Everytime they drill they find oil. And the well is producing 3 days later. And it turns into a dud.
About 3 months ago they hired a new head geo and time is now invested in well preparation. I think this is where the problem has been all along.
I am expecting 250 BOE rate from this single well. After all, they intersected 300 ft of hydrocarbons.
As regards the slow pace it suits me fine. It ensures December options die out of the money.
On a different level I am expecting a spike in the oil price in 2012. USA is leaving Iraq, and Iran is going to start agitating along with their Russian friends who have built them an atomic reactor and a bomb to boot. (I have always been suspicious of earthquakes in remote areas of Iran).
Europe is in real trouble with the PIGS and I sense Russia will exercise its influence with a timely spike in the oil price just to show them who is boss and to win some concessions.
By the way, Russia and Iran export as much oil as Saudi Arabia.
Go figure.
AOK Price at posting:
8.6¢ Sentiment: LT Buy Disclosure: Held
