""i sort of get"".
firstly make no mistake "small, medium institutions" will be following this stock very closely.
word spreads quickly about a company having 22+ TCF of gas resource. it's worth noting we haven't as yet seen any insto's jumping on board..!!!!
most of them do have smart analysts whom understand the type of plays such as AJQ.
I think they played the cards wrong with the first well. it wasn't cheap by any means. especially when you bring in companies like Halliburton.
thus the cost V's flow rate wasn't the best, probably not economically viable. thus we haven't seen them being used over the more recent drilling.
I think they hintered at that in one their announcements.
AJQ have gone back to square one.
they are now only drilling vertical wells to test the waters.
they'll gather all of the data from each well. things don't really change that much when you are drilling the same formation one after another. maybe slight difference in heights etc.
once they've got all of that data, they can use simple mathematical equations to workout "distance for lateral well and approx number of fraccing required for each well".
some mention of PSI numbers seem to me too be on the low side.
hopefully the numbers will support commercial wells.
in terms of oil shows. it goes without saying "they will encounter some oil shows" ie: condensate, as for an actual oil play by itself. i would suggest not on the cards.
there's a heck of work to be done before we know where we stand.
if the institutions smelt something hot, they'd be all over it like a rash.
at the end of the day you've got to have everything crossed.
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