this weeks blackboard special- besbs play..., page-30

re heating up:

This stock's fundamentals have been heating up for a while as well.
It is rapidly reducing its cash burn and should turn cash positive pretty soon.
The Leighton prospect for which it has a 15% stake, is a dynamic pipeline of new wells. Currently at well no 6, there is another possible 24 wells in this field, with new wells coming into production at regular intervals.
A quick look at the ANNs titles gives an indication of the brisk pace that these are occuring at.

Plus a big bonus coming up on a deeper play into the Eagle Ford which has been tested with a significant show and a strong producing history in the nearby region.
This is being programmed for the 3rd quarter, following more wells in the Leighton development program.

What makes this play attractive for my money is the reduced risk exposure to the latest Ugandan Well.
Reason:
The last well caused the SP to spike up around 29c and because it was a duster the SP collapsed back quickly and lost its following.
The cashflow from the Leighton field at the time was still to be proven.

This time is different.
The Leighton field is accelerating (cashflow and new wells) and a huge bonus payzone has been tested and coming up in the Eagle Ford.
Hope this info is useful to anyone new looking to develop a risk/reward profile.
It certainly helps to mitigate the past, which will undoubtedly rear its ugly head (on HC) as things get HEATED UP.

Cheers to all.