Replies to post #1344 on Daybreak Oil and Gas Inc (DBRM)

[downsideup]

I think that is likely about right...

I don't think they are "there" just yet... but I think they will be there a bit sooner than others expect... or want to admit. I expect that is why you see that shift in focus in the filings.

That takes us back pretty much full circle to the dispute between myself and Maverick One here over the last week... on when we expect that self funded development using production revenue, the current development focus... will be likely to deliver enough growth in production volume and proven reserves to make switching to that new funding route feasible. It is a more or less parallel issue with what you think the share price will be, and when... as they prove that they have a bit more interesting potential than the share price reflects now.

When might we expect to see $0.25 a share... or $1 a share ?

At what point are they likely to be "bankable" ?

I've pointed out that the current financials showing them handily surviving last two quarters, through the end of November... solving problems by spending cash, and then reversing the decline in the cash position this quarter... are based on production that averages only around 20 BOPD. That is a stunning number, to me at least.

Brilliantly done...

I think drilling the S4 as a horizontal... and bringing it in with 375 feet of pay... will likely prove to be a game changer for DBRM. It probably changes when they'll be bankable... and when they'll merit $0.25 a share.

What WILL it produce when they do get it on line ?

I expect it is also going to prove interesting... in the next quarterly... to have these other two new wells coming on line along with the S4H... right about the same time that some of the other production limits being eliminated now begin to show up in the impact in the filings.

Every 100 BOPD net to DBRM means about $0.04 a share ?

Are we there, yet ?

The filing said they expect to drill 12 more this year ? That is a pretty big bump in the drilling rate... finally... getting us over the hump. I guess that should give you a bit of an indication what they think is likely to be doable within the current self financing scheme ?

One of the first of those might be another horizontal drilled at the Bear ?

Should begin to be a pretty fun ride, from here...