update

A bit of clarification with respect to their prospects:-

The D&L#2 well is already producing from the "N" sands. This would be the estimated 5 MMBL.

After they complete this, they will be recovering the oil from the "M" sands, which is the 41ft of net pay, estimated at 300 MMBL.

I think alot of people are forgetting they have this well producing already = immediate cashflow

The D&L#3 is an undip well remember, the purpose of this was to target the gas in the "M, N, Stray and O" sands, total estimate of 6.95 BCF. They weren't targetting oil on this well.

Interesting also, they have already stated, "The high permeability and porosity of the sands indicate potential flow rates of over 4,000 mcfgd in the D&L #3 well resulting in significant cash flow generation."

Given they have encountered an unexpected and potential "S resevoir", it may be reasonable to expect an increase to the estimate of 6.95 BCF of gas for D&L#3.

As for the issue of the stuck drill bit, this may be due to the pressure of the gas or have something to do with the unexpected "S resevoir". I got an email just before from someone who got in touch with Mark. His comments on the issue were:-

"We should have more information overnight that the drill bit has hopefully been freed. If not we may need to sidetrack and redrill about 900ft. This may result in an extra 3-4 days of drilling.

I don't see this posing much of an issue if only 3 or so days of addition drill time.

In addition to this, we also have:-

- La Posada drilling at 13,150ft
- Abita Prospect due to spud 15 May
- Maq Bank as substantial shareholder
- Instos in @ .006

Plenty of upside from current levels IMO. Of course , DYOR