Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Results are even worse when applied to wives :)
Why patience in investing/life is necessary:
If you switched your money every year (to the prior years best fund) you would have lost in eight of the last 10 years and produced an average loss of 16% annually, even though the S&P 500 returned an average of 8% annually including dividends.
Switching to the hot fund/stock even though "the grass looks greener" is typically a money losing strategy.
Buying undervalued and waiting is the only strategy historically that works. If you can't afford short-term losses, buy a low risk index fund.
I think the key is consistency in your investment strategy.
My 2 cents.
That's why I bought large under a dime and right at it- then knowing Gaines took interest in ROIL- I acquired deep on that one as well.
this is a great buy opportunity. i think the co will file an s4 reg statement soon which will have details of the ROIL merger. tat should get the stock rolling again. I've been a consistent buyer under .25.
.14s don't seem so crazy anymore do they????? Sell me some! NOW
Question to the board......I've been looking at the SEC filings for this company and I'm confused. Is this company currently a subsidiary of another company or does it have subsidiaries? Also the filings say it became Stratex on 5/15/12 but it appears it was on OTC in late April 2012....any enlightenment on this would be appreciated.
It's been a half off sale around here lately from the bump a few months back. Good thing I bought big and cheap before the thundering herds.
bought more stock today after I sold half my position from 37 to 45 cents. I'll bet my money on gaines anytime. I have made money on him a bunch of times. he will put a big deal into this company. he always does. stock looks very cheap. I like their heavy oil project and the ROIL merger. time will tell.
I suspected Gaines was planning a strategic merge between Stratex & Richfield and invested heavily deep and cheap many many months ago.
I'm just been kicking back waiting for the fireworks.
Been there done that months ago- deep on both.
You guys most excited about Utah or what?
What's the next big opportunity here.
How many shares are still holding sell me some at .14
That's exactly what I thought first moment I learned of it-
I'm in Texas at this moment- doing my usual boots on the ground gathering intel on the Eagle and Zavala. I don't vest the amount that I do without covering my own ess a shareholder in any company that I move into. Nothing better as a shareholder to see things up close with your own eyes-playing stupid asking questions-taking pictures and vids with sound record on-without divulging who you really are. Just some dipsheet walking around interested in oil with a baseball cap and boots on- and a week old Cali Kern beard on.
I am not sure.
If everything goes as planned I guess we should see increased revenue and proven property in the next quarters. Hopefully more emphasis on that and less on salaries and litigation.
As the global economy is growing again you would expect more demand for oil as well. Probably the dispute over the Ukraine and the unrest in the Middle East (Syria) will take a while until or if ever resolved.
Do you know if Alan Gaines is currently involved in more companies than Stratex/Richfield/Eagleford ? Or is he completely focused on this ?
I think the acquisition should be good.
Honestly, I not really impressed with the 10Q. A lot about executive salaries and lawsuits and not much about how the stock holders make money. My advise is never place more than 5% of your portfolio in any of these OTC companies. The biggest risk in the oil business is oil price. I started my career as a commodity trader, and future oil price is highly uncertain. We will see how the Russian/US dispute plays out.
Current management seems to be good and aggressive. Hopefully it all works out and "all the stars line up." We all all betting mainly on the riskier probable/possible reserves (P3) play.
Do you feel positive about the merger with Richfield and today's 10-Q ?
Hope we see ramped up volume again...
Yes-I've known of him since the 80's...
STTX did not drill the vertical or the lateral, and did not incur any cost for the actual lease in Zavala. they only spent $$$ to frack and complete the well, maybe 1.5 mil $$$. that part of the EFS play only produces 50-100 bbls day on that short of a lateral. i think Gaines completed this well knowing it was not a great well, and cares about the Chalk, just like the guys from TRCH have been saying. Gaines probably was most interested in the low risk San Miguel, and had to frack the 1H well to get control of the lease at a bargain basement price.
Good good.
Trying to handle this obsession of micro-cap oil plays with balance.
Still need to get in this one. Gaines name came up briefly in a book I'm reading called the "Frackers"
Plan to get in the ocean this weekend!!
How's the mt bike?
Diamond Ricky-how are you my man? I've been in both for some time now...as always low and very deep. I couldn't be happier or wiser...how is life man?
Both companies have Gaines lets see if gains continue.:)
I'm in deep on both...
I just got into ROIL not too long ago and now...it seems I'll be into STTX!
I'll say that I very much like the professional team of ROIL and am glad to see that some will be serving as board members for STTX.
I also think ROIL is undervalued and see huge potential! As (now) a wholly owned subsidiary of STTX, I believe that potential will now be realized with Stratex.
Looking forward to the future!
My very rough calcs show this acquisition is good for STTX. ROIL was really undervalued based on current production and proven reserves - more so than STTX. Paying with stock therefore makes sense.
Trading volume should increase. Down the road probably thinking about a bigger exchange and more exposure.
Drill!!
the lateral was only 3300 ft. so that range seems about right. the Chalk is much better than the EFS. under balanced Buda is better too.
Thanks
The EF Frac well should have a better rate, but the San Miguel deal makes sense. I am currently building a development plan for a similar type oil gravity and reservoir thickness. Long horizontals seem to work. Some steam cycles can also help. The current drilling technology is truly amazing.
i have heard that the mgt would not have tracked the EFS. Gaines is more interested in the Austin Chalk. the well was already drilled into the EFS including the lateral. it will probably be a 50-100 bpd well. the real reason Gains wanted the acreage was for the San Miguel deal which the co recently announced.
Any info on how the wells are doing?
Rewrite: I hit the send button on accident on the last one.
Check out symbol: JGPK
I started buying at $0.15/share. Based on the management team, low P/E, & high growth rate. I think it will double within the next year. Like many OTC stocks they lack a MM, but the fundamentals are really strong.
I own a lot and continue to buy.
Report TOS
I like STTX's daily volume/liquidity and reserve add potential.
Drill!!
Any info on how the wells are doing?
Check out symbol: JGPK
I started buying at $0.15/share. Based on the low management team, low P/E, & high growth rate. I think it will double within the next year. Like many OTC stocks they lack a MM, but the fundamentals are really strong.
I own a lot and continue to buy.
Bernard is here- that's all I care about.
Not for sale sorry-plenty at this PPS though.
Please just 200k shares... You will complete me
Can't brother I love them too much
Sell me some of your .07s... I will be forever grateful
It's good you're here to provide some professional insight in future developments when more information becomes available!
The future wells are estimated utilizing a type curve (oil rate versus time plot) developed from analog producing wells - like existing horizontal eagleford frac wells. Typically these wells are economic at this oil price for +15 years. A lot goes into developing the type curves.
The main thing to consider for valuation is the current oil rate (cash flow) and step out opportunities - proven reserves. The rest are classified P2/3 and are greatly discounted - much higher risk. We never even placed a value on P2/3 reserves. These reserves don't need to be reported to the SEC.
I would need a lot more information to provide a professional engineering valuation of STTX. That being said, just a rough estimate shows they're undervalued if they're able to prove up some of the P2/3 reserves. I believe their management knows what they're doing. I like the partnership agreements.
My 2 cents...
Est Reserve 50 Million BO -> 200 wells -> 250,000 BO per well
How long does it take to empty a well? 5 years?
250,000 / 5 years x 365 days -> 137 BOPD
So @ $60,000 per BOPD -> valuation of $8.2M per well
200 x $8.2M = $1.64B
STTX: 25% x $1.64B / 47.5M shares = $8.63 / share
Is this in line with reality?
Considering the (approximate) $60,000 per BOPD valuation
Make that under the market analysis section.
Good resource for the latest valuation metrics ( under transactions ):
http://www.rivingtoncap.com
As well as the timeline to monetize these PUDs, P2, and P3 reserves.
Yep, I have been involved in many acquisitions and divestitures of small oil and gas properties. And prepared valuations for local property tax and for an IPO. This what I do for a living.
The valuation metrics are manly based on cash flow. Reserves are classified by P1 (proven), P2 (higher risk), and P3 (highest risk). The P1 reserves are wells drilled and step out locations. Within the cash flow the reserves are discounted respectively. SPE provides guidelines for classification of reserves. I have developed many oil and gas property valuation spreadsheets and simulation models.
In general, small producing properties currently trade at about $60,000 per BOPD (depending) or $X per proven reserve BOE. The P 2/3 reserves are greatly discounted.
I am hoping the next earnings report will state how the wells are doing and provide the P1, P2, and P3 reserves signed off by a reputable engineering firm.
Followers
|
33
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
593
|
Created
|
04/05/13
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |