woje & Bobw, I agree with the thought that the report is very conservative. I have found that the first analyst that initiates coverage on a stock is almost always excessively conservative, I guess its just human nature. Hopefully the next round of analysts that initiate coverage will show a little more guts.
Given that it appears that SARA will have succeeded in increasing its production by about 1,000 boepd this quarter sequentially vs. 3Q, and that they expect to maintain around the same cap ex spend rate in the coming 4 quarters as they have in recent ones, I don't see why we shouldn't be able to expect similar production increases for next year. That is, 1Q average of 5,000 boepd, 2Q 6,000 boepd, etc. for full yr. '12 average production of 6,500 boepd.
