No expert here OPM, but if it is assumed the Ellenburger flows are prodigious, then going on what was described in the investor preso
"Unless the Ellenburger is completed as a producer, a fracture stimulation of the Hybrid will be completed as a “Proof of Concept”"
which I interpret as
(a) both project TC & MS have "good" resources defined, leading to strength in SP, leading to conversion of options, leading to less likely dilution
(b) gets tricky now because as you look at project timelines - no gas sales until mid 2013 (and thats from TC). Clearly looking at JV (IMO) for funding post the resource definition.
(c) trickiness is because we haven't determined worth of Canyon Sands Hybrid play. Maybe JV will just be for Ellenburger to get funds to drill and appraise CS in a separate area???
Classic risk/reward. Down to wire for sure.
CEL Price at posting:
10.0¢ Sentiment: LT Buy Disclosure: Held
