Re: Basement Near
posted on
Oct 07, 2008 10:14AM
(Edit this message through the "fast facts" section)
Hey Jinxer,
Yeah I posted that IR a day ago I think. But I agree, even if it was $5M dollars worth, it would be worth it because we'll be a lot higher sooner than later. Jason said with the cash from the PP and the operating income, we are carried through all drilling on all properties to the end of 2009 WITH a $20M cushion. If they spent even $10M on a buyback, that would be huge for us and show great support.
I know credit is tight, but if we have enough to drill all the way to the end of 2009, the play should be well into its pilot program and we should have a good idea of what we have...and if we have $20M cushion, then it might be a pretty good idea to buy some shares back at around these cheap cheap levels. I could see the company really thinking about it.
Today, UBS gave the tsx a 13500 target...can't remember if it was for the year end or for end of next year...I believe it was for this year. Now it might be far fetched for this year, but once we start to get the $700 billion to the right hands and money starting to flow and interest rates cuts, then we'll see confidence start to get restored. It's all about confidence right now.
The energy sector has been hit so hard, it's mind boggling how much. It's like people are going to stop driving and stop heating their homes etc etc. We need energy and always will...if NG prices and Oil prices drop to far, then companies will leave it in the ground...well what'll happen is supply will drop hard, and then NG will go higher...so it's all supply/demand and NG is pretty low as is. The majors like Encana etc are predicting $8-10 NG prices for next year...lucky for us, we have cash and we have amazing economics.
Rocco:)