To answer your question, James
I think this company has quite a bit going for it. I would sell around here tomorrow or the following morning and buy back in at around .13 pps to sit it out long for the rest of the year... selling some on the tall candles and buying back in lower unless there are obviously lower lows.
Why? There is too little research and DD posted here or the company website (but production numbers might be available on the TRRC website now that we have the name of the probable operator of Powder's wells in Texas) to justify more aggressive holding.
50% of O&G cost, or more, is "finding" the lease/oil. This company has highly a paid CEO per the 11/07 SEC filing and positive cash flow on the other hand. The share structure is favorable, but the cost of Texoma Drilling Corporation was high? Six drilling crews of 4 or 3 people for the work and service rigs could be substantial overhead. The drilling rigs are a plus for scheduling , but how many wells need the servicing rigs that are now owned by Powder? Need to know. I can't even find a Texas "operator" listed by the TRRC by the name of "Texoma Drilling Corporation." There is a Texoma Drilling & Production Company. There needs to be more DD and discussion of these specifics before this company becomes a solid "buy & hold". Oh Canada! Another issue for me after a few bad experiences. lol
Waves of Crude Oil & Natural Gas:
