I have read, and re-read today's announcement. It looks like it was put together under extreme stress (it does not read well), and shows a reluctant decision to abandon hopes for the deeper zones. The reluctance is illustrated in the statement that "the lower section will be suspended in such a manner that it can be re-entered for the future test of the Pinkerton Trail and Leadville Limestone". Clearly, they still want to go there.
My feeling is that the decision was based on their lack of confidence about getting the oppies over the line given the reported drilling problems. Without a looming option expiry, I reckon they would have proceeded as planned to Leadville. So the decision today is all about funding and cash flow. Is it the right decision? I guess we have to wait until around June/July to see the testing results...
On another note, I hope that someone will dig up the logs from UTAH Oil and Gas (?) once they are submitted - I'd like to know if the reporting to the market was both timely and accurate.
Holding, but VERY badly burnt.
Disco
GDN Price at posting:
8.0¢ Sentiment: None Disclosure: Held
