Wednesday, August 01, 2007 10:11:32 AM
I believe that it is a valid point and I thin that there are strategic reasons for this. The total acreage may not be all together, but rather a summation of all the small drill sites that they intend to use in order to properly explore.
Also, I do not believe that all 900 acres of those claims will have the "good stuff" on them and that probably only 10% are going to be worth looking at. If all 900 acres were good and they had to permit them, that would cost millions of dollars and would not be the worth the cost. I have had a look at some other companies and how they permit and I have always come back with the listing of "disturbed" acreage as being very low as to minimize the reclamation costs at the end of the campaign.
Unfortunately I am the eternal optimist and I have to think that there is a strategic reason for this and that maybe they got some advice from their JV partner when permitting.
-faz
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