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I found out why production seems so low.
I thought all of the production was in the State of TX. The State of TX production results is only for one well, out of something like 10 to 12 wells company wide.
The other wells are Kansas.
Louis J. Desy Jr.
May 2017 production? other production?
I am not sure if what shows for SGER is everything. They do have a subsidiary, KLM Exploration, that has most of the company assets. I did some searches and can't tell if they provide services or have their own production.
Last year the company had revenue of several hundred thousand, but I am not sure what makes up that.
Louis J. Desy Jr.
May 2017 production - 179 bbls
May 2017 production was 179 barrels.
Louis J. Desy Jr.
Local station at $2.29
It looks like the price rise is due to seasonal changes for the coming summer driving season. WTI is still at $50 or lower.
Louis J. Desy Jr.
Local station at $2.11
Gas prices do seem to be going up a little, but not enough to make much of a difference since WTI is all over the place, trading in a $55 to $45 range.
Louis J. Desy Jr.
Dec 2016 production - 227 barrels
IF I am reading this right, it looks like Dec 2016 production was 227 barrels.
Production Report Queries
Sterling Energy Resources is operator 819001.
The full list is available at Oil & Gas Directory - Operator Contact Information
Louis J. Desy Jr.
Local gas station at $2.08
It looks like oil is stuck at $50 or lower for a while.
Louis J. Desy Jr.
Local gas station at $2.17
It looks like the price of oil and gas is going no where. The price at my local gas station dropped a few cents.
Louis J. Desy Jr.
Bid/ask $0.0375/$0.07
It looks like the bid and ask are retail and not the market makers. I put a block of 11,000 on each side and the shares went from 10,000 to a total of 21,000; so there is someone there looking to buy or sell, and it is not the market maker.
Louis J. Desy Jr.
Bid/ask $0.0375/$0.07
It looks like the bid and ask are retail and not the market makers. I put a block of 11,000 on each side and the shares went from 10,000 to a total of 21,000; so there is someone there looking to buy or sell, and it is not the market maker.
Louis J. Desy Jr.
Local gas station at $2.19
The local gas station that I use as a measure of where has prices are seems to be holding at $2.19, not falling or rising.
Hopefully, the 2016 financial statements will be ready in several weeks and we can see if the company is at least breaking even.
Louis J. Desy Jr.
Disclosure: I own shares.
Where is everyone?
There are still a little over 10 million shares outstanding, with about 25% or so owned by directors, so where is everyone else?
Do the people that own shares in this company even know they have the shares anymore?
I never see anyone talking about the company at all.
Louis J. Desy Jr.
Bought another small block
I bought another small block, yesterday, Friday February 03, 2017.
Prior to my purchase, hte bid/ask was $0.375/$0.04 with 10,000 on each side.
After my purchase, the bid/ask moved to $0.0375 and $0.06.
It looks like the 10,000 share block on the ask was a retail investo r prior to my purchase. After my purchase it looks like the seller is the market maker, with little to none retail activity going on.
Louis J. Desy Jr.
Block at $0.0375
There appears to be a block sitting at $0.0375 of 10,000 shares. I tested it to see if I could walk the bid down but was unable to do so, telling me that it is an order waiting to be filled.
Louis J. Desy Jr.
Oil prices drop every time there is a supply report
It looks like when there are agreements announced, the price spikes; but then a rig count or inventory report comes out and shows an over supply, and the price drops.
Louis J. Desy Jr.
Oil price up on OPEC cut?
It looks like oil got near $50 on the cuts, but hard to tell if this will stay at $50 or drop over the next week.
Louis J. Desy Jr.
Oil prices still going no where
It looked like for a brief few days that maybe Iran, Russia and Saudi Arabia would stop their flooding the market with too much oil. But that all failed after some recent OPEC meeting.
Now it looks like until everyone goes bust in the oil space, that they will all keep production as high as possible to ruin everyone else.
Louis J. Desy Jr.
Gas/Oil prices near low
Recently, within the last several weeks I have noticed that teh prices at the local gas station have dropped from $2.09 to $2.06 to $1.99 and now to $1.94.
Earlier this year there were some stories about potential of oil storage being 'operationally fully' at 85% or more of capacity, and I think this recent drop in oil prices is showing that.
After the big drop earlier this year, I had expected prices would recover a little, instead prices are dropping again.
If gas prices drop to $1.90 or lower then it will be like a new low for the past few years.
Louis J. Desy Jr.
$0.05/$0.07 at the moment
It looks like the bid/ask is staying where it was and not going anywhere. A few months ago it looked like there were a few blocks sold off into the market, but it looks like that selling is over now.
As a side note, it looks like oil prices are backsliding.
Louis J. Desy Jr.
Ask seems to be rising
I also noticed that the selling pressure seems to be drying up. Where over the last several weeks the ask was at $0.06, it has now backed up to $0.07.
Louis J. Desy Jr.
Thin buying support
I did notice on the few blocks that I was able to buy, that if my order got filled at the bid, that the bid then fell to $0.021 for a few seconds, then would go back to $0.047. I think there is not much else or anyone holding back below the current high bid waiting to see if they can get any cheap shares.
In the past, once in a while, someone would sit below the high bid with an order in for a few tens of thousands of shares order in the hope that maybe someone would dump a large block on the market and crash the price, allowing them to get cheap shares.
Louis J. Desy Jr.
Bid/ask $0.05/$0.07
It looks like the bid/ask spread improved a little from $0.047/$0.07 to $0.05/$0.07.
Louis J. Desy Jr.
Web site not up http://www.SterlingEnergyResources.com
It looks like the web site is not running at the moment.
Louis J. Desy Jr.
Bid/Ask spread much better than in past
The bid/ask is $0.06/$0.07 with only 10,000 shares available on each side. This is much better than the past. When the company was in Chapter 11 a few years ago, the bid/ask difference was something like 100% (example $0.05/$0.10 with only 5,000 shares on each side, it looked like only the market marker was around to take the other side of the trade.)
Louis J. Desy Jr.
Annual Report expected at end of May 2016
I sent an email to the company with the old email address. They replied they hope to have a report by the end of May 2016. That is good since in the past it was not usually until July or August that the report would be available.
Louis J. Desy Jr.
Web site back up http://www.sterlingenergyresources.com/
I went looking on the off chance to see what had happened to the company web site address, and was surprised to see that it has been setup again. There is not much info there, but they do have a new email address and a contact form.
Louis J. Desy Jr.
Bought back in.
I started buying back in. I got several thousand shares to start. I expect to hold this until the next oil boom is going, probably for at least 3 or 4 years.
Louis J. Desy Jr.
There are financial statements for fiscal years 2009 and 2010 available from the company. The 2010 annual report was signed by the CPA firm July 20, 2011; so hopefully the report for year ending December 31, 2011 will be available in late July. If anyone wants a copy of the 2009 and 2010 annual report, I can email you a PDF of it. Just send me an email at LouisDesyjr@gmail.com and I will reply with the financials as an attachment.
The company completed the chapter 11 reorganization on November 1, 2011. Existing properties were sold in May of 2010 and the proceeds used to pay off the debt plus other outstanding liabilities. There were no changes in the common stock. Anyone who had shares prebankruptcy under the symbol SGER, or bought during the bankruptcy under the stock symbol SGERQ, should see their shares are now listed as SGER. The shares have the same ownership percentage as before the bankruptcy. As of Dec 31, 2010 there were 12,050,599 common shares. According to www.otcmarkets.com, there were 476 shareholders of record as of December 31, 2010. It is reported that Officers/Directors hold 24% of the common. http://www.otcmarkets.com/stock/SGER/company-info
At the end of 2010, the company had $2,273,612 in current assets and $44,009 in liabilities. Current assets net of liabilities, was $2,229,513. With 12,050,599 common shares that meant that net current assets was $2,229,513/12,050,599 or $0.185 per share of common stock. This value does not take into account any of their properties or equipment.
Net income for 2010 was negative $450,054. There are some adjustments that I would make to that number in order to get an idea of what to expect for 2011 and future years for net income and cash flow. I would add back the loss on sale of assets of $246,203 and interest expense of $480,222, since one can expect these expenses will not occur anymore. I would subtract $246,456 from net income which was collected in 2010 from the SemGroup LP bankruptcy as detailed in note 13 on the financial statements. These changes give a net income of $51,915, and that is what I would expect for 2011 and the futures for net income.
For changes to the cash flow for 2011 and future years, I would take the $51,915 net income just calculated, add back depreciation of $351,263 from 2010 and subtract capital expenditures of $18,590 giving $334,673 positive. This is the amount that I would expect to be able to increase cash for 2011 and future years, assuming there are no unusual changes to the company.
Stockholders equity did take a hit with all of the chaos surrounding the closing of Columbia Bank and Trust and the amount in the bank account over the insured amount, but offset by the loan amount. Stockholders Equity dropped from $6,675,565 September 2008 to $5,144,423 as of December 31, 2010 for a decline of $1,531,142. I do not blame the officers or directors for this decline, since there was no reason not to buy the new property with the $6,000,000 loan and would have put the company in a better position. It is unfortunate that loan holder would not just wait for a sale of assets to pay off the company and forced the company to file Chapter 11 in order to be able to do an orderly sale of assets to pay off liabilities and get more working capital. In the end, all of the debtors to the company got paid in full but additional fees had to be spent on lawyers. Working capital at that time of the failure of Columbia Bank and Trust was about $2 million. I expect that the reason the money was kept in an account at Columbia Bank and Trust is that is was probably one of the conditions of the loan, i.e. the company agreed to keep its working capital on deposit at the bank while the loan was outstanding.
While looking in the online internet archive at past versions of the company web site, I do see that in past years there was a report put out by Sterling Energy Resources on its drilling prospects plus I saw that for one of the years there was a wav file of a conference call. Unfortunately, it looks as though the web site had not been updated in a while and for most of last year, the web site had gone inactive. The company domain name is still registered with Network Solutions until July 21, 2012. I wrote to the company and asked if they could reactivate the web site. It should only cost about $150 per year to run the web site, excluding the cost for changes to it. I also asked if they could post financial statements from the past and current drilling reports on the current, operating properties and prospects, like they use to.
I also found an old press release for an offer by the company to repurchase 1,000,000 common shares in 2006 for $0.50 per share. I was not able to find out the result of that tender offer. Hopefully it was fully subscribed.
In addition to the above, I found one of the college investment funds had a few thousand shares at some point, plus a company called Affinity Wealth Management reported that it held 64,370 common shares as of December 31, 2011. In addition, there was a person named G. Mchutchin who filed a report about 3,000 shares in 2005, but I have no idea if they still hold the shares or not.
The company mentioned that they should have in place a warrant program like they did in 2008, which I think would be a good thing since the exercise prices ranged from $0.35 to $2.50 and give the company an incentive to get the price up over $2.50 within two years.
I hope that the company starts another drilling program for 2012 on the rework and new drilling prospects that the company has on its existing properties. With WTI prices near $100 per barrel, I would expect that it would be profitable for the company to rework existing drilling sites and institute a drilling program for potential drilling sites.
Louis J. Desy Jr.
LouisDesyjr@gmail.com
Out of Bankruptcy, 2009 and 2010 financials available
Sterling Energy Resources came out of bankruptcy last year, November 2011. The company paid off all of its debts (bank loan and A/P) by selling off some of its property. There are financial statements available for 2009 and 2010 if you write to the company. I got a copy and hope that financial statements for 2011 are available soon.
The old web site for sterling at http://www.sterlingenergyresources.com/ is not active at the moment but hopefully, now that the bankruptcy is over it will be put back up again.
There was no change to the old shares and the stock symbol is SGER again. (While the company was in bankruptcy the stock symbol was SGERQ, but if you held onto shares throughout the bankruptcy you should see them in your account as SGER again.)
I wrote to them asking if there was going to be a program put in place to drill on all of the possible well locations with the existing properties. I hope that with oil at $100 per barrel that it would make sense.
Louis.
http://www.otcbb.com/asp/dailylist_detail.asp?d=12/20/2011&mkt_ctg=ALL
maybe a boom in the am
NVM I see Ihub has it listed right in front of my nose!
Bone can you give me the spread on this bad boy?
I see that. Looks like 5k shares took out .75
Slowly but surely!
More nibbles @ .75 Way too thin! Some news and this one will rip.
.72 x .75 tight spread
Bunch of knuckleheads...
That's pretty much what was mentioned to me when I called a month ago. They're pretty serious about making this successful
Just spoke with one of the company reps and was told that within the next 60 to 90 days we should see all the necessary filings and an uplist to the OTCBB.
Looks good.
Yeah me too, I'm looking to pick up a about 10k more shares. I've been running some figures based on their 110bopd (I'm assuming that means barrels of oil per day) and selling those at $80 a barrel puts SGER at at lest $2.50 if not $5.
Wonder how much he has...
Looks like we have a seller at .50
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