Just a couple of points to keep in mind..
- Early results from the second well in Kyrgystan could be in next week, even as early as Monday. These are drilled by Santos (resulting from a $58M farm-out deal). The first well wasn’t too promising though, perhaps that explains the relatively mild reaction to the rather bullish Cohen report out this week.
- Relatively short term there also could be a farm-out agreement for the Albanian properties, the most interesting of the five (an independent report by Gustavson indicates there could be several billions of barrels of oil). There is already some preliminary agreement.
- We reiterate why we like Manas. They have five properties in five different countries, with a couple of serious farm-out deals already in place, showing serious interest and a nice risk spread. However, we keep stressing that it’s a high risk, high reward stock. None of these properties are producing yet, and there is no guarantee any of them will. Keep that in mind when you take investment decisions.
- We think that a small position is warranted because the risk/reward situation (which is why we recommended one at 24 cents in March this year), but it’s not a stock for betting the bank.