The flows from the three zones at Horse Hill certainly have exceeded expectations. Would be really interesting to be a fly on the wall listening to any plans Magellan management has regarding the Weald etc. after the news today.
Horsehill 1 has recorded a flow of nearly 1700 bpd over an extended test with no indication of pressure evident from the zones tested. Plans for a horizontal extension are now being forwarded for approval and estimates of recovery rates are to be released from Nutech soon.
Let's manipulate the stock down 2-3 bucks before earnings so if OA, as expected, beats then the smart investors can push it back up tomorrow to where it was at the start of today.
Seems the market is really overdoing this small restatement of earnings. Unless there is something else wrong, this is really an overreaction from 90 to 77. Fingers crossed for successful Cygnus mission this month.
All sorts of statements about how much the area will or can be worth with horizontal drilling from this one pad or how few visible pads will be needed to fully develop the area with minimal disruption on the surface. Also some chatter about UKOG buying all or some of the stake of weaker partners or said partners looking to do something like secondaries to improve their financial condition. Of course it is all speculation. Anyway, we should be getting news on the second Kimmeridge zone very soon (perhaps in the next day or so) and then the upper zone which is expected to be the free flowing Portland sandstone.
Not sure the vertical idea is bad. Would you prefer that Cyanotech on supply raw product and thus run the risk of associated with only one level of the process while distributors and retail held the company hostage? I am not ready to give up yet on this type of organizational set up but I hope new management can right the ship towards profitability soon. I rather suspect we will not have the best news this quarter if he has been fired.
Investors can only hope that the switch from bulk begins to show up as bottom line profits in the near future. Mr. overall market is not going to make a rise in share price any easier either with all indices getting smacked again this morning.
Remember that we jumped from 25 cents to 1.30 while Horse Hill partner UKOG were lagging in the 1.3 pence area. They have now doubled from that level while we have drifted back to 1.03. I expect news from HH next week on the other two zones if they have been able to cement plug (block oil flow) the Lower Kimmeridge and are able to get to testing the other two.
The company could report a good quarter with positive earnings and the overall tone of the market might still drive this stock down towards 4 dollars a share. I have no idea when we will reach bottom in this market correction but it might be some time from now and investors in Cyanotech will just have to be patient or through in the towel.
So now Magellan has UK leases and perhaps a few more shares in Central Petroleum Australia and, for a while, an off shore lease north or Darwin (if that has not expired). All obligations to West Texas Bank are off the books and management says this has left the company in better shape to pursue value for its shareholders.
And bang zoom down again about 3% this morning. I am getting so tired of the BS about base building for the big push. OA cannot seem to get past 88 much less break 100 or higher.
They have to be coming pretty close to a much bigger bill than that first year's payment to West Texas Bank though. Perhaps they can negotiate again as WTB may not want an asset like Poplar on their books at this time.
OA sinks by about 5 dollars. What the heck is going on? My only thought is that there is suspicion that earnings are not going to match expectations.
Posters on the UKOG board were lamenting that investors in MPET obviously knew what was in store and were pushing shares higher. Why wasn't UKOG et al smart enough to see the same thing they lamented.
95-100 will have me bidding adieu. I have held shares since before their first Pegasus launch and have been very fortunate to have a nice profit. Do not want to be a hog that got slaughtered as the old saying goes because I got too greedy.