I bought some yesterday and did some DD here:
1. PPS has recently dropped from $3.70 to $2.10 because the revelation SEC has been in investigation. It started from March, 2011, without the knowledge of the company, by the requests of the third parties. So far there has been not a single charge.
2. Previously, PPS had been dropping because the previous well had been unable to complete because of formation damage, sending PPS down from $13.00 to $3.70.
3. Now the rig must have been moved to the next prospect and started drilling around April 19. It is shallower and will be able to drill in 60 days. That means we have about one month left to drill.
4. The CPO4 bloc has a potential 5 to 20+ million barrels of oil. Go figure what that means for a company with MC of $54 mil., $1.16 mil rev., NO debt, $10 mil. cash (recently finished funding)--Ownership insiders 47%, institution 40%.
"...the drilling rig on location will be moved to the next prospect on CPO 4. All necessary preparations have been completed for the drilling rig to move to the next prospect and begin drilling. These preparations include completion of the surface location and all logistics related to the drilling of the well, including all permitting. It should also be noted, that the next prospect located on CPO 4 will be shallower than the Tamandua #1 well, and is anticipated to be drilled in less than 60 days once the drilling rig is on location.
5. The PPS has been depressed heavily by the previous failed rig and SEC investigation.
Laywers are all over -that's BS as you know.
It has its risk but all the risks, I believe, arereflected in the PPS by now and in one month I see PPS move up something like aroud $3.00 to $4.00 and in three month PPS could reach as far as $6.00 when tresting is being finalized.
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9.18
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