Evening all26 Apr 2018 21:50
Been so busy with work this week struggling to keep up with posts. But from my brief reading it seems like we�ve attracted a range of posters - that�s normally a good sign. For me a lot of it comes down to trust. The team have said they want to do their �rinse and repeat� strategy in East Denver. Cully has said that in the presentation, to me, and now in the podcast. If you don�t believe that, then you shouldn�t be invested. For me trust in the board is pivotal. They have mine and we will soon see if that is misplaced.
The 7.5% deal is a good deal, from most posters that seems to be generally agreed. With a East Denver rinse and repeat strategy, further exploration in Montana (In terms of drilling very cheap I�m told) and possibility of reasonable income with little capital expenditure for DTU commercial deals (see prospectus) I�m very happy to hold.
This is on top of the circa $10m cash balance and roughly $500k per month for the next two years (yes assumptions apply). Oil is in the biggest bull market for years, we�ve established strong relationships with big players which will help us in future deals, and trump is in the whitehouse. I could go on..
You can always spin something in a negative light but take a look at the fundamentals. Yes maybe in absolute terms east Denver has been expensive - but it�s about the relationships and proof of delivery which highlands have shown as well as profit margin.
My only criticism is I they haven�t RNSd their plan forward, tell the market what the roadmap is for the next 6 - 9 months.
ps. If you�re reading this and you work for the PR firm HNR employs, please show them this. ATB.
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