I'm finally back home! Arghhh!!! That was a long drive and a lot of work (doing a real estate deal in South Florida)! Just wanted to check in with my PEII brethren. I can't go into details about my conversation with "my guy" for obvious reasons, but I will say this: If you're in, my advice is to hold. If you're not in, my advice is to buy in. If you're in and have the extra money, my advice is to buy as much more as you can, like I am, because I believe the news is REALLY REALLY REALLY good! I'm walking a thin line, here, but I'm not technically breaking any rules or laws. "My guy" is not technically an insider, but he does know Floyd Smith very well, and used to be his partner in other ventures, a long time ago. They're still on good terms and speak frequently, and since I also know him, I trust his assessment of Floyd's demeanor at the moment. A direct quote from "my guy" from our conversation on Friday: "Floyd is walking on air right now, and I'm pretty sure I know why." To my knowledge, he doesn't have any insider information anymore than I do, but we both had a nice long conversation about the possibilities, and we both came to the conclusion that the cold weather in N. Dakota, coupled with the bad press of the extra volatility of the light sweet crude that Bakken produces (which is silly, because that's the best kind DUE to the fact that its flashpoint is lower) is resulting in a higher demand for traditional oil producers, including the reworked wells that PEII operates. He also thinks that the production numbers for the Edwards leases in OK are going to be blowout numbers. I didn't ask him to go into details about why he thought that (if you want to keep your friends/contacts, I suggest you don't push them on things that could result in bad things happening to them), but my guess is that it's because Floyd seems to be "walking on air" lately, as he put it. You guys do your own DD, and DO NOT take my word for it. I'm just sharing the information I have, and the recent price action would seem to indicate that it's probably good info. Either way, I guess we'll find out soon enough. GLTA and happy trading!
BTW, if you want to try to connect the dots as to who "my guy" is, the company he used to be partners with Floyd Smith in shares his name. I think I can get away with saying that without breaking any laws or incurring his wrath. ;)
Disclosure: I am long PEII.