Conversation with CFO:
I spoke with Mickey Cunningham last friday and got an update on the company
1. the second rig that they are buying has gone through it's inspection and after it has received minor 'tweaks' the company will accept title to the rig, it is being paid for from cash on hand. The rig shortage (called rig choke) in the industry prompted this second rig purchase and they believe they will keep it operating full time, if for any reason they do not have a well ready to drill they will farm the rig out and make some money from the farm out.
2. the sec filing, three independent auditors have been at the TDYH office, Mickey will not give out a timetable of the filing but has said they are working on it full time and they are getting closer.
3. they are part of an organization that is offering free transportation, housing, furnishings, and training to New Orleans victims that want to move to the area.
4. their production is still over 1,000 barrels of oil equivalant per day.
summary: this is a long term hold for me, current p/e 2.5 (approximate) and the 2 million float tells me this is truly still an undiscovered. Downside risk minimal no matter what future market conditions may bring (personal opinion.)
There is no substitute for conducting your own research
