PS This stock is trading at cash values $0.25/share - book values are higher at upper $0.35 - to $0.38. Although I was disappointed to see the recent ($3.5 M) write down of the African concession, I take consolation in this as a non-cash charge. My hopes hinge on EW participating in some more NZ wells in the future, if they can find the resources, until the Gazprom wells kick off later this year. I'm thinking any new Romanian production would be well situated given the current uncertainty in the Northern gas lines flowing through Ukraine!
They are due to drill one more well at Cheale North before the end of the year. Their 30% share is about 1 mil and they are generating enough cash flow to cover that without dipping into cash. I think we may see incremental production at Cheal in July & August as they were slow to complete a couple of the previously drilled wells.
It seems that Tags Canadian share volumes are picking up after the Waitangi spud announcement - somebody at UBS just bought 50K shares this morning. And there were 2 large buy-ins last week (about 80K shares thru Alpha)
Another well is being drilled at Cheale north later this year. Production there is running at about 200bopd (per last press releases, 250 boped including natural gas per presentation). At that rate they are at least taking in enough cash to cover G&A costs and their share of the additional well at Cheal North. Over the next year we will see results from some of the exploratory wells in Romania where NIS is covering drilling costs. Tag Oil just started drilling an East Coast well. We are not an partner in that well, but it could help prove the value of nearby leases were East Coast is a joint venture partner with Tag Oil,