Universal Energy Corp (UVSE)

[eddy2]

Mmmmm the trouble is she is stuck in the ground and no
money to drill and remove it. The liability to remove the gas is about as much as the gas asset is worth. Liability comes in many forms and a lot of times it's an estimate. The thing is do you drill
more to add to the reserve to warrent the liability to take it out of the ground or jam more into the ground for storage at these cheep prices off setting the cost of extraction down the road lowering the liability and increasing the asset value should the prices come up.

This takes capital and again your increasing the liability to where it exceeds the asset value and this is bad for the stock for sure.


Can't say if it has been a good move. The cost of servicing debt is cheap at the moment but there is a threat of rising interest but inturn it should push up the intrinsic value but time is not on our side for sure.