Bonanza Oil & Gas, Inc.(fka BGOI)

[texas tom]

Most of the big producing fields in the JoMill Spraberry formation are drilled to depths of about 6000'. The 2 BGOI wells were drilled horizontally to a depth of 10,000'. I'm sure, BGOI is encountering problems with casinghead gas pressure. In the old days, the gas used to be flared. There are probably some productive zones higher up in the casing that are being tested. The JoMill Spraberry formation only produces about 15% of what oil is in the ground. Horizontal drilling substantially increases the amount of recoverable oil.

For me, it is too early to buy in to BGOI.