what also is not too clear with BUR (and i think applied to NSE)...

what also is not too clear with BUR (and i think applied to NSE) is that if W2 and E1 are successful they go back and drill up to 8 wells into W2, and 20+ into E1

what we are seeing now (6 wells) is just stage 1 of the drilling program, one well into each trap to confirm presence of gas/condensate.

Stage 2 would then be:

-> 8 more wells into W2 which means Wilcox region makes up to 33mmcfd & 2.2m bopd = $35mil P.A

-> and if they put 20+ wells into Edwards thats $34mil P.A there


So stage 2 could result in up to $70mil P.A (peak as wells will decline, but at much slower rate to chalk/shale wells)


you would be silly to sell this if the first 6 wells are successful as the upside will get much higher next year.