Hero Technologies Inc (HENC)

[tchauncy]

Re the large buyers today, Not the least bit surprising that there are a few smart buyers around to pick up size when available. Remember, a move from a nickle to a dime, is like going from $5 to $10. And one thing for sure, as oil starts moving up, even if only to the upper $30's this will wake up too.

The PR was not only well done, but even surprised me a bit with this very strong comment:

"HENC ultimately incurred 74.1667% of the cost to drill the Baikal-1 well. HENC had the backing of a large subsidiary of Holloman Corporation, its major shareholder, to meet its drilling obligations and future exploration efforts"

As I have been saying, HENC is NOT going to desert its shareholders.

The main reason we may to wait for some recovery right now is that there are No Rigs or Crews doing anything in the Cooper right now. To bring in both at this time, even though for HENC with a .68 AU Dollar, a very attractive price, would be very expensive.

The Cooper has one of the lowest finding costs in the World, probably in the upper teens per barrel, but we probably need, as I said above, relative assurance the price will be staying in the mid-upper $30's before crews are brought back.

As I have said several times, I have been close to the oil business for some 43 years. I have seen these drops before where all the "talking head" were predicting years of softness, just like now. While I don't think it is going back to 70-80 this year like Boone Pickens seem to (an old Houston acquaintance from his Mesa Petroleum days 40 years ago), a move to the $50's would not be the least bit surprising.

What you don't hear too much about is the reason WHY so much oil is still being produced at these low prices. The reason is that many oil companies sold production in the Futures markets for a year or so out. So some Companies are still getting $70+ per barrel from their producing wells. Once those contracts expire, you will begin to see a lot of wells "shut-in". This likely to be very noticeable mid to late Summer just about the time gas, diesel jet fuel etc. will be in higher demand due to low prices.

JMHO