I must say that I am rather dumbfounded by the recent announcement. Why would the company pay for a Stockwatch news release, and then write it up in a way that sounds either neutral or else almost like bad news. They mention getting 25%, which, unless you know what the potential is, doesn't sound like much. They mention that it will cost the company $4mil. They mention all the other costs that the company will have to pay, like the out-of-pocket reimbusements, royalties, and project management fees.
But not one word about any upside, like the potential of the 3d seismic, like the proximity to other proven large deposits, like the potential to bring in lots of new high output wells in the near future.
So why would anyone pay for an announcement like that? Even if one tried, I think it would be difficult to write something less promising or inviting to potential investors, especially those not already familiar with the company, which is what Stockwatch releases are for -- to generate new interest.
Mystified,
Hugh |
