Good point miningnut. If we take into account the NRI of 3.7%, then net daily production (at gross of 60mmCFpd and 600boepd) should be around 392 boepd.
Compare their market cap of 25 million to those of STX (56 million MC with prod of 300boepd) and VPE (42 million MC with prod of 450boepd), I'd dare say that ETE's MC would be closer to 40+ million when production begins in July - a 60% increase from where it closed today.
Why aren't we there yet? Development/Prod Start-up risk. Think of Hardman with Chinguetti, Beach with Baska, etc etc etc. One just never know how the reservoir will react when it's being drained at a rapid rate. of course, this being a gas reservoir does reduce the production risk significantly because gas is much more volatile and doesn't require as much pressure support. Time will tell, as always :)
618
ETE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
