this could be xmas in april, page-12

Guys

Thanks for the various responses and sorry not to have been monitoring the STX thread today. Been otherwise occupied, and what time I did have I devoted to a couple of my other stocks...

I am very encouraged by butcherano's and xsmangos's comments about the language used in the announcement and I guess I understand there would be limitations on interpretation of mudlogs etc. The seal being intact is fundamental, as is the reservoir quality. I am anticipating the latter to be likely ok, bearing in mind there are nearby wells accessing the same formation.

I have a lot riding on this one, and bought some of my holding at 33/34 cents (as well as some as low as 20c). I am reasoning right now that the price still looks a terrific entry for an investor who is not holding.... because of the following:

. the company has just raised capital to drill not only this, but the next major well also (Rayburn), therefore no discounted placement unless there is success here (for development costs)

. the company already has a sound cash flow activity and the US gas price appears to have stabilised at a reasonable level

. the upside potential from success with this well/field is staggeringly large for a company of this size...and there is another well of bigger proportions to follow.

I was able to buy into the initial Texas success at a ridiculously cheap price because of other investor apathy about the gas shows. That gave me a great return and I am sorely tempted to ramp up my holding even further right now because it looks a very similar situation. But I am resisting, and in any event the market is being extra kind atm so all cash tied up.

I am quietly confident we are onto something big here, but we have to be patient and keep fingers crossed....downside/upside relationship looks favourable.

regards
DF

ps...Afroboy, I couldn't really tell from Simon Ashton whether he was ecstatic or not. He does play the cards close to his chest. I took the opportunity of saying that they have a great partner in Cypress and he agreed (but that was all).