Significant hits in the upper canyon sands, which by all accounts will upgrade the pre-drill prognosis.
Primary target yet to be intersected and with the upper zones appearing to confirm the pre-drill interps AND being gas charged, it is looking like a fair risk/reward equation here to me.
Wireline logs to be run shortly, so not that long to find out about the wider than anticipated, gas charged upper sands.
I see a potential Company making event here...and if the luck falls her way we should see a major re-rating type of rally.
Add to the mix an "incentive" for sophs (lenders) to get the price as high as possible (options bonus), and the stage has been well and truly set for an interesting period ahead.
211m shares on issue (fully diluted), of which some $18m will be cash re options exercise. Cash at hand cancells out the loan facility, so we end up with an enterprise value of approximately $13.65m based on a share price of 15c.
Plenty of room to rise on the right news here...and this is based on just the Tripple Crown project...no value at all placed onj their other assets in this equation.
So...worth some exposure in spite of the rise in my view, but in full knowledge that these sorts of plays can go either way.
The downside does seem a lot less than the upside here though, so on balance she is an attractive risk/reward play to me...but as we all know, no risk, no reward.
Cheers!
CEL Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
