There is some great news out tonight about Gasfrac Energy Systems; it signed a long term contract with BlackBrush Oil and Gas, L.P. for "the provision of GASFRAC's proprietary waterless LPG stimulation process in the Carrizo Springs area of the Eagle Ford formation. BlackBrush has over 900 drillable locations for Eagle Ford and other oil zones in this area." The rumors of impending contract announcements have come true. Most surprising is that the contract is in the Eagle Ford and not in Colorado as the rumors suggested.
With this contract, GasFrac has moved from experimental through "just starting up" past "untested" and well on into "accepted". If another contract (for Colorado) appears in the next few weeks, the trip into acceptance will be almost complete. Add in the MOU for work in Europe signed the other day with eCorp and the growth plan for GasFrac is quite obvious.
Earlier today, UBS downgraded GasFrac to sell. While I wrote this afternoon that I did not agree with the downgrade, I now have to say that the UBS analyst must get this years award for worst call on a stock. At least, he should get the award for worst timing of a bad call. Think of it this way: hundreds of thousands of shares traded after the UBS call. Those UBS clients who sold out just hours before one of the biggest successes ever by GasFrac may soon be former UBS clients.
1 comment:
Chad Fries the So Called Analyst at UBS ay be a short timer there.
Stupidity is not tolerated, especially when the UBS BRAND is taking a HIT by this downgrade.
Trust is something earned, once lost, it is difficult at best to get back!!!
Personally, UBS sucks, they can take a HIKE
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