Have a look at some of the details surrounding any "Reserve...

Have a look at some of the details surrounding any "Reserve Based Lending" deal. I think youll find that they , the BANKS, require a high percentage of current and production to be hedged. In some cases as high as 100% . So, in effect NSE will be in some region of the 80-100% range. That means the spot mkt is around $80 bbl and they are selling for more like $100bbl. Also, interesting to not the release last week of the next two wells in the EF play to be drilled. They say verbatim " New Standard is also currently finalising an independent reserves report to expand its lending base and  facilitate the next draw-down of its enhanced debt facility, which gives the Company the ability to draw up to US$45 million to fund its Eagle Ford shale drilling program". To me this means a reserve upgrade is on the way. Positive news one would think? But probably not positive enough to move markets in the current environment.  I like what these guys are now doing. Moving out of an Australian pure focus onto an EF pure focus. The thing about this play is that over a period of time they should be able to get drill and complete costs lower and IP rates higher as they better understand the nature of their sections of the EF.  Not a short term game but a solid slow and steady strategy. Im not long this stock but will keep a close eye on it and how they progress.