Michael Smedley
Bayou Bend Petroleum Ltd.
BBP-X
COMMENT
Oct 31, 2007
One well was dry but the current well is showing several levels of gas. They are still waiting for a big well, which could add $3 to the stock. Speculative.
Had 3 dry holes in the Gulf, which is normally very rich territory. Still has another 20 or 30 holes to go. Have major financial backers. They had a big program ahead and it is unusual in this territory if you don't have a success rate of 2 or 3 out of 5 wells.
Would just stay with this stock. Have a very long program ahead. Have big backers and are still funded to do several more wells. The area they are in is prolific. Theoretically there was supposed to be 3 hits out of 5 but hasn't got a hit yet. Wouldn't add to this one.
The odds in the beginning seemed to favour that they would have 3 good wells out of 5. Instead they have 3 dry wells out of 3. Have huge backers. They are surrounded by trillions of cubic feet of gas.
There are very important backers behind this company. The region is fertile in gas. There have been 3 or 4 dry holes. Highly speculative. If they hit the big winner, then obviously it can go right back to the top.
May be a good entry point. Had some early problems in the drilling and came up dry a couple of times. Seem to be doing a little better now. Interesting land position. Be prepared to wait 2 or 3 years. Don't let the farm on it. Speculative.
Sold his holdings. Had some recent drilling success. First 3 holes they drilled were all dry so market was convinced to run. Also hit with the general pounding that small caps got. Extremely speculative but if you’ve got the stomach for it and think they could make it, it might be worth a look.