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Gold/Mining/Energy : Big Dog's Boom Boom Room
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From: riskyinvesting12/17/2013 9:57:43 AM
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Gastar: I think today's well results are not appreciated by the market. The Hunton play in OK is turning out as one of the better shale plays in the US and it is still under the radar. From a friend this am:

GST - Announced flow rates on Mid Con 7h well in Kingfisher Cty OK. Well flowing 906 boepd 24-hour peak rate and averaged 782 boepd over the subsequent 17 days with 60% oil. Important to note that this well is flowing naturally with no artificial lift. 4 of the last six wells in the Hunton play have come in above the type curve of 608 boepd ip and 436k eurs. This well cost $5m. The Midcon 8h is flowing back and the 9h is drilling. The first 2 operated wells Burton 1h (80% working interest) is flowing back and Townsend well (100% working interest) is drilling and nearing completion. GST interest in the Hunton play consists of 123k net acres with two zones the Upper and Lower Hunton viable at 80 acre spacing and 320 acre spacing respectively plus a possible Middle Hunton zone. GST Kingfisher Cty acreage also overlaps the Meramec formation in NFX's STACK play. Again I think if GST can operate on their first 2 wells...this will derisk a large portion of their acreage...and that could push NAV's higher!!! We are owners of GST here.

Having flow rates of 782 boed over 17 days with no lift is really a very good outcome. I think it is easy to see 100 million barrel production potential across their acreage. Add in the Marcellus and I think GST gets to a double digit stock. I see EV of $1 billion. I think it is worth a trade, though keep the stop losses tight!

Risky
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