So I was right in predict that they called trading halt to...

So I was right in predict that they called trading halt to evaluate the drilling results. Anyway I have never supported 300M price tag on current asset and a full development of the asset is the way to go.

One thing I notice from the announcement is that they managed to pay down the Macquarie debt facility down from 66M to 33M which wasn't in the Quarterly report.

If they pull off the Horizontal drilling campaign with good result I believes more buyers will line up and I don't believe next time price tag will be 300M...a full price tag for each asset block will be in the order of billion.

So interesting time a head, I m glad they made decision to pull out rather pass the asset for undervalue price tag.

I m sure they will graduate carry out this development using existing revenue from production (which is good size already) and not rust into loading the company with high debt level. May be next step of the capital management would be graduate cancel convertible notes from existing revenue.

33M return per year from existing wells compare with small operating cost is not a small amount. This good result despite a curfew in production line capacity enforced last year. Revenue should rise further this year with many new wells enter production. Management showed the ability to manage capital well that got my vote, the share price performance is just one part of the equation.

I m sorry for the disappointment of short term holder who were in for a quickie, but this is the way to go. Remember the director himself holding 10m of the shares so it s his interest too to get the maximum value for his holding.

So in 12 months the buyers will have to come back for double the offer! The consolidation is accelerating in the shale oil industry so we will see a fiercer bidding offers soon.