The gas is known to be there. The question is, is it economic. Have done many wells, and so far has not turned out positive. Still feels there is tremendous risk. If they ever succeed there is billions of $’s upside.
Used to own this but sold out at about $6 and then they ran out of money. Stock is very expensive and there is a lot of uncertainty and a long timeline.
This one is almost like being in a casino. The asset could be very big. The gas is there but can they take the gas out at a profit. Have spent a lot of money to make it work, so far unsuccessfully.
In partnership with Exxon (XOM-N), which has saved them. Exxon is going to be drilling one of the large fields and assessing what exactly is there. If they find something, the stock will trade back up.
Exxon Mobil just finished drilling a well (in Hungary) and did some drill stem tests and came up with fresh water. Most water in an oil well is salty and briny.
Gas play in Hungary. There is gas there but can you get it out and can you do it economically? It is very deep. Exxon is a good partner but a slow one.
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