Hyperion Exploration: Confident to Meet or Exceed 2011 Guidance

Hyperion exploration (TSXV:HYX) released its Q2 results early today reporting an increase of 50% in production compared to Q1 with an average of 943 boe/d. HYX also confirmed they are on track to exit at 1500 boe/d (67% liquids) or more which is another 50% increase in production compared to Q2.

“In anticipation of an extended spring break up season, Hyperion prepared 9 drilling locations to be drill ready (licensed) at the start of July 2011.  This offered increased flexibility to execute our 2011 drilling program.  These 9 locations are located in three different geographical Cardium prospective areas, specifically Garrington, Buck Lake and Pembina.  This strategy paid off as Garrington was the only area in early July that was dry enough to start drilling and as a result our drilling program remains on track with our 2011 budget.”

hyperion cardium map

This is how you do it; this is what walking the extra mile means when it comes to working on your objectives. No harm in repeating that management is top notch in Hyperion and I have no doubt that in the long run they will successfully create shareholder value. The recent insider transactions vouch for their confidence and involvement in their own company.

Unfortunately, in this market there’s no point in discussing valuations and targets. The stock is not very liquid which sets it up for some wild swings. Even though the share price rose 15% today, it remains way under its fair value in my opinion. But then again, there’s no such thing in this market, it is worth what an investor is willing to pay for it until we get through, what I hope turns out to be, a temporary soft patch in the economy.

What do you think of HYX?