"Interesting thing is that,, because down hole logs were shot,, the company should already know the extent of these structures,,, but we don't."
Same ole story with AZZ: shareholders are in the dark and mushrooms!
One thing is for sure, this current well really is the company maker/breaker for AZZ.
Without some substantial flows and the IMO it is the end of the story for AZZ. The other question is can the current crop of wells support the current market cap and debt that they have? Or even with a decent flow will it sustain the company?
How mnay bcf do they need to make the market cap of the company in NET profit?
I really think that they went about the entire process in the USA in the wrong manner.
They should have taken that money from the sale of the Turkey assets and bought a small to medium sized company already with production or a producing property and used that as a basis to expand and gain knowledge. The price of oil/NG was much cheaper back then and they could have probably got a very god buy and the share price would be much higher now!
((Of all the things PSA has done recently, they FINALLY got smart and did exactly that. IMO exactly same scenario there as well.))
Instead AZZ blew millions of bucks on a bunch of cra pola and are now facing a bleak future unless the current well comes in gangbusters.
IMO they are lucky to get ANY money for the Oklahoma assets. The only way they could flog it was to get another company to buy it through and IPO and you know what they say about fools and their money.....
It was for sale for months and that broker site and it appears that they couldn't either an offer or one that was decent. Tells you alot about the quality of the asset especially given the current environment for oil and gas prices in the USA.
AZZ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
