If Psi turns out to be right and his statements/predictions on well configuration eventuate then it will be egg on the face of the engineering team and management at strike.
I don't think that's a fair statement to STX - I haven't made any predictions that say the current configuration won't get there. On the contrary I think they stand a decent chance of getting there through sheer grunt, as I said. I like what they've done with K4 especially.
It's not ideal, and it did take 18 months longer than necessary, but if it works, who cares? As rexsh said, the most important thing is to prove to potential investors that these wells can get to commercial rates. Any investor worth their salt will be able to realise that a well that can struggle to commercial rates from a less than ideal pilot set-up is a very good sign for what the wells can do in a development situation when 20 or 30 wells are all shielding each other.
True value in the stock market comes from identifying the implications before others do. Right now the market thinks STX is struggling, like that broker who said STX is "likely to end in tears." But there's a decent chance that the reason they are struggling is because they're dealing with highly productive wells that in a development situation will be corkers. They made some mistakes in hindsight, and I would have done things differently, but they're professionals and they just need to work out a formula that works. That could actually mean we all get a chance to buy shares on the back of strong evidence the play will work, but before the market wakes up. That's a pretty rare opportunity.
But I'm getting ahead of myself... let's wait for the evidence first.
STX Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
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