I think we need to keep things in perspective. Firstly we should be much more advanced in the drilling program by now but for the unceasing rain which has been frustrating beyond belief. Secondly markets have been trashed by events in Europe. Companies like BPT and SXY are much more advanced than EXE and yet their SPs have suffered a similar amount of trauma as EXE this year.
Then we need to realize that not everywhere in the EXE leases are going to be productive....in fact the company themselves have said that the plan is to find the sweet spots......but if results at a particular site are not spectacular then we are hardly likely to get one of these "Sancho is a useless dud" instead we get headlines like "Drilling complete at Sancho". If there was something of note at Sancho or alma or darr I am sure they would have highlighted it in the announcement heading as they did with Bessies and Katherine and Euston. Speaking of which, have a look on the map below. Bessies, Katherine and Euston form a nice little triangle of positive results so testing Sancho as an extension of that was a fair bet IMHO. I will be interested to see what they turn up at Rocky creek 1 and 2 and silver fox and fittleworth and scotty creek.
I am sure that Sancho has not been a complete waste and they will have gained some vital insights from the drill. What I was happy about today was to see 2 drill rigs now operating in tandem FINALLY with a sunny forecast for the week ahead. But probably most importantly is that we are seeing a return to Katherine...some good flow rates here will be a game changer.
EXE Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
