That was a disappointment!!
The next stop is the B24/25 horizon which according to the original Moyes report should be one of the richest gas/oil lodes in the lease...
Lets hope reality mirrors the report....
Of course if it does then HOG should scream out of the blocks. If it doesn't
1) It would severely test investors faith in the original reports
2) BUT at current prices the stock is still heavily undervalued recognising the existing cash flow and recognized reserves in the Sorochynska field. And lets remember there will be a second drill that will double cash flow in around 8 months. And there is ample funds for this drill. Rationally it just couldn't fall any further. (But it almost certainly would..!)
I suggest the real bargain for HOG could be if there is a sizable strike in the B24/25 /26 horizons and the market doesn't adequately recognize the value. HOG is currently 18c. A jump to say 30-34c would appear exceptionally good percentage wise but would leave the stock at unbelievably low PE ratios.
All IMHO of course .
Lets look forward to a good New Year .
29th Nov Investor Presentation says:
B24/B25 carbonate section
Flowed gas at non-commercial rates in 4 wells in the area
I doubt this hole will produce.
Also they will need to fund a gas plant at some point. Will we see a cap raise soon?
I think you have the wrong end of the stick here trendline. According to the initial studies and repeated through the various research notes the B24/25 horizon is anticipated to have the biggest reserves. (Or course they actually have to find them .)
The gas plant is relatively cheap. A few million I believe. HOG has $15m in the bank and is cash flow positive even while paying for the Chets drill. They make a point of saying they have sufficient funds for the 2012 drill and construction program.
Cheers
http://www.hawkleyoilandgas.com//me...note-184/Hartleys-research-note-October20.pdf
HOG has clearly said surrounding wells near Chernetska-1 are non-commercial.
http://www.hawkleyoilandgas.com//me...sentation-194/Investor-Presentation-Nov11.pdf
Also this drill location was selected for the B20 not the B24/25 and this adds to my view this well won't be a producer.
Edit: Hawkley apparently regard 4 non-commercial wells, no matter where they are, as a positive.
Another disastrous stock followed by fundies looking for the slightest bit of positive spin.
Trading/investing on hope wont return consistent profit.
Technically HOG shows no signs of reversal to the up side.
Disastrous alright. Closed at 0.165 today. Shameful.
Not looking good does it? 'HOG' should be renamed 'DOG'.
Announcement out and a few buys going through.
Sorochynska Licence B18 Reserves Report
No mention of chets, perhaps that isnt such good news..
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?