Yes the news is disappointing and not what we had hoped - but it should be made clear that these are only TEMPORARY flow rates. Those posters making projections over the next 50 years based on these flow rates are either grossly misinformed, or are using scare-tactics to get back in at a lower price. As per the announcement - there is a LARGE UPSIDE POTENTIAL for improved flow rates following the second frac - this should occur in the coming weeks.
Also - given Highway71 is a turn-key drilling contract for TEX, I don't expect any additional costs to be incurred by us because of these delays.
To me, the drop in price is only a reflection of the number of short-term, speculative traders onboard this stock. My chart analysis last week pointed to the completion of a symmetrical triangle (an indication of uncertainty in the short term direction of the chart) and traders got their signal to sell yesterday. The chart will find support and start consolidating above 4.5c in the coming weeks, and establish a new base from which to launch the next leg up.
TEX Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
