like any placement in a hard market you are going to get people...

like any placement in a hard market you are going to get people take it for the quick trade. This placement came with an option so if you took stock and got an option why would everyone hold their stock? Always get the people / investors who will trade out in the hope of a free option. Look at WEL. Same area ( 20-30km apart in Tx). IPO, traded to just above IPO price and with lack of news and bad mkt they are drifting. No news is always bad news. these guys have (PYM) three bites in a short period of time. If they make one good well of the three that kicks in post IP rates at say 50 BOPD ( 50 x $85 x 56.25% (after payout)) will equal on my count close to $900,000 pa in revenue to PYMs account. That's if only 1 or 3 wells work. But the thing about getting at least one well to work is that what they do will be repeatable. Each well they drill is a further unlocking of the key in how to develop their acreage. They have a lot of acreage. The other thing I find really interesting is that they have in all the literature not paid a great deal of attention to the Cline. Its all been about the Canyon Sands. Now they have drilled well # 1 and the Cline which was not the primary target has shown a good result post logging. Its a free kick really. So they can co-mingle the Cline with the Canyon. I'm working through the TRRC website to see what the IP of the Devon wells (horizontal) have been. Given Devon are right on the border of the PYM acreage I think there its possible to get an idea of a min IP pot flow rate.

Anyway, interesting time for this company. Interesting time for a lot of junior O&G Plays....especially those with an addiction to the more expensive big boy shale plays like Eagleford/Baken/Woodbine etc. The economics of some of the thinner oil windows will be worrying a few comps Ive been taking a look at lately.