The Flow Test will not be a quick answer to define the new reserves. The letter indicated a lot of work might have to be done to enhance the flow if it is not as expected. A Mud blockage fix or more perforating or measures to enhance permeability of the reservoir might be needed. Also, natural gas prices are a big concern. Unfortunately this new gas supply is being added at a time of exceptionally low prices. So the stock could still have downside despite adding reserves. Long term it should be a survivor and low cost producer, that should be bought at prices below the near $16 convertible stock issued to finance the ultra deep development.
It sucks that this board is getting more and more filled with people not doing their DD. If you really follow MMR, how on earth did you not know that this letter was realeased in the middle of the day well before close? Not sure which is worse, more questions from people that have not done any research, or more poetry. Makes me more thankful for those posting great info, it's just harder to find these days. Good luck to the longs that have put in their hours on this one. All I can say is there is a perforation date set, but I will not say when. Last time it was scheduled, it was pushed back. There are some guys ready and on call.
Im very long on mmr but I think every one who is figetting about the test on dj1 is going to be astounded by how little MMR pps is going to pop on the final news. Im just looking for a point or two. Ive said it before this is a long termer-no one is going to get rich off of this one issue. I do hope I am wrong!!!!
The letter really had nothing new to say. Everyone has been clamoring for some statement because there had been no news for almost a month and JB gave us that yesterday. It all comes down to saying, "Things are still moving along and we'll see the test results in a short time - don't worry."
I don't expect a lot of movement as a result of the letter alone. I do expect a lot more discussion on this board about hidden meanings in the wording. *sigh*
FWIW- After speaking with several Analysts yesterday and this AM, consensus, and I believe on this board as well, is that JB is about to or already has lit the fuse!
and let's hope for any!!! update on how it's going...