Phoenix Associates Land Syndicate (fka PBLSQ)

[tedwitt]

It is not the acquisition of the rig that will drive the price. It is what they will do with the rig. Other issue is what are they going to give up in exchange for these companies? Up side is that rigs are hard to come by and if you order a new one it could take 12 – 24 months and then you have to staff it. Usually company’s stock prices sink on the news of an acquisition.

Second issue;
I think PBLS has painted a pretty good picture of what they are going to do. Read between the lines. THEY bought leases. THEY bought a rig. THEY Bought service companies. Add these together and connect the dots. It is not the 1.9 million in revenue these assets will add. It is the resources that are locked underground that these assets will unlock and that is the POINT.

Personally I like what they are doing and this purchase has convinced me to increase my holdings. These people have cash flow to support drilling activities and they have people with drilling backgrounds.

PS
The drilling company is able to drill directionally. That increases their capabilities. NO waiting on drill rig availability.