If you compare the share prices of ETE and STX and compare the companies its hard to see the reason in the difference in price... the STX forum speaks of up up up to 80c even to $1 in the coming months, what needs to change for ETE to get to that stage?
The difference between the two is errrr.... where so we start?
* Rayburn prospect with potential to contain "multiple of 100 BCFs of gas" (see their AGM presentation), and hardly any value has been priced in despite three successful appraisal wells and a four stepout well being drilled. Flow test from first well should give market some comfort about its cash generating potential. if successful, their revenue is set to increase from 8.6 million this year to over 20+ million next year. Their stake of this discovery is 17% NRI.
* Hybrid Energy - to be spun off this year with distribution to shareholders
* Mesquite - generating revenue of 8.5 million last year
* Have a few extra prospect on trend with Mesquite and Rayburn.
I hold both stocks, so am equally optimistic about their long term prospects.
618
ETE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
