But does not that logic mean you are assuming zero from all wells already drilled?
Even if they do zero drilling for the rest of this year, if any of the already drilled wells prove up then money will start to flow into the company... the higher the inital flow rate the more money, as I see it the inital rate is important.
With both J#1 and H#1 already drilled we could have two wells on production within the month. Then again both could fail.
Also they Do Not have to pay for All future drilling from M#1, clearly. They have options going forward.
At this point they will/can: -
1) use money that is flowing into the comapny, if either of these two wells proves a success 2) farm out furture wells 3) capital raising
or part there of for of the above three...
At the moment we have a probable commercial flow rate from H#1 without it even being fracced, so at an absolute minimun this is posative.
Both J#1 and H#1 have flaired to the surface, again not proof but a better than duster indicator.
It would have been best, Yes, for a nice big flow rate from M#1 but hey it just did not happen.
Lots of risk but also upside.
They key here is to prove the field with as little capital raising, farm outs as possible obvioulsy.
All they need to do this is focus on the wells aready drilled and get maximun flow rates, which they are doing.
Sorry all your Christmas's did not come at once and your selling out on Monday may still prove to be the best move... but I am staying in.
I like alot about this company and the people running it. Plenty of experiance and a pretty good track record of finding Gas.
They may have Initially missed on M#1 but you want perfection, this is Oil&Gas, now that aint going to happen now is it.
BUR Price at posting:
5.3¢ Sentiment: Hold Disclosure: Held
