LOTMSome very valid points in your post.The gas income did...

LOTM

Some very valid points in your post.

The gas income did surprise me, it was much larger than the oil income. Thats not a good sign but income is increasing.

The paydown of the $15 MILL loan happened prior to Dec 30. The breach notice was in March 2013. This suggests that the company has attempted to grow to fast with its debt facility and had to pull back. Its a concern that at March it was outside of the terms.

I made a decision to buy in on the chart fundimentals as so many stocks now have trading ranges.

Like you say it will be good to see a Share buy back notice, but it will also be good to see a small appreciation in the share price without the company support. iT WAS A BIG DOWN VOLUME DAY for the stock. hoping that is a signal of selling exhaustion.

I still believe the management need to make a statement about the breach to its shareholders. It looks bad if if doesn`t. The company income is approx $80,000 per day so they have some cash flow for new verticle well production.

Building a shale oil company in the TIGHT OIL sector is all about time and cashflow management with fraccing expertise. The risk of not finding income is low compared to other OIL companies. e.g. offshore