With this announcement during the Annual meeting - and the announcement that they are drilling and have completed 29 horizontal wells in their Banks Field, the Earthstone stock has been bouncing and has finally started a new run. Last year when they completed 10 wells in their Banks Field in the Bakken formation, we saw a surge in earnings (due to the fact that the inital production on horizontal wells is very large). With nearly 3x's the wells being drilled this summer in the same area, the next two quarters should prove very impressive. If Bakken crude stays around $90 or above, their numbers could prove very nice indeed. Last year we rode ESTE to around $26 on some of our shares (from about $12/share). This time we were as low as $13's before bouncing now to the high $16's. Hopefully this is just the start.
Disclosure: Long ESTE