That's right Marcel time to ride it back up, watch energy prices after the State of the Union Speech, the Demorats think they can manipulate energy until the next election boy are they in for a surprise, has anyone checked Russian Natural Gas lately its 25% higher than U.S. Prices and thats enough to bring back $6-7 dollar nat gas.
if they ever solve their problems the company and stock have long ways to go. Why hurry?
1. they have to take care of their nasdaq listing 2. they need to address their drilling program 3. they need to work on partnerships to increase Vega output 4. they should tentatively explore Mancos/Niobrara after having taken care of 1,2 and 3.
1. Yes 2. yes, but they had to have some capital to do that. Finishing the inventory of drilled but not completed wells has been a logical first step. Getting the new credit facility is another step. Now they need to focus laser-like on Vega and figure out what the program should be for 2011 and announce that to shareholders. 3. Partnership (like the one proposed last year with Opon) would be great but might not be possible until nat gas prices improve a little and a more comprehensive financing solution is achieved that solves the may 2102 callable debt and extends the current credit facility beyond Jan 31, 2012 and changes soem of the restrictive covenants associated with that credit facility. Best would be a JV that infuses enough capital to pay off the credit facility and the convertable debt and provides enough capex to start ramping prodcutionand therefore cash flow from operation. Don't see how that can be doen right now. 4. They spud a Mancos science well on Oct 12. they sure can't afford any more Mancos wells until they have a solid plan and most liekly a partner. They have to learn from that well, tell us what they elarned, and hopefully learn from other Mancos wells by ECA and others.