Rick has some cred in the oil and gas industry. Unlike John Hasleby, Rick has practical experience in this arena.
Provided there are no "technical" drilling issues like last time, this will be a winner.
Trip gas of over 5000 units equals 50% gas! This is an excellent sign indeed. So is the use of heavier drilling mud. So far so good, the drillers seem to be switched on this time.
220BCF is on the high side of what Golden Eagle holds, but if GDN comes up with the goods, you will be looking at 10x the current market cap ~ $440 mill in-situ value (conservative).
Then there is the blue sky possibility - remember the 3TCF elephant in Leadville???
Well....you just never know. It's good that management are not spruiking this, but the initial research and seismic studies still stand.....just a matter of location....lets hope PB2 is near the monster and we avoid water level.
Though we have lots of hurdles to overcome yet, with every formation and new gas show, the risk is diminished.....
Lets see what news awaits us on Tuesday morning.
All the best!
GDN Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
