Well it was management confidence in their discovery that brought me in here in the first place. They said something like the well could lead to significant oil and gas production if successful, that was after the well had been fully logged but before testing. It suggested to me that they had encountered both oil and gas in their logging, possibly live oil and high pressures too. So I thought it worth a punt. Since that the well has come in above my expectations and my posts around the time would have suggested 2,000-3,000boepd production as a possibility just from this initial test result. I'm still confident of the well being brought on at this level once it has been allowed to fully clean up with the choke eased back and more of the pay exposed. I believe at this point that the managment's sentiment is achievable at this time so I'm loading up to get additional cheap shares from the offer. I read somewhere too that there were up to 4 wells planned on Smith to appraise/develop this discovery. If they come in anywhere close to the suggested potential of this first well then it will be a mutlibagger this year regardless of Puntland. The reserves alone from Smith could be worth twice our current market cap, let alone production. I'm eagerly awaiting the results of this well and to see how much more potential they've opened up. I'm not suggesting that this is a no brainer at the moment, but it looks like very good potential, a lot will be riding on the results of Smith-1. My confidence is based on well results to date (from the news releases) and management's tarting around/promotion of the company since, they feel they have something to say at the moment. I have put my money where my mouth is on this one, but I do have a diversified portfolio of oil and gas producers and explorers.
Captain Nelson Forties
RRS Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
