I understand there have been a lot of 'what if's' recently, but in all honesty, have a look @ their current production numbers, and what we are told is iminent in the next 3 months + any future production.
Past quarter production: ======================== Oil: 136 bopd (Does NOT include SRH 6H and 8A) Gas: 644 mcfd ($340,000 net revenue)
Near term production estimate: ============================== Aug & Sep fracs of Permian basin wells 1 & 2 (6H & 8A) The IP for these wells was substantial (379bopd from 6H), but in estimating, we will be conservative)
Current: 140bopd 6H: 100 bopd + gas 8A: 100 bopd + gas Bowtie west: Still cleaning up ++ more gas Cutlass West A #1: 60 boepd (@ the lower estimate) Cutlass East A #1: 60 boped (@ the lower estimate) Gas total estimate: 1.5mmcfd
total: 460 bopd + 1.5mmcfd
Future production: ================== 5H: 600 bopd GGP first horiztonal in permian is expected to commence drilling in September 2012.
ACADIA: 34% ggp ??
Lets assume that our PB horiztonal well, will be delayed until Dec 12. By this time, net revenue to GGP could be over $1 million per month. IMHO
Besides the spelling and grammar mistakes in the quaterly, I don't think all is DOOM and GLOOM for GGP, and now is our opportunity to take advantage of the fear, and accumalate at these low prices. IMHO.
GGP Price at posting:
1.1¢ Sentiment: LT Buy Disclosure: Held