Could I have gotten them for $.50? I looked several times yesterday and the ask was at $.65 if I recall. Also the spread is so goddam large on the 20's, if things turn negative for some reason I would be nailed big time.
Ed; The company has had 19.7 millon expense for dry holes YTD; 7.4 mill in 3rd Q alone. Thats the only "negative" I notice.
Positives are 1) very favorable hedges going forward 2) .33 Debt/equity 3) 1.7 CR 4)reasonable production costs 5) Xcellent product prices 6) sells 3.6x est '03 cf 7) 11% sequential prod. growth (34% since 1st Q)
Here is an interesting fact: TMR had 8.3 bcfe 3rd Q, 30.5 mil total CF or $.39 CF/share; REM had 9.53Bcfe production, $25.8 mil CF or $.92CF/share. Similar companies production wise. Big difference in share price based on dilution of TMR shares.
I like MHR, REM and WZR. They collaborate in deep water GOM. MHR looses its terribly onerous hedges in 3 weeks which makes it more attractive to me than previous.
3 of REM's wells that are due to hit TD soon are deep shelf wells and one is targeting a massive salt dome structure onshore Mississippi. These wells are targeting about 175 BCFE net unrisked reserves. If REM hits 2 of these and misses on the other 2, any thoughts on how the market would react? TIA