The company has a very small share float (35 mm basic, slide 6). As such, it is very leveraged to the relatively high debt level ($167 mm, slide 6). Debt divided by estimated 2012 cash flow is 2.7X (slide 6).

 

The company is 13% oil, 37% NGL and 50% NG (slide 7). 

 

Please peruse the latest presentation (17 Feb. 2012):

 

The company website:

 

Because leverage works both ways: any good news and up she goes; conversely, well, we don't talk about that.

 

Try Dualex (DXE) as a spec play instead. It is having a nice run and drilling has yet to start on a very high COS well in Tunisia. That play has a lookalike (Sidi el Kilani), four way seismic closure, and a definite seismic flat spot, which screams "hydrocarbon - water interface". It has no debt so no worries there!

 

jwall