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Not being familiar with any of the operating agreements or sales pitches, one may never know if Breitling was carried thru or to the tanks. I'm curious to how SHs would benefit if Crude or Patriot were involved with the 25% override. The other question is if the lease was paid up or another farmout. I'm sure the answers are to be found in the filings, somewhere---assuming reliability
I would assume the 25% override would immediately generate cash flow for one of the Breitling entities, again assuming the well is producing
Basically, but I would assume BECC is carried to the tanks, then in for operating costs. In other words, they are getting 25% of the well without paying for any drilling and completion. Otherwise, they would have said 25% override, but they don't always use terms in the normal way.
Also, I am not sure which shareholders you mean. Direct investors pay Breitling's way. The carried interest would generate income for BECC if the well ever established a positive cashflow. That would benefit BECC shareholders if BECC ever made a profit.
So in Yugos and Buster Brown terms, that means SHs are paying several million for Breitlings 25% carried( (no monthly expense, elec. water haulin or work over rig and parts expense) and are paying Breitling getaway money for administration? Oops, forgot several hundred monthly for the pumper. DAM! Willie Sutton missed the boat
According to one report, BECC is selling 1% interests in a $3.5 million well for $80,000. You might think direct investors are paying $8 million a well, but BECC is carried for 25%. That means investors are paying $10.7 million per well. BECC gets $3.6 million a year in administrative fees to administer who knows what, but Patriot has only pushed a handful of wells and they have been basically the same ones for a year or so. A barn-burner will hardly make any money for the direct investors at any reasonable price under those terms.
My theory is that sort of promote on wells is not sustainable. It works for a short time during the excessive exuberance of a price spike, but fails when prices are dropping or low. While not a Ponzi scheme, it requires the same sort of expanding number of virgin investors and those are only available during the feeding frenzy of a boom.
While there is no evidence of what BECC's finances might be like, except, of course, the mounting judgments against the company, I strongly suspect Patriot is not able to make its obligation to BECC. In a word, it's over.
Yep. While not illegal, it really confuses the average investor. I could mention the advantages of subterfuge and camouflage inherent and would have to assume that those possibilities combined with lack of current filings are sufficient to ground this stock. As an investor, one should have expected wells drilled and cased to be completed in a timely manner. While never seeing a Breitling prospectus or any type of operating agreement between the parties, it's still more than safe to say that SHs have been damaged and folk funding this scenario are likely seeking legal solutions. Can anyone(reaper) post those agreements?
All those divisions really muddy the water. I think I remember Texaco issuing a press release saying, "Holy Smokes, this is complicated, we will get back to you real soon." A company like BECC with three divisions and ones of employees is certain to have trouble.
The Seely Oil-Hankamer No. 1, 4235130907, was completed in January 2015. A fairly respectable 4 point test was filed. No production has ever been reported in the intervening year+. Last comment on the PI card is that they are waiting on stock tanks. That was in April 2015. It is possible that they were unable to find a gas purchaser. There is gas production in the area, but there may not be a gathering line close enough to warrant hooking up the well. Who knows? However, CF would have known the situation with the Hankamer at the time he wrote his now famous letter to loyal investors.
LOL. I will provide a BIG CHIEF TABLET if you will fund a No 2 lead pencil. Electronics no longer necessary, as Breitling has discovered the diff in one gallon and one barrel. I realize this is a giant step for this non reporting company and hope the lessening of forest decimation can be realized by the lack of filing by these 3 operating divisions of this Wall Street Giant. Yep, kudos to Breitling for doing their part in preventing global warming
I actually hoped you would "man up" and speak the truth about the viability of the lower zones and that the poor showing of the completed zones were completed only for the reason of being the excuse of depleting shareholder funding for the project-if you get my drift. I suppose moving the well bore across a short distance past the next county line would have resulted into a gusher. Verdad?
I hate to be a nattering nabob of negativity, but I am starting to lose confidence in what CF says:
"Because of the extent of the 2013 re-audit combined with the complexity of our three operating divisions, the initial audit timeframe (sic) exceeded expectations thus delaying our 2014 financial statements. Management, our auditors and our financial statement consulting firm are working diligently to complete both audits and the Form 10-K as soon as practical."
"The Sellers '66' #1 well was spud in March, reaching a depth of approximately 8,600 feet and is on target for fracturing operations in the next 30 days, again on a no debt basis which is critically important in this environment."
"The Company participated in the Cole #1 well, which reached total depth in May hitting all targeted Permian zones. Fracking and completion proceedings are expected in the next 60 days."
"The Hankamer #1, in which the Company owns a non-operated working interest, was completed in Newton County, Texas in an established area known to management. The vertical well encountered two expected pay zones in the Norian Yegua field."
Elaborate on what exactly?
Are you asking about the overall CWEI farmout agreement that you claimed for months and months didn't exist, or are you asking about individual wells that you then claimed were bad, before you even realized which county they were in?
LOL, IMO and FWIW.
Reading your last post brings me to an extraordinary conclusion- drilling investors is more profitable than drilling poor wells. The last filing Breitling remembers occurred in his manicurist salon. I wonder if they served Boones Farm?
Don't worry mackfish,
I am sure BECC will squeeze off, re-enter, deepen and kick-off the Hoppe as soon as it depletes. That's probably what the extra 4.5 MM$ is for. That would double the number of horizontal wells they have drilled.
IBIN lOSING SLEEP wondering why that deeper zone wasn't horizontally completed and fraced by one of Breitlings publicity hounds. What a lost opportunity for shareholders. Care to ( big word) elaborate?
I still get a kick out of how many names Mike Miller has, I actually still to this day think Mike Dustin Miller was skreech on saved by the bell..
They should both be in jail
PS under .03
Sub penny shortly!
IMO
Interesting. My general view of the board doesn't show that post as pinned. I can see it in my other view and will remove it in time.
I will leave it there for now so people can see that it was a mistake that I made, while looking at TRRC filings. I mistakenly posted permit depth rather than completion depth.
However, I don't recall your questions and have no plans to look for them.
IMO and FWIW.
No ultimatum. But if I cannot narrow down the nature of your misconceptions, I have to type too much. You know that post you pinned at the top of this board containing nonsense sprinkled with incorrect statements about well depth? Follow that thread and you will find my questions.
I don't understand your point. Care to elaborate?
LOL, IMO and FWIW.
Hey reaper. Looks like Isaac Newton was right
LOL reaper. Breitling sending out rebates yet for the incomplete wells? Must be a little embarrassing to back woebegone amateurs drilling crap wells on crap leases. You sure did well in finding the Nonesense here, congrats
Well mackfish,
Considering that it took me a couple of months to convince some people that the agreement even existed to begin with, along with another week or two of explaining which county the agreement was in, I am comfortable in making the observation that some opinions are just nonsense.
LOL, IMO and FWIW.
LOL reaper. The Perfectly Precise Point is that Breitling and Steller, two amateurs playing " 0il co" leased a worthless parcel from a more capable trader. For sure, Claty knew the lease was crap. The question now being did the amateurs know? I have my opinion regarding that possibility, but investors paying for their classes in a non accredited school should get their money back. Guess who forgot the quarterly report today?
Pffftttt FM 11,
Wait…what?
I recall a post describing the TRRC info as worthless, irrelevant and out of date. Now that same source is being utilized to prove or question an insignificant issue. I believe this discussion should be left to professionals that are likely willing to answer unnessarily addressed questions relative to discovering or producing oil or gas if asked in other than an adversarial manner. For sure, the question wasn't asked or answered by Breitling
Reaper,
There is a lot you don't understand. I can answer your questions with two sentences. Because he didn't think it was worth it. I only expressed a reserve opinion on producing wells. No more questions until you answer mine unless it is interesting.
LOL reaper. The " target" was always JI and SHs pockets. This isn't a geology or engineering board, however, I'm happy to inform you the Fusselman and Cline development in Breitlings area are poor. It wasn't necessary to look at logs or pressures or history to make this claim.
LOL reaper. The " target" was always JI and SHs pockets. This isn't a geology or engineering board, however, I'm happy to inform you the Fusselman and Cline development in Breitlings area are poor. It wasn't necessary to look at logs or pressures or history to make this claim.
LOL, FM 11,
I did notice a few things though after taking another look.
About 1200 ft north of Breitling’s Sellers 60 #1 that has yet to be put into production, is the original Sellers 66 that has been producing for about three decades.
The completion depth on that prospect looks to be about 8700 ft, targeting the Fusselman formation, which would also incorporate the Cline formation.
Isn’t that almost 2,000 ft deeper than two of the three CWEI leases @7000ft that you have based your ROI projections on?
I don’t understand why Clayton Williams CWEI would drill short of potential pay zones that had already been established in the mid 1980s.
I also don’t understand why someone would base their production models and ROI for JI partners based on those shallow wells, while Breitling’s approved permits are deep enough to incorporate the Cline and Fusselman formations that have been successful in the past.
Isn’t there more potential on those deeper pay zones that Breitling is targeting?
IDK, IMO and FWIW.
OUTSTANDING&ACCURATE. Takes experience to post a capsule of information from the diverse sources in this example. SEC investigative criteria will or have already followed the same trail you exposed. Investors shouldn't be surprised by sanctions within the next 8 months. Admittedly, this is a small fry operation, but the FracMaster has painted himself to be targeted. Can anyone picture the scolding Don Imus would give Stu Varney about his sessions with the Fracmaster following today's posts? There are zero mineral owners in the Parremore area that would allow an operator to run off and leave a well shut in and incomplete or not completed for a year. Lawsuits, lies or shut in royalties are in effect at this time
I am not implying this - however it is very common for many of these drilling promoters to 'oversell' the well lets say to 500% Working Interest owners.
This generally works out fine if the well is dry, however if they need to complete it, produce it or put surface equipment on to place the well into production this is usually when a problem starts to occur as proper payment can never occur.
I have seen this occur SEVERAL times in recent years by some popular dallas promoters.
Just to pull things back on subject, the problem with BECC drilling bad areas and hyping bad wells is that disillusioned direct investors are created. Completely new direct investors must be found and that takes money. It takes PR firms who are paid. It takes media outlets that are paid-up. It takes industry magazines who expect to be paid.
Now, BECC can form up an indefinite number of corporations so that its name and Chris Faulkner's name are not associated with the "retail" operations. Investors who fail to research the connection are just what BECC is looking for. So Patriot Energy and as many reincarnations as needed can continue to find virgin investors, but regardless of name, oil finding talent is needed for the exponential growth needed to justify even the current stock price. I have seen many companies like BECC and actually tried to name some on this forum, but was deleted. My guess is that CF and his friends will not make it to the next price cycle.
The above is my opinion and admittedly, I am still bumfuzzled that CF achieved the credibility he used to have, so take my opinion for what it is worth, but remember I have been right about all things that matter. The only mistake I have made on this board is that one time I thought I was wrong (old joke, I know, but it is basically correct).
I am sure that there are traders who have made money and lost money on BECC. As far as I am concerned, traders in these effectively defunct penny stocks are in a high risk business and they know it and they can take their chances. I have no problem with that. I do have a problem with CF as a representative of the energy business. I think it was a mistake to give him a pass because he was promoting fracking. When he is discredited, everything he has said will be discredited. A lot of what he said was correct. He is relieving money from the uninformed and perhaps momentarily careless. I don't like that. It is embarrassing to the industry and makes it harder for legitimate oil companies to operate. It also invites costly regulation.
For those of you who like high risk trade, buy or short or whatever you do. Heck, BECC might be the target of a reverse merger.
And by the way, this information comes from the driller and from the logger. These are the original sources that CW would use to determin the depth of the well. I just can't resist:
I've got your answer right here. I did bother to look it up. Did you?
I did bother to look it up. Here is a summary of what I found. There are still three questions out there, but those are problematic, I suppose.
None of what I said conflicts with CW assuming that TRRC reported it accurately.
Some posts shouldn't be taken seriously.
You are right. We are are total agreement on that one. Your recent comments about my posts are nonsense and when I asked you some simple questions, suddenly the subject is changed.
It is much easier to talk about mythical anti-frack bloggers than deal with reality, I suppose. Care to back up what you said?
Reaper confusing permit depth for well depth (TD) is the more likely explanation.
ROFL, reaper.
9000' is the permit depth, not the depth the well was drilled to. The well was drilled to 6900'. Is this perhaps out of you depth?
http://webapps2.rrc.state.tx.us/EWA/leaseDetailAction.do?selTab=1&methodToCall=displayLeaseDetail&rrcActionMan=H4sIAAAAAAAAAMWTS4vbMBDHP417MRhp5Cj2YQ5q1i2BrJMqoSGEPWhjkRU4sZEc2gV_-EruI6-WhR7aizXzn4dGP0s9JQRZTwlFeGftTuw60xzlzlZb8oSD_kU_q7Z1kPhw4jrV6aT7mpxcxERGfAZgBB-KtfAmC2ZlTV2b436h7cF07tNJ29fvbZOq8UkpHnT30lSrZqLq2gsjtLo72eOqWWpldy9eypDcTbN1Q1TYvUtaZdXhs6pPehjS90wZDcYIn_XeHN3adKEPGWMOKYc02Nl1jMKNf1l7szv9dyzcTwYcW7XX9uKsvwVDn7a3eWFYpD0gJT1DyvoUST9C6LlX7sv_I1f4S661Vk4_6E6Z-g2clXFtrV5n54I_o6V3020vNgrSLSBKAiDGgEPwGLI85QEK9e_Jo_nlAi6ElOJxLos4AuDcf4Lu_0wWGAKq1pThDP49jmkenqTnkpKcX4dpfibvycZ8TOM42BznYcnOYSC4ns5mU_G4jGAST2Zis5qXcVEW8uMmKNNykoQ8igEsAGYjyAgjA3F25aW4XEjxvpBy4-fPVrIoH2IhCxFBfk_tjQv54z7S4T5-A7Nz8jaCBAAA
LOL reaper. Blame the incompetents delay on the internet simpletons and antifracing bloggers. The probably dropped an upside down bit in the hole____ cause they determined they had been scammed. It's never Breitlings fault, they only ran off after payday. The mineral owner can complete the well at his leisure, assuming he is encouraged by logs and pressures. Something tells me that will not be the case
LOL reaper. Blame the incompetents delay on the internet simpletons and antifracing bloggers. The probably dropped an upside down bit in the hole____ cause they determined they had been scammed. It's never Breitlings fault, they only ran off after payday. The mineral owner can complete the well at his leisure, assuming he is encouraged by logs and pressures. Something tells me that will not be the case
Wrong again FM 11,
I've got your answer right here. I did bother to look it up. Did you?
According to the TRRC, the initial CWEI Parramore 66, "671" well was the deepest @9000 ft.
The offsets weren't drilled as deep.
The CWEI Parramore 66 "651" was drilled to 8300 ft and the CWEI Parramore 66 "672" was drilled to 7500 ft.
If you have information that contradicts the TRRC filings for Clayton Williams in Sterling County, now would be a good time to post it.
I guess we have finally found some common ground.
Some posts shouldn't be taken seriously.
LOL, IMO and FWIW.
jpo,
I did acknowledge your posts. The relationship between Breitling, Crude and Patriot are in the SEC docs and has been discussed several times here. There was even a PR.
We also already knew that the Sellers has yet to be put into production along with other some other Sterling County prospects. I don’t know the reasons for the delay, since I have never had any contact with the company.
I cant pretend to know what direct investors are and/or were told about the progress of their investments. I also have no way to confirm or argue about which investors paid what for their interests in any given well. That is not public information.
What I do know, is there are internet bloggers and anti-fracking buffoons that are posting information about Breitling that is either incorrect or irrelevant.
I know of at least one person that has posted irrelevant or incorrect information on several blogs and boards, under multiple aliases, including here on ihub.
I do hope your investment in the Blue Wolf prospect eventually yields some nice returns.
GLTU, IMO and FWIW.
My apologies, I was making a joke because the first well, the 671, is the shallowest. Wouldn't be funny to people who, rightly, didn't bother to look that up. Still waiting for reaper's answers.
The only redeeming factor, you can determine the tax loss, due to the lost lease. Welcome to come world.
Reaper, why not acknowledge my posts of the obvious scam here?
I am a direct investor in Breitling's Sellers 66 well which was marketed as the Blue Wolf.
Regardless of past operator's results on this lease, Breitling drilled a well to the deeper formation more than a year ago. To date they have not placed production equipment on site so no checks for me nor Breitling.
Now I am hearing the the mineral owner is upset with Breitling over non performance...perhaps taking back the exploitation rights since the lease is not held by production. Unconfirmed at this point.
Losing the lease will be the end for this apparent scheme.
I'm trying to figure out how the 671 is deeper than the 672. mackfish, if you can help me with that, please do.
I can answer that question, assuming the WITNESS not being willing. In the spirit of fairness, he MAY wish to take the opportunity and I can temporarily defer
Reaper,
I am going to make this brief so as to not distract you from the backlog of questions I asked you and you haven't answered.
I didn't think it was important. There are a lot of things I didn't mention about these wells.
I have a question for you. How is hole beneath the producing interval important?
If you answer that question, I will go into more detail.
Oh, just three more questions. How does rathole relate to ROI calculations? In the case of the CW wells, their production is historical fact for the most part. As far as the Hoppe, how is the fact that CW drilled to 8200 feet but completed above 6808 relevant to the Hoppe ROI?
When you discussed the CW Parramore lease being good, why did you leave out that there are three wells on it. Seems that would be relevant to economics?
Like I said in an earlier post, your idols gave Claty a free look at Cline development in the area. The Cline was not a known target or producer when the offsets were drilled. In any event, it's still an economic failure
LOL…FM II,
OK, I did some TRRC research and have a few questions.
From that less than optimistic post, I believe Investors may want to make a change in their will. Cement is a better solution, as attys don't seem in favor here. Didn't someone declare Breitling to be marching forward with new sponsors being trucked in and going forward with new prospects? No worries, the Tex RRC will see to adequate plugging at taxpayer expense.
.
Yep. Once you have a model of future production, you can test sensitivity. I ran the model from when the Hoppe was drilled. It takes $350 per bbl oil to pay out a 3.5 MM$ well like the Hoppe. It pays out in 12 years. So if you get a modest $300 price increase for oil, you may get your money back on a future well like the Hoppe. If an investor buys into the well for $8 million gross, a modest $600 a bbl increase will get his money back in 21 years with zero percent IRR.
OK, let's look at reserves. If a well like the Hoppe, given $100 oil, declines not a bit from the Hoppe current rate of 10 BOPD, You will get your $8 million back in 33 years. But....within 100 years of well life profits will be $47 million dollars. That's an IRR of 3%. Better than a bank savings account, I suppose...if you ignore the risk.
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