They are obviously really bullish on the EFS play. They have done well to capture the acreage they have. And who knows what else is in the pipeline (so to speak).
The testing of FD2 should be quite interesting. Seems to me they really want to produce from the vertical? I don't think they want to drill a horizontal EFS at this stage.
If they are really going to get a decent % after payback from the petrohawk assignment area (without cash), maybe they hope to concentrate on verticals in the edwards area in the immediate area and wait and see how the EFS play progresses around them.
D457 should be getting close to completion? Will be interesting to see how much data we get from it? Is the petrohawk Qtrly released tonight?
Worst case, they can always assign more acreage to petrohawk which will avoid serious capital raising but which will produce cashflow (dilute assets rather than increasing liabilities or diluting equity)?
Regards, Whippet
AZZ Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
