.
cheers...
HOG Price at posting:
33.5¢ Sentiment: ST Buy Disclosure: Held
