Definitely a bit of a mixed bag in operations...
Nothing much new or different in the financials, other than that the new filing in the 10Q resolves the recent issue with restatement in the 10KSB/A and puts the reporting fully back in order. The numbers show some of the early impact of new effort in reducing SGA, and, otherwise, show some minor wiggles in the numbers that all seem to properly reflect the rest of what we know in operations, etc.
The notes contain a lot more information than has been available before now from IR on the results from ongoing exploration efforts with current operations.
We already knew that the first hole found oil, but we still don't know how much oil or what sort of production will result, and are still waiting patiently on that to be reported out... although they SHOULD already know pretty much by now what sort of initial potential exists, the API, etc., all of which we don't know yet. I've heard tanks are in place and collection continues... so... "soon".
The second hole was apparently a dry hole... Hopefully they got good geological data from it that will help in better targeting future holes. The only advantage that comes from it otherwise is that this is still really really cheap drilling, and they have lots more targets, and are planning on drilling another 8 to 12 this year, hopefully.
The third hole had engineering difficulties, not a major shock, perhaps, when applying directional drilling in fault structures... So, they quit working on it before Christmas, shut it in, and took the holidays off. Supposed to be starting the work to re-attack it now, to get a whip going around the obstruction, continuing the work to get the hole to its original target. Frustrating, no doubt, for everyone... but also pretty much a par for the course type issue... given the focus of the effort on the third hole, particularly. No indication I noted in the 10Q about where in the effort they were when they encountered problems:
"A third well began drilling in December 2008 and encountered mechanical difficulties as a result of unexpected geological abnormalities. After numerous attempts to correct the problems the well was temporarily abandoned. The well will be re-entered in early 2009 and sidetracked to the prospective bottom hole location."
Hole number four hasn't started yet, still waiting on a couple of permits while working through the process of addressing all the various issues...
They continue to be pretty tight lipped about every aspect of the operations effort... while expressing some frustration with the JV imposed limits.
