sirknights fifty cents, page-4

This is a tough one to call SirKnight.

The fact that they are putting in a pipe before testing is quite amazing - I don't think I have seen that on a wildcat before!

This means one of two things - either the management are barking mad throwing money away - or what they have seen is pretty d@mn good and they know it will be commercial - though they haven't measured this they would know the gas content, the shut-in pressure, the thickness of the gas play and have a pretty good idea or porosity and rock type, together with info from other wells into these formations they should know roughly how it should flow - they may even have flared it briefly. I have committed a lot of cash (almost 5% or portfolio) on this in the expectation of the former and a short-term at least doubling in heads / trippling on options is not off the cards.

IMO there is much more to gain than lose at these prices - particularly on the options.