Thanks for the update on LEI. In my notes, the previous presentation was 9/09.
I have a comfortable position in LEI. I've doubled it now before the close.
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NAV. Does it make a difference, pre or post? Only if the company pays income taxes. I don't know if LEI does or will, given all the tax breaks that oil gets.
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Negatives are as you state, are they finding and getting oil, or is there too much water? (Talking about LEI's au courant Eagle Ford involvement, not LEI's prosaic work-over of old wells business)
Positives could be, per Lucas, that they're in the desirable oil section for fracing in Eagle Ford. Lucas sold the "deep rights". Not sure for how much, if all, or under what conditions. Not sure how deep deep is, but deep is where the action is, and where the fracing is being done. LEI retains a 15% working interest in first two wells. I guess good results with even 15% might be enough to help the stock of such a small company. (Has helped the Australian shale oil stocks.) And the structure of the deal with Hilcorp seems to be such that LEI is not yet out of pocket (on these first two wells).
Stock is undervalued based on NAV. May also be undervalued on flowing barrels of oil they expect to produce this year (Not exactly clear to me how many barrels that actually might be.)
Jmo.
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