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Any day now? We will know if Armada can live or die as a business entity or at least "SURVIVE A LITTLE LONGER."
Usually, results would be out by now. Something tells me they are being late for a reason. That reason has to be connected to HOPE. As with all HOPE, there is risk. I hope that the risk is not too great at the moment (chaos in markets) that the leader of Armada (Randy) can't make once again turn nothing into something.
Good luck all.
JoeB1gStocks,
I agree with biztech in regards to the CEO, who is a friendly straightshooter who is willing to discuss the company with shareholders and investors.
Hopefully, this investment will work out for Randy, biztech, myself and other long-term shareholders.
Hey Biz,
I haven't but yes I feel like the company failed to execute on a number of points it had been pushing and preaching for the last 3 years. I tried emailing them at one point and got a pretty rude email back that left a pretty sour taste. I had this stock back when it was Mesa and with the reverse merger they pumped it at one point stating the benefits of the merger and how the new asset properties where going to be a game changer. They ended up drilling a test hole that never produced and ended up selling the properties for a fraction of what it cost shareholders to 'hold and see results' I lost a about 25k investing in this stock and I'm just hoping that doesn't happen to other investor's thinking this one will turn around.
Joe, have u talked to CEO? What do u mean he doesnt follow up? He has communicated to shareholders. I think u mean the company has not executed successfully on plans. This is the case ans it wasnbad timing not due to his failure...ive been there ecery step of the way following this plan and witnessing the why. Armada succeeded at drilling the wyoming test well and sold off property before the crash. They monetized assets in lousiana when they did that raised 10s of millions to fund the acquisition drilling program and other costs. I was always co sidering a crash in oil or economy and it came so quickly that the pendinf acquisition fell through but maybe that was good since at current price of oil it wasnt worth it. Now they need a partner and its goign to cost all big legacy shareholders like it costed u in past and me today. Shorting at this point is not smart its at .018 its already at bottomr priced for fsilure. Im holding. Ceo is a good guy call him talk to him hes not a salesman hes a straight shooter.
Not to happy about stock price but considering the industry I understand the situation.
Armada is still poised for success if it can take advantage of low operating costs in this environment but how to ge there is the real issue.
The stock price is priced at par value almost. Its priced as if the company failed. I suspect someone still buying and market maker still making a market selling. At what point will this be done? Who knows. At this price investors can declar worthless and write off but will they actually sell the stock?
I've purchased more shares here but it does nothing to support the price which from experience indicates value hunters or someone in the know trying to get the cheapest price out there.
If Randy can pull this off (he has before) and not sell the company for the current market cap (by issuing about the same amount of shares outstanding) we can see a sharp turnaround.
This is a highly speculative proposition and may not materialize so don't throw all your money in here thinking it will happen. I will say its worth the reward at near .01 to invest something here. Large caps are not going to see any value creation wihtout oil prices rising.
Small companies, individuals drilling wells will see upside long-term if they can last 2016 in the black...which is hard.
good luck.
I've just been watching but may get in soon. Good luck too.
Technical analysis wont work to predict the movement hear...unless you and a few other traders going to try and run this up to define the future...the only catalyst is the oil sector company news or steady buying from someone in the know...i have been buying only to see this tank on low bids...i suspect you and roy are the ones buying cheap...wonder how much market maker has left to sell before buying again...good luck
Looks that way to me too.
Hello Roy,
What caught your eye? The percentage gain last week? Are you a shareholder?
AOIL at a standstill until new financing or acquisition. Needs assets and income to turn on the lights. I was really worried about oil prices plummeting and/or stock market before end of year 2014. Oil prices happened, stocks didnt right before I could buy put options on oil to hedge against this position. Randy is a smart guy, he's turned poop into ice cream before so I think he can pull it off. Plus he has a big interest to do so.
My concerns are operating income to cover expenses (randy decided to forfeit salary).
2. Finding a partner to start drilling in Wyoming and generate revenue and pay off or settle the cost overruns drilling the last well (creditor filed lien).
3. New financing since the line of credit is now a term loan with deadlines.
4. Aquire new properties.
Looking forward to something happening in the near future. Now is the time to buy on the cheap maybe not the first thing that presents itself but after a few looks.
Good luck here, oh I forgot I think one of the directors is going to have his shares reset to a lower buy price as a result of the stock decline. James Cerna I think. This could or could not be the cause of added volume and price declines to .035.
I was glad to see that the Finance Company backing AOIL is working with them and extending their loan until 2016.Remember drilling new oil wells cost the same in drilling in Iran, Iraq or Saudi Arabia. The price of oil should recover to $ 70 or $ 80 per barrel by year end. IMO
germanium they are filing the 10-k not Q4. They are not late. You sold off all your shares? Good for you, always up for a trade to preserve cash. Hopefully you will buy more here.
ARMADA OIL IS LATE FILING THEIR 4th quarter and year end results of operations. I STILL have 18000 THOUSAND SHARES OF THEIR STOCK.
I'm offering sellers .072 x 50000....no rush to buy more, if you need to close out position its the best I can give you right now...take it or leave it.
I wouldnt look too much into increase on friday...someone doesnt know something is going to happen or because oil prices are rebounding...its simply because i bought 75000 shares in 25k lots at the ask and ask moved higher...i could have bought at .06 .062...but at these levels i dont care...i just bought when i wanted to buy...i know there are some deal chasers trading here for a few hundred bucks but not enough shares or volume to do this successfully so its not a market profitable enough to make...good luck there is value here...dont forget low oil prices create higher oil prices and luckily armada disposed of assets and reduced debt expense...i anticipate g&a will drop and i hope randy cuts salary during tough time...randy u can get it later...share our pain
Why dont they talk about the zones or lease production numbers in Woodson County? All I can see if they have a property there and thats it. They dont go into to much detail about the assets like you see other companies doing.
A bit of an overreaction to the news presents a buying opportunity especially in the midst of end of year tax selling. This is the time to buy. This is based on 6.5 million purchase of kansas property which could be sold at or for more that 6.5 million minus remaining long term debt of 3.4 million plus value of niobara lease. They got the hard work done spent 5 million for the test well i dont have actual data but it sounds positive to justify at least have the 13.8 million in value associated with that lease. There is value of at least 10 million here. Im holding and picking up when i can...late here today...lots at .08 and .09 earlier. I think the oil decline is not significant at the moment because they were not going to drill right now...the potential acquisition was pricey and its better to wait for when the dust settles...
The low price of oil will make it easier for Armada to buyout producing wells at a bargain. I sold out most of my shares in Armada 3 or 4 months ago I only have 18,000 shares left but I will buy back in when things become more clear.
Looking dire right now...fingers crossed...i remain hopeful..mgt seems to pull off the impossible...keep working it randy! Ask shareholders to put up money to raise cash...oil decline wont last long
biztech,
The company had until November 14th to close the deal.
http://www.sec.gov/Archives/edgar/data/1081074/000118518514002774/armadaoil8k102214.htm
A Form 8-K filing deadline for most items is four business days after the occurrence of an event triggering the disclosure requirements of the form.
http://www.sec.gov/rules/final/33-8400.htm
The closing of the Purchase & Sales Agreement could have been cancelled since the price of WTI crude was lower than $76.74 on the business day prior to the closing date. The spot price was $74.13 on November 13th.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=D
I'm not sure I'm following as to why today? last I remember is they had until the 24th to finalize the deal. But I'm committing to memory and that is my calendar date to remember. Being that its close to holidays I doubt we hear anything by then. The feeling I get is the deal is done, we are waiting for things to be put on paper and will hear about the actual terms and most importantly---with high hopes---about results in wyoming bear creek.
Then we move on to what the next date for drilling is, after winter/during winter and projected expenses/planning effort going forward.
Things looking brighter for AOIL. Take a deep breath everyone, oil prices flat now, waiting for OPEC news...no cut equals further downside...a cut means back above $80.
Question I have is Russia done playing hardball because if not, this will not stop!
I believe the company is required to file an 8-K today, providing an update on the purchase of the Texas leases.
With oil prices this low Armada may get a good deal on a drilling rig to drill in Wyoming this spring as drilling rigs stack up because oil companies will cut back on drilling. Also Saudi Arabia would like to see oil prices up also Armada has a way of making deals we could never imagine. When the first well comes in in Wyoming that's when we see the stock rocket up. IMO
Hello diy_investor,
I thought the same thing. How can you borrow that much. Well, its not new if you buy property with proven reserves and production. They will value assets and loan against that. I think they may be working something quitely in regards to Wyoming. I find it fascinating that nothing has been said. I'm optimistic its for good reason. Any day now we should hear if they get the loan or not.
Oil seems to be bottoming out...traders covering shorts...with all this fear I think oil will slowly recover to a world-required level.
good luck all...maybe, just maybe our time is near.
Reading the 10-Q again this morning in a more complete manner, I noticed the following item. It seems to me that to obtain $28 million funding, the company must have had significantly favorable results from the drilling in Wyoming. A company having market capitalization of $9 million getting $28 million in financing seems remarkable to me, assuming it does happen.
Including working capital, the acquisition of the Tabbs Bay property, and capital to accomplish various drilling and recompletion projects at Tabbs Bay and in the Company’s other project areas the Company has cash needs of approximately $25,000,000. To address these needs, management has entered into a Term Sheet with a capital provider wherein the Company would obtain net fund availability of approximately $28,000,000. The intent of these actions is to acquire and finance an oil and gas property with a source of recurring revenue and to obtain sufficient capital to expand the Company’s cash flow and reserve base. Although this effort is progressing as expected, there can be no assurance that the Company will be able to close such financing on terms satisfactory to the Company.
Here is what I got from today's 10-Q filing.
Company is selling the Louisana assets.
Company borrowed money to fund PSA and obtain a loan. The following is in the 10-Q under Note 12.
Issuance of Note Payable to Related Party in Conjunction with Entry into PSA
On October 17, 2014, the Company issued a Promissory Note to Sycamore Resources, Inc., an entity controlled by Randy M. Griffin, the President and Chief Executive Officer of the Company, in the amount of $100,000. Principal and accrued interest of 12% per annum will be payable in a lump sum on or before maturity of this note, December 31, 2015. Proceeds from this borrowing were used to fund the non-refundable performance deposit under the PSA with TBELP referred to above.
Issuance of Note Payable in Conjunction with Entry into a Financing Term Sheet
On October 31, 2014, the Company issued a Promissory Note to David J. Moss in the amount of $100,000. Principal and accrued interest of 12% per annum will be payable in a lump sum on or before maturity of this note, December 31, 2015. Proceeds from this borrowing were primarily used to fund the non-refundable expense deposit required in conjunction with a preliminary Term Sheet entered into with a prospective lender.
The company appears to have an opportunity to terminate the agreement. The CME Group has the January 2015 WTI future closing at $76.69, as of 4:20 PM, Central Time.
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html[/tag]
I hear you! Only thing keeping me here is my faith that CEO and other insiders have too high of a vested interest to let this fail by poor choices. I think management is trying to grow this slowly and avoid hype...my only worry was oil prices as I expected a decline this year. It's really a no brainer on oil prices, U.S. production increases, Saudi's at odd's, Russia not being nice, somethign going to happen but for how long? Based on futures prices--its anticipated to be higher than today so I can't panic yet.
million dollar question is will Armada go through with the purchase?
Armada can opt out,"... such oil price on the business day prior to the closing date is less than $76.74 per barrel."
That's tomorrow 11/14. WTI January Futures as of today according to Yahoo Finance is $76.85 5:24PM EST
i have been waiting here ever since it was tchefuncle and even before then in some shape or form!!!! I am praying every day that this is where my eggs hatch and i can startloading up this basket more and morel. i am maxed out at what i am willing to ut in here since it is so speculative...breaking all my trading rules in something that i simply believe in!!!! MAKE ME PROUD ARMADA!!!!!!!!
Yes, the plan is to acquire the property they mentioned in last press release. If the price of oil is below the price they mentioned Armada can walk away and keep the 100k.
I think with declining prices it really does help buy cheap assets and drill for less when prices drop but they need the money. The cost to borrow the money may increase though.
I'm anxious to see what is on the table after Nov 14.
I bought more also this week. It seems to me that the company would not want to lose the $100k retainer for the purchase if they were uncertain regarding their financing. We are overdue for an update on the drilling in Wyoming. Also, we may get good news on the state of New York's decision regarding fracking in the Java Field situated in Wyoming County.
Management had previously indicated future acquisitions. Here is what was on the company website.
We are currently evaluating producing oil and gas properties in the multiple areas area and hope to complete additional acquisitions in 2014.
Days away from turning point. November 14 is right around the corner. Either they raise funds and begin producing to validate their existence as a public company or they give up and cease existence.
I think there is too much on the line to fail and at the minimum management may be setting the company up to weather uncertain times in the oil market. High risk, expensive exploration efforts are counterintuitive here.
Better to build up cash flow and maybe hedge production until OPEC decides to regain control or give up influence on the markets. I think that if Saudi's do nothing in November that signals the beginning of cuts for many oil producers which will balance out the excess supply and the price will recover.
This could be good as prices for equipment and labor may drop out of desperation and maybe Armada management can capitalize on that in the future.
I bought more during recent trading days. Good luck
Armada is flat broke best I can tell. They might be able to get another $4M for their remaining position in LA. I suppose it is possible there is a straight up bank loan involved here. The 80bpd property they already own is probably worth something as collateral.
I'm glad the purchase is being done at these levels and not when oil was over $100 a barrel.
I agree that this is a large acquisition for a $10 million market cap company. The June 2014 Investor Presentation indicated that there may be more acquisitions in 2014.
Armada continues to evaluate properties with existing production as wel as driling and enhancement potential and hopes to make aditonal acquisitons in the 2nd half of 2014. (page 4)
http://armadaoil.us/wp-content/uploads/2014/06/Armada-Investor-Presentation-June-2014.pdf
Acquisition of 16,000,000 plus? That's alot of money for a 190 BPD. Is there something behind this all? Anyone familiar with the formation? history?
Market cap is currently 10 million. Equity and debt offering is going to stretch us a bit. I'm ok with it if there is true value in the assets and not another gamble like "old armada" based on probable reserves in the region.
Also, would like to know more about progress on that front.
Any input or did everyone dump out at this point?
Anything new? Oil prices stabilized guess Saudis feeling the pressure of anything below $80 so maybe that is a floor...fear mongering about collapsing oil prices dissipating.
I suspect an offering on the table for shares to raise funds or maybe a convertible debt offering looming. Moving shares up in anticipating of such a move.
Any thoughts? Any communication with management?
I wouldn't count on any increases there to effect the bottom line. LA is a thing of the past and I suspect we have not heard anythign because of the fear in the oil markets. Everything was rosy just a month ago and now oil majors selling off assets. Armada was trying to acquire properties and raise capital...there is no way that can happen at this time without taking a big hit on equity or high borrowing costs. I think they are waiting it out. My recommendation to managemetn would be right now is to cut their salaries to break even with small production revenue until they come up with a plan to profitability....
Message to Randy Griffin: Please coordinate a temporary salary suspension with management to offset the reduction in revenue until new revenue ramps up. I know you have done this in the past and i appreciate your vested interest.
How is Armada doing in LA I Guess they shut down all the wells cause I haven't heard and news in over a year.
Looks like Armada didn't get ahead of the financial warfare taking place. I believe this is a concerted attempt to put financial pressure on russia to stop on its path to acquire new territory. Saudia Arabia is onboard and its taking a hit on its revenues in the meantime. All oil producing nations can bear a decline (remember it dropped hard from 115 to 30 in a matter of weeks in 2008/9 and rebounded sharply).
This is a necessary evil which will surely halt any prospects going forward in the oil industry. This global collapse in oil prices is prompting oil majors to announce the sale of assets which may help them weather this storm. Cash is king right now...not capital investment. Armada's only hope going forward is steady break even or above production.
The declining prices sure don't help with defining asset values for armada's assets.
good luck to all...we are going to need it!
This may be good news for the company and shareholders.
Anadarko, EOG Strike Deal With New York AG on Fracking
By Sophia Pearson - Oct 3, 2014
Anadarko Petroleum Corp. (APC) and EOG Resources Inc. (EOG) will disclose to investors the financial risks of fracking as part of a deal with New York Attorney General Eric Schneiderman.
The companies agreed to provide publicly accessible information on the financial effects of regulation, litigation and environmental impacts of their hydraulic fracturing businesses, Schneiderman said in a statement today. The companies will release the information in filings with the U.S. Securities & Exchange Commission.
“Investors and the public have a right to know all relevant information,” Schneiderman said in the statement. “These companies are setting a strong example for the rest of their industry.”
The agreement comes as the oil industry looks for ways to ease public fears about fracking after legal setbacks and concerns about water pollution. With the U.S. poised to surge past Saudi Arabia as the world’s largest supplier of oil in 2015, states are now regulating the drilling process.
Fracking, which has helped set records for natural gas production, involves a technique that shoots a watery mix of sand and chemicals underground to release gas and oil trapped in shale rock. Parts of New York sit above the Marcellus Shale, a rock formation estimated to hold enough natural gas to meet U.S. demands for almost six years.
New York’s high court ruled in June that the state’s cities and towns can block hydraulic fracturing within their borders, dealing a blow to an industry awaiting Governor Andrew Cuomo’s decision on whether to lift a six-year-old statewide moratorium.
To contact the reporter on this story: Sophia Pearson in federal court in Philadelphia at
spearson3@bloomberg.net
To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net Joe Schneider, Charles Carter
I think Oil will go back up account the polar ice has had a huge build up at the north pole this past year Maybe a bad winter. IMO
Armada has a good chance of producing oil from the well they drilled in Wyoming. The well Logs from a independent company is good. From the showing they got on these logs I am sure money can be raised fairly easy to drill a horizontal well in the Niobrara strata which has 135 feet in 3 different benches. Also they may hit a big pool of oil like the one 3/4 north of our well in drilling the horizontal well. Some of the other land we hold lease on may be even better than the one we drilled on. I have not given up yet. I believe the first well could produce 100 to 250 barrels per day IMO.
I sold some last time it moved higher pre merger talks but were shares i bought at higher prices most of what i have are at these levels...22 and under...ive been holding and buying post merger....we would have been in .20s or higher but someone and their inability to trade hit market orders....that ruined our much anticipated move ro the next level...psychologivally buyers wont rebuy or add or new buyers will be skittish about bilding a position. The thkught process is someoene in the know is dumping. Price stabilized but only soft lowball bids pushimg through...i have even stopped with buying on ask....i think the xompany needs something positive regarding raising cash and soon....they need to work rhis well ans kansas properylty asap
Biztech...you must have a GRIP load of AOIL by now unless you just sell as much as you buy.
Were you lucky enough to pick up those market orders that went through. I've been buying at .18.
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Updated by moderator on January 5, 2015:
As a result of its asset reallocation strategy, Armada has sold its properties in Plaquemines and Lafourche Parishes in Louisiana and has acquired the first of what it expects to be several additional midcontinent properties. The company now owns developmental properties in Woodson County, Kansas and Wyoming County, NY. In addition Armada controls approximately 9,400 net mineral acres in the liquids-rich Niobrara Play in Carbon County, Wyoming by virtue of its farmout agreement with Anadarko Petroleum. An initial test well has been drilled in this acreage position and the company is making preparations to complete that well and to drill developmental wells in 2015.
There are a significant number of proved undeveloped (“PUD”) drilling locations in Kansas which the company expects to drill in 2015, and the Company is actively seeking additional producing properties to add to its portfolio.
Armada Oil, Inc.
5220 Spring Valley Rd
Suite 615
Dallas, TX 75254
Phone: 972-490-9595
Fax: 972-490-9161
E-mail: IR@armadaoil.us
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