I went back and read the January presentation in conjuction with...

I went back and read the January presentation in conjuction with the recent quarterly. Together the documents make more sense. Reading between the lines and with a few assumptions on my part....

1) Leasing
They spent about $2.5M in Dec quarter and intend on spending another $500k. I would imagine $3M would at least allow them to get another project as big / bigger than Snake River.

2) Production
Currently about 1000. Superfially, its disappointing to be targeting 1600 by year end. The 600 increase is equivalent to 12 wells at 50 BOEPD each (their stated average). They can drill 12 wells at 2 per month in the first 6 months of the year. Its my contention that they will do this at Snake River and them move drilling activity to their new aquisition. Hopefully Snake river is HBP (or near) by this stage. The fruits of drilling the new project will not be seen ths year re: production.

3) Reserves
They hard a March 2013 Reserve report with nearly $200M NPV for 1P reserves. This was off 19 wells. There will be 40 wells by Mid year which should provide for a very substantial increase re: RBL funding. They have stated they are doing a Reserve report at 31st Dec (approx 30 wells) but its likely they will do another with the RBL application. I believe the RBL will be big.

4) New lease
In the north. Perhaps a JV? They said it will take some time to get gathering infrastructure up and running so drilling will likely not translate to production numbers for some time. If snake river is HBP, I believ all their efforts will be at the new lease and they will probably be drilling 4 wells per month funded by the RBL, cash in hand and production.