/biz/ - Business & Finance

>>200877
>>200888

Wildcatting exploration companies make me nervous. Unless they have some producing wells, you are going off of forward looking statements and basically their word on what they expect to produce.

I got burned by a small investment in a wildcatting exploration company back in 08/09 when I first started playing around with stocks. Luckily it only amounted to a couple hundred lost. The company, now defunct Storm Cat Energy, had overexposed themselves by financing a number of leases that weren't producing yet. This was back when oil was like 130/140ish if I remember correctly. Then the oil price crashed as a result of the recession. Storm Cat couldn't access credit any longer, so their leases went belly up, they filed for bankruptcy, and as a common stock holder, I got nothing.

That being said, HUSA looks like it isn't as spread out in its leases. Furthermore, according to their latest forward looking statement in January, they have a well in Louisiana that they said should produce a couple hundred barrels a day, and that they are waiting on the processing facility to be built before they commence pumping.

I'm considering investing in them this week but I want to give it a day or two to see if this is just a pump and dump or not.