Petrofrontier sinks on good news
What the news release should have been:
Petrofrontier is pleased to report oil in two successful wells etc... Statoil is encouraged by the findings and will frac and test the successful wells. Statoil may frac and test two additional successful wells based on the results of the first two fracs. Statoil remains committed to its multi-million dollar work committment in Petrofrontier's Goergina basin.
What the news release from management means:
"We have no idea how to write anything positive about our company or the progress we are making with Statoil. We don't know why anyone owns our shares and so in confusion we'll continue to write these odd news releases. We hope you understand how lost we are. We can tell you that Statoil has invested millions in our basin - which might mean something positive - but we don't want to say that because that might mean something.....well....positive.
So please stay tuned and let's see what Statoil and tens of millions of dollars spent results in. If the oil flows and we have a multi-billion barrel reserve we might announce something like:
" Have a nice day."