Verde Science Inc. (VRCI)

[Tom Orrow]

Some of the questions in the last cc made me think that smart money was getting a bit impatient. They were stuck in the hole on that one, too, due to the pressure differential between the shale and the sand. They were just quieter about it. One guy asked a pretty pointed question about budget. And Ramirez answered that he was within the bounds of the budget. Which seemed to mean over current forecast but under the ceiling. So I think he blew management reserve on that plug and drilling around it.

I haven't listened to the conference call yet but my guess is that today's haircut is because they've blown through the top of the budget now on the hole and still have to pay for resolution of the stuck pipe.

Maybe that was addressed in the call. I'll wait until it posts before continuing comment.

I read an article by an engineer at Shell who said the chances of a stuck pipe in a well are 12%. Wonder what are the chances of two?

http://www.slb.com/~/media/Files/resources/oilfield_review/ors91/oct91/5_perspective.pdf

As you can read, it's not a disaster, but its not inexpensive. If smart money was trimming position, that might be why.