The wait for news will go as quickly as my Xmas holidays seem to have gone, mid to late Jan we will get news about the second hole, likely another win but will probably need fracking as well.
Just my opinion guys but I reckon this is also pretty cheap again. Trading a tick above cash backing with the first hole hitting gas, albeit needing some stimulation to hopefully flow.
Hard to gauge recent trading with the light volumes but I think a presentation would go some lengths to maintain some of the Enterprise Value that Leyshon had priced into the share price early December, could be handy later on if they want to do a small raising down the track, not that they need the cash now, but its sure as heck better doing a raising at a premium to cash levels than the other way around, it also shows the market that these guys have actually got something good! Though Paul did say they would walk away rather than continue on after the 3 holes if its no good. If everything needs fracking I wonder if this changes the IRR, economies of scale and perhaps the need for more investment...? Probably not but a preso would still be nice and induce some confidence
Just my opinion, but I'd be surprised if we don't see a bounce from here early 2013
LRL Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
