They definitely need a lot more money before they can be a producer or even enter into a drilling campaign that does justice to their entire holdings. They have entered into JV arrangements and are looking to bring more partners into assist them as they attempt to build resources. In relation to the gigantic Perdika Basin coal deposit that has been the subject of recent releases and much HC speculation, I think I read that they have chosen to keep this to themselves. I could be wrong on that though, but anyway I would love to see them drill the resource this year and confirm it to a level that makes it saleable. It's such an enormous asset that it might be worth a significant amount per share even before it is proved to 2p standard. Given that they will if sufficiently funded, drill 10 wells in the Perdika this year, I believe that this option is a distinct possibility.
If successful they would be cashed up to a huge extent and able to explore the rest of their holdings without needing to release more shares or sacrifice large percentages of their holdings to farmin partners. I think such a sale would see them well set for good. Clearly they make take an entirely different route.
As far as the buy price is concerned, it depends how long you want to hold, I don't see it as that good a short term play, but if you're willing to hold for the rest of this year or longer, then it hardly matters if you get in at 9, 10, 11 or 12c.
CTP Price at posting:
9.5¢ Sentiment: LT Buy Disclosure: Held
