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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: GeoDude who wrote (26699)	10/29/2003 6:20:08 PM
From: Ed Ajootian	Respond to of 206325

lost in africa, IOL -- Thanks for the comments. They used a rig that they own to drill this first well, it is not really designed to drill in the location that they used it for. They drilled a very small diameter hole, only about 3". The plan was to get a hole down at least as far as the secondary (higher) target and get enough oil shows there to get folks excited and get the stock price up, then raise some cash and get the right kinda rigs in to drill the rest of the wells. The plan succeeded. The drilling of Moose #1 took the stock from C$20 to over C$30, and they took advantage of this and did a substantial equity raise at $C32. Now they have all the cash they need for the drilling of the rest of the 16 well program (up to dry hole costs). This Moose #1 well cost a lot less than it would have if they used a better rig and paid day rates. Even if this first well ends up not being a producer it is a tremendous success because it brought in the cash with minimal dilution. Overall they approached this somewhat unconventionally but in a good way, IMO.