A bit overdone, we would say…
See the PR here.
- This test was not about the gas, some might have seen the 11MMcf/d flow as a disappointment, but it’s not. The choke they used is minute compared to the one they used in the big flow test (a 3/4″ choke versus a 4 3/8″ choke in the big flow test)
- Apart from that, the most of the gas zone has been isolated, so that 11MMcf/d really isn’t remotely meaningful
- The DST is about the liquids, or more specifically, the liquids/gas ratio. This came in 15% higher than at the top (where it was already surprisingly high). Not a stellar number (more like mildly good), but it’s not the last word on it:
- This is only the first ‘liquids’ DST. They’re going to (after coring) do another one lower, likely in more heavily liquids zone, so there is room for improvement
- Oil has not been tested yet, that’s lower still. We got to have some patience.
Today’s news is mildly positive, with still all to play for. Use the sell-off to accumulate a little more.
I was hoping to hear the signning of a partner on the stripping plant today. But I think the selloff was due to the traders not getting a mention of oil. Stop loss has taken out a number of shares. Share float makes this a volatile stock. Swings like this used to make me question what the hell I was doing, but I know I am right to be extra long on this stock.
I’m sure IOC mentioned in a press release somewhere that they had no intention of testing for oil with this DST. This test was to help verify the condensate ratios at the bottom of the NG column.
It seems many do not understand what is going on and are selling because everyone else is.
IOC stock is on sale……get it while its hot…..Im a lONG. this stock has huge potential. we are just now developing a floor price. With the stops loss, it no wonder the stock is doing what its doing…. you will be sorry… oh will you be sorry.