A couple other things about the CC today:
These guys sounded like they believed 2014 was going to be a big year for the company, and that the company would be profitable within about 6 months from now.
As FS (Floyd Smith) said, he believed they could achieve that 100 BOPD within the next 3 months, and over 150 BOPD within 6 months.
FS also said that the company is starting to hire a full time staff, and used the CFO as an example, the CFO was a part time consultant until as of recently, and now he is a full time employee.
The convertible notes have really hit the PPS hard, and several folks in the company said that the company is trying to clean up its balance sheet and pay up these notes and ultimately become debt free , and that it should happen sometime in the near future (Im not sure when, they werent specific).
Someone in the company said that the TX properties suspension issues were resolved with the state, and that it was just a financial and time delay at this point before they can get it back up and running.
FS said that the company is focusing all its attention on the 2 OK leases because of their potential, and that those 2 leases could get the company somewhere in the 150-180 BOPD range once they are fully developed over the next several months- SNYDER/SIMON and EDWARDS. They have many other leases they can also rework, 18 total.
FS also said that the company is looking at more potential leases and opportunities daily.
FS said that the BAKKEN deal is going to be a really good deal for the company, and that PEII will not have any further expenses or fees related to that until after the wells come online (whatever other expenses happen will come out of their monthy 5% revenue cut) and that BAKKEN has a chance to be 500-1000 ++ BOPD, PEII gets a 5% cut ( I believe thats what he said - CC was very hard to hear at some points in the call)....
Several folks talked about the Secondary recovery process, and the equipment that the company owns, and that they have the ability to recover CO2 themselves (from nat gas) that they can reuse and re-pressurize wells with it themselves.
They also said that there are many other leases available for this type of secondary recovery process.
They also talked about that they believed that their pipeline system was going to benefit the company greatly in the future.
The S-1 was just filed and as Ive already posted FS said that it could take several months before that goes into effect, but it should allow the company to obtain capital on an as needed daily basis without having to use convertible notes anymore..
FS also said that the company does not want or expect to R/S anytime soon or in the near future, and that they'll have to see how the dust settles over the next few months while paying off the convertibles and trying to get the BOPD going...well see how it works out.
Ill state this as IMHO, I didnt take notes, this is just as I recall it....GLTA...
If you only knew the magnificence of the 3, 6 and 9, then you would have the key to the universe....N Tesla
