The big differencce between HOG and CUE/MEO is that nothing of the forward drill programe is factored into the sp. Investors now seem to be weary of drilling, because there have been so many dusters.
At the moment 201 is still on trainer wheels. Once the gas plant is built, the production could be doubled anytime HOG wished.
The present 5c / share net earnings, with possibly 10c /share, means that on that measure HOG is significantly under priced.
The real driver in these specs though, is reserves. Because HOG are looking at drilling a second well into the same reservoir it is assumed that the reserves must be 3 to 5 times the original.
I think in the release of the reserve upgrade will be the big driver of the sp, with or without the drill programe.
The big differencce between HOG and CUE/MEO is that nothing of...
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