ARD CEO Tim Rochford Excited about 2006

Notes from the Tim Rochford interview:
- In 2005 we will drill 45 wells
- In 2006 we will drill 120 - 130 wells. (Nearly 3X as many wells as in 2005.)
- 500 drilling locations at F-M.
- 200 of the 500 locations are in the proved category.
- 300+ drilling locations on F-M property will come to proved category in next "12-18-24 months"
- "Look to see this company continue to grow production and cashflow but I think most importantly net asset value per share."

Click here to listen to the Tim Rochford interview.

Math:
increased reserves 8 million BOE excluding acquisitions in 2005 based on 45 locations drilled.In 2006 nearly 3X as many locations drilled when compared to 2005. Therefore if ARD reserves grew 8 million boe based on 45 wells drilled then in 2006 ARD would expect to see 24 million in added proved reserves as a result of increasing drilled locations by nearly threefold. (8 X 3 = 24.)24 + 30.2 =54.2 million BOE proved reserves.54.2 - 1 million production = 53.2 million BOE proved reserves at year end.Assuming growth of share count to 14.1 million shares we area looking at total oil assets per share of 3.77 BOE per share.

With CL price of $62 per BOE we have oil assets per share of $230. (OAPS of 8.42X share price.)

Assuming $70 oil we have oil assets per share of $263 (OAPS of 9.63X share price.)

Assuming $80 oil we have oil assets per share of $301. (OAPS of 11.02X share price.)

OAPS = Oil Assets per Share.

2006 will be a year in which ARD shareholders will be richly rewarded. Tim Rochford emphasizes growth in Net Asset Value per Share as being most important. With ARD drilling program it wouldn't be out of realm of possibility for proved reserves to grow by over 76% in 2006 based on the drill bit alone. No Pump. Just facts.

ARD is a strong buy.

For those of you who use my ARD purchases as a contrarian indicator I want to make an announcement about Wednesday March 8, 2006. On this day (today) I will purchase more ARD shares. So if you think it is time to sell when I buy then please go ahead and dump your shares as fast and as furious as you can at the open. You are more than welcomed to just dump your holdings like there ain't no tomorrow.

I'm buying another big block.