DD Support Board and Research Team

[DragonBear]

But if there is an old well on a property there is a possibility for it to produce again if it is drilled deeper. Old wells weren't always drilled as deep as they are today.

That's not what the Permian is about these days. They do not drill deeper, as in conventional wells. Instead they typical drill a bore down to 11,500 ft. Then decide what zone in the first 3K feet they wish to go horizonal, and frac in. For the Permian there are multiple zones in the Bone Spring, and Wolfcamp. It's no longer about depth, but rather length. Staying within the zone while going lateral. Where to place the frac plugs or spacing. How much sand to use, and mesh size mix.

They're only interested in building a refinery close to the railroad

No, they are only interested in scamming retail investors. It takes billion$ to build a refinery. Not $450M. And established refiners are not looking to merge with a Microcrap scam in order to build a refinery in the Permian. The only "building" in the Permian is pipe infrastructure so as to transport oil&NG to a major pipeline, which in turn runs to a GOM coast refinery. Also some pipe infrastructure deals with water disposal.

The oil and diesel has declined in Guatemala and Peru which makes sense to export it there.

No, diesel is being exported to S. America, and Europe. Not just two small S. American countries. The US refiners have taken on the role of being the major refiner of diesel fuel for the Western world.

However, they may have found their place now.

Yes, they have found a good scam angle to run with. I see they are trying to get up to date on their filings, and are a couple short still. Preparation for an insider dump. Per their filing ending 30-Oct-16, the O/S had 383M issued. And they propose to finance a refinery which can't be build for $450M with 7B shares. If this Microcrap scam can't get above 0.10 with fragments of the O/S being dumped into the float, what do you think is going to happen when insiders start to dump the first few billion shares to be issued?

There are a lot of acquisitions and deals taking place right now in this area because everyone wants a piece of the next boom.

Butt it's not happening in the Microcrap market. Why? Because a Microcrap oil stock with $209 in cash, an accumulative deficit of $30M, assets of no worth, run by CEOs scamming away for years, have a difficult time attracting private equity, and/or a commercial bank funding. Enough capital to land/lease acquisitions for up to $1B, with a revolving credit loan of $200M+ to finance drilling.

If you want to play the Permian story, then you need to look for small caps, with acreage assets, and with strong private equity backing. Able to use that backing to get a revolving credit loan on favorable terms. Able to use the funding to drill Shale oil wells with good results, and to be able to use the capital for bolt-on acreage. Where the goal is to develop, prove assets, and in a couple of years get acquired by a large cap producer. A lot of bumps in the road (aka trading opportunities) along the way.

Your choice is to play Microcrap scams, or real small caps in the NYSE exchange. One involves playing a Microcrap pump, and guessing when the dump is coming. Getting out before the PPS goes into the toilet. The other involves understanding market/sector macros, along with the fundamentals of the stocks.