Comments on: “Tiny Oil Stock, Drilling in the Hottest Region” Penny Oil Speculator http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 05:52:09 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: cdchi1 http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html/comment-page-1#comment-5221 cdchi1 Sat, 13 Sep 2008 12:53:27 +0000 http://www.stockgumshoe.com/?p=537#comment-5221 I suggest the penny oil speculator should stick with pushing Eromanga Hydrocarbons...as you mention in the article, ERH is well off its highs (As are most juniors) but it is entering a very exciting period. Initial flowtesting results from their 430 project (40% ownership) last week are very promising, and Im expecting a positive flow test announcement on Monday...could be upward of 400bpd (you do the sums). OK Ill do the sums for you...if 400BPD (and thats the fluid they recovered in initial test based on 5.7 barrels over 20 mnutes), thats around $14M per annum, or $6M for ERH share (using $100 AUD oil price -its actually around $130 right now but im being conservative). So what? Well thats on a per well basis...430 is looking like around 40 million barrels (again conservative)...so that could justify 15 or so wells. So thats around $90M revenue...! And then theres 330 (development plan is 2,000BPD and 430B ;-) Fully diluted ERH has a market cap of around $60M...but fully diluted that also means they would have around $50M cash in the bank (due to oppies conversion and conversion of converting shares)!!! So you are getting the oil production for free at current prices. Cdchi1 I suggest the penny oil speculator should stick with pushing Eromanga Hydrocarbons…as you mention in the article, ERH is well off its highs (As are most juniors) but it is entering a very exciting period.

Initial flowtesting results from their 430 project (40% ownership) last week are very promising, and Im expecting a positive flow test announcement on Monday…could be upward of 400bpd (you do the sums).

OK Ill do the sums for you…if 400BPD (and thats the fluid they recovered in initial test based on 5.7 barrels over 20 mnutes), thats around $14M per annum, or $6M for ERH share (using $100 AUD oil price -its actually around $130 right now but im being conservative).

So what? Well thats on a per well basis…430 is looking like around 40 million barrels (again conservative)…so that could justify 15 or so wells. So thats around $90M revenue…!

And then theres 330 (development plan is 2,000BPD and 430B ;-)

Fully diluted ERH has a market cap of around $60M…but fully diluted that also means they would have around $50M cash in the bank (due to oppies conversion and conversion of converting shares)!!!

So you are getting the oil production for free at current prices.

Cdchi1

]]> By: ponce http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html/comment-page-1#comment-5216 ponce Sat, 13 Sep 2008 07:20:37 +0000 http://www.stockgumshoe.com/?p=537#comment-5216 A few months back there were blogs trying to identify Painted Pony as the small company being teased doing exploration in the Bakken. I commented then being amazed why small investors were paying $8 for a $4 stock. At the time, the 5 investment bankers paid only $4.32/share. Now that the stock is less than $4, those small investors lost more than half of their money. There was too much hype and too many suckers. Be more cautious next time! Good luck. A few months back there were blogs trying to identify Painted Pony as the small company being teased doing exploration in the Bakken. I commented then being amazed why small investors were paying $8 for a $4 stock. At the time, the 5 investment bankers paid only $4.32/share. Now that the stock is less than $4, those small investors lost more than half of their money. There was too much hype and too many suckers. Be more cautious next time! Good luck.

]]> By: stockcrazy10 http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html/comment-page-1#comment-5207 stockcrazy10 Fri, 12 Sep 2008 17:34:18 +0000 http://www.stockgumshoe.com/?p=537#comment-5207 Thanks, Pilgrim! Thanks, Pilgrim!

]]> By: The Pilgrim http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html/comment-page-1#comment-5206 The Pilgrim Fri, 12 Sep 2008 17:22:05 +0000 http://www.stockgumshoe.com/?p=537#comment-5206 BEXP is the only Bakken stock that appears to have a current "bottom" - and I'm not sure I'd trust that one. Naked shorting of these thinly traded stocks is completely out of hand. Made a bunch with BEXP and NOG - lost it all on ROYL which should be the target of an SEC investigation but I guess ROYL shareholders aren't in the SEC's rolodex like favored financials BOD's. BEXP is the only Bakken stock that appears to have a current “bottom” – and I’m not sure I’d trust that one. Naked shorting of these thinly traded stocks is completely out of hand. Made a bunch with BEXP and NOG – lost it all on ROYL which should be the target of an SEC investigation but I guess ROYL shareholders aren’t in the SEC’s rolodex like favored financials BOD’s.

]]> By: Big Mo http://www.stockgumshoe.com/2008/09/tiny-oil-stock-drilling-in-the-hottest-region-penny-oil-speculator.html/comment-page-1#comment-5191 Big Mo Fri, 12 Sep 2008 01:34:47 +0000 http://www.stockgumshoe.com/?p=537#comment-5191 Gumshoe, you state, "If I were to invest in this one I’d want to dig a little deeper." Actually, if I were to invest in this one, I'd want Painted Pony to dig a little deeper, too... Gumshoe, you state, “If I were to invest in this one I’d want to dig a little deeper.”
Actually, if I were to invest in this one, I’d want Painted Pony to dig a little deeper, too…

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