618/brisboy,my take is that he is used to hunting large...

618/brisboy,

my take is that he is used to hunting large oil/gassies.

what he is perhaps failing to understand is the differences between onshore and offshore exploration and production. STX is next to market, has low exploration and drilling costs, high margin producer, close to infrastructure, and rapid time to production.

If you consider what an offshore oiler has, they have much higher exploration costs, longer time frames for exploration, much higher drilling costs, variable margins, high capex for production and pipelines, very long lead times for development and eventual prodcution. Then evenetually...they get some revenue.

This is the fundamental difference why STX targets are much smaller and their reserve base is also smaller.

The low hanging onshore fruit are gone; even shale is getting pretty prohibitive because of rig costs and tough competition.


PEL96 is prospective and also shares some of these characteristics. Success here would be quite transformational for the company. I am pretty disappointed with their progress down there.

Anyway, heres hoping we get something in the next few weeks on Deerslayer. Looks to be able to add a substantial amount fo value to the company!

Cheers,

SF