Thanks Badge. Word taken. We can all WAG all we want. Ultimately, the proof, the reality, the future will all be known in a month. Whether we guessed wrong or right, will all be known shortly. That said, I offer this instead:
Some thought material for the weekend:
Facts:
MESA:
Gas/Zone
1. Producing Gas wells at the southern end.
2. Drilled in 1946 and capped due to the expense of production at .10 per gal.
3. 1946 well could not be pressure tested as the pressure blew out their meters and equipment.
4. Reef formation 25 miles North to South, 3 to 4 miles East to West.
5. PIP identified gas at the Southern end where producing wells are located.
6. PIP readings “off the chart” as Tom puts it in the area we will drill.
Drilling:
1. Tom said we would drill the Mesa. He staked a lot and risked a lot for this to happen.
2. It took a LOT longer to drill than Tom expected.
3. We are drilling! Which is the point. We are drilling.
4. We should know the results by the end of the month.
PPS:
1. .14 to .15. A ridiculous amount for the positive upside potential of 1 to 4 trillion cubic feet possible.
Bonus Features / Not facts:
1. We are currently drilling the Hardeman drill. Success at this one 5% drill should put us at a value at least .30pps.
2. Each subsequent drill at this lease should bring us up .50 or more per well.
3. There are two more sites west of the Mesa that show similar gas potential. Each easily worth $2pps to $4pps per site.
4. Hitting the MESA easily values us at a multi dollar level. For example: It has been stated many times that when we prove the field with 2 more drills, the field, if it only contains 1T cubic feet should sell for $400M to $600M. At less than 200M O/S shares for EDEX, this values us immediately at ??? You run your own numbers and results. My ultra conservative numbers add up to a minimum of $2.00 a share with no multiples of value built in.
5. (ALL IF’S) If the Mesa hits and Tom does sell at $400M – a low figure, extremely low, than he can give a dollar dividend and still have millions for drilling! I would be a fool to sell. Why sell at a dollar, or even a buck and a half if I have a dollar dividend coming AND still get to (as Tom put it) “keep all my stock?” I’d be a fool! Here is reality: I ain’t no fool, especially because, if a dividend comes the value/pps of my shares will rise 6x to 9x conservatively.
Call these pure pump if you wish, I will just call it one possible DD scenario which should be considered by all EDEX shareholders. On to Mesa results, because pump aside, this is where reality will hit and our futures be told. We will know in a month.
All of the opinions expressed here, inclusive of all my past, present or future post, are mine, and mine alone. The opinions expressed are not a buy or a sell recommendation. Do your own Due Diligence.
