Value Microcaps Junior Energy

[farwest]

C <<If you have a good year, boom, next year SRB goes through the roof. >>

In some cases, perhaps. But not likely for CEN while they are still in heavy capex phase of development/exploration (ie next few years).


SRB is based on several criteria - mostly capex spend coupled with amount of drilling - the more drilling done/capex you spend in relation to your revenues, the less SRB kicks in.

As for POE, they got hit with SRB when they enjoyed some high rate wells and were seeing oil spike to ~$147 - a double whammy as they couldn't raise capex fast enough to shield themselves from SRB.