This was written a long tine ago but I will paste this text here again only to remind investors about Oil business:

if this is the real deal..good producing fields , reasonable mgmt controls , no excessive compensation or side-deals that strip out revenue and profit , its a steal...but some caveats for those who just wandered across any stock in this sector.... ...That this is "undervalued" in the eyes of many should not be a surprise. There are a lot of these types of exploration and energy stocks in play . They are not at all easy to sort through and they are generally not transparent . Nature of the business is that wells can come on strong when drilled and play out quickly and the investor in the company stock will be one of the last to know . Hype gets built around reserves, but less promoted are the "recoverable" reserves, and you will rarely hear any management team ever talk about the new well they promoted last month suddenly "played out"...only aggressive ongoing DD will even get you in line first with that knowledge and if its not public info, technically you can't trade on it.... Also, many are not performers (for the shareholders) in the end. Some mgm't teams take advantage of the hype and strip out the shareholder value with pay and options and dilute the shareholders using stock to expand the enterprise . Its a land of sharks littered with the carcasses of many investors. That said...from my view of the info publicly available, if the field production stays strong and stock rises to a full (or excess) valuation, this can make shareholders (me) a whole bunch of money ...JIMHO