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Thank you for the detailed post buccaneer. I will accumulate more when possible :)
Hello buccaneer, enjoy reading your posts. Wanted to add to my position here but have a question. It seems Sheldon/PineTree has been buying since mid Feb when the stock was around .80
On the one hand this is great, a knowledgeable guy like him buying at these levels means he expects the price to go much higher.
On the other hand though, he has been buying everyday and is 1/4 to 1/2 of the daily vol... what happens when he stops? Will the lack of buying cause a drop?
Finally, I have had a small position in this company for several years. The technology is superb as we all know, but they had to go through several years of research and validation. For investors to benefit, we need to get this product out in the market place, realistically when do you expect this to happen?
I thank you in advance for your time and answers to my questions.
Hi Jojoba, it was shameless pumping from a couple of newsletters, "analysts." eg: "Company Bullish About Iraqi Prospects" Seems the pump was short lived.
There is good support though around .7/.8 They don't want it to go lower for now...
Non, achat "Mal-Heureusement-Terrible" ;)
Hi Boomer, most here has figured the answer to those questions. Read the posts on this board and on Stockhouse and make your own conclusions... better yet, call Dale yourself.
Simply
Hi Boomer, I have been in contact with Dale and I know the answers to those questions for myself. A poster, green_CCZ has sent the questions to him nonetheless. We should see his responses soon...
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30327845&l=0&r=0&s=SNV&t=LIST
BTW, jojoba just summarized accurately what is going on, in her last post.
Simply
You did not ask the right questions and he gave you no answers.
1- Why is the drilling contractor not signing on? What exactly are the further clarifications and assurances the drillers need that we have been unable to provide?
2- Does our provincial agreement need approval from the oil ministry of Iraq or government in general?
3-We are running out of money and cannot drill without a farm-in agreement. What can you possibly offer a company to get them to agree to a farm-in deal with you, without giving out the entire farm?
4- The land use permit for the civil works (roads, etc.) has not even been issued yet, and your current farm-in negotiations failed. Wouldn't this mean that even if you find another company to agree to a farm-in agreement and get the civil works permits issued, we are looking at late spring 2012 for drilling?
5- We can't build the topping facility (running out of time and money), as mentioned in our agreement with the provincial government. Wouldn't that be a breach of our contract agreement? Even if they do accept an extension, wouldn't a new agreement need to be drawn and signed?
What a complete and total disaster! Let me translate some of what was sugarcoated:
1-Drilling:
The driller does not accept our provincial agreement and is not drilling, we are looking for some other company.
2-Permits & Approvals
The land use permit for the civil works (i.e. roads, etc.) apparently has not been issued. Because we are not drilling anytime soon, most definitely not this year, if ever.
3-Farm In:
Farm in negotiations were unsuccessful because the only valuable thing we had to negotiate with, our Provincial Agreement, is not even accepted by the driller. We are currently doing our best to find another sucker, to give us a ton of money and are throwing the 3 months out there so our shareholders don't all rush to the exit door together...
4-Topping facility
Is not going to be built in time because we have no money and will run out of what we have in 3 months... this development would be a breach of contract in our Provincial agreement...
Seriously, what a complete disaster!! All they had to do was license their technology to other companies with heavy oil fields, sit back and collect the money!
Buy at 1 cent? why? It sounds like they are going out of business!
All the above in my opinion only,
Simply
PS. Thanks small_timer for the information
Hi Petit homme, if you don't mind, I would greatly appreciate if you could share with us what you asked Dale and what he responded. Thanks,
Simply
OT: "what else are you investing on? "
Well, I'm mostly a Gold and Silver investor, with some coking coal and aluminum.
NGD, RIC, EDR, FVI, GCE, CMK, ORT...
I would like to add to the positions above, but am somewhat reluctant with the European doomsday hovering above us... Patiently waiting for a mini crash... maybe to start this Wed or Thurs??
What about you, what are you considering for investment? Maybe we should use "Private messaging" not to get the good folks on this board upset with our OT talk...
Simply
Hi jojoba:
For what it's worth I decided not to average down. I spent sometime the other day and went back to the beginning of this forum and read the enthusiastic posts by TenaciousD, MHT, and InterestedParty99... Tenacious, our board moderator is gone, IP99 no longer posts and MHT is rarely present... that by itself tells me something.
Then I read a good post by InterestedParty99 on January 15, 2010:
"Why has it taken so long to make the first deal and show results to clients and investors? Results like this would have a substantial impact to the stock and the ability of the company to raise funds and limit dilution.
Some Background:
- Sonic has run test batches through their machine to prove it works on
different types of heavy oil almost 15 months ago (Oct. 29th, 2008).
...
LET'S GET MOVING ON A DEAL ALREADY!!!
Every day European oil companies are leaving money on the table settling for less cash due to the quality of their oil. How hard can it be to sell the prospect of a company making more money with limited risk?
Pack the test machine up and use some of that $500,000 to send it to and organization interested in making more money."
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45529087
Yes, Oct. 29, 2008 was when they had the heavy oil technology, that was three years ago, and what have they done with it? NOTHING! It doesn't matter who the CEO is and what success they have had in the past IMO, the record here speaks for itself... at least it does for me.
I hope .08 holds here and we don't find ourselves in .07s, because I don't think there is anything under that and selling might pick up as people try to salvage anything they can...
Simply
Hi Killawhale, yes, seems a lot of people drank the cool-aid... but that is the allure of the juniors, "The Story"... let's see what the future holds...
Simply
I honestly can't see how a Farm In/Out can be done at this juncture. Western Zagros has established wells, is in Kurdistan (which if you know the area is completely different from the rest of Iraq), market cap of 150 Mil, and accepts 46 Mil for a 20% stake in the company.
Let's see, what do we have at SNV... Market cap of 21 Mil, probably about 3 Mil in the bank, a contract with a provincial government, drilling companies that need confirmation of our permits and approvals or else the job will not be done... Technology that at the end of the day has not really been tested on a grand scale...
We need about ten Mil to drill, after all permits and approvals are granted... What can we do, sell 50% stake in the company for 10 Mil?... Seriously, under these circumstances, would you invest a large sum in this company?
Stock came out of the abyss finally, is this the final dead cat bounce... or contracts are finally signed? We shall know shortly... One thing for me is certain, if the financial markets do a nose dive a la 2008, SNV will find itself under .5 cents easily IMO...
I just kick myself for being so stupid, I had gotten out in the high .30s for all the right reasons, but listened to that interview with the CEO in July/August, just before The drilling contract was supposed to be released, and bought back in at .22 What was it he kept repeating, oh yeah a very low risk high reward play... or something like that...
Simply
More answers from SNV...
Hi Dale:
I truly appreciate your prompt response. Three questions:
1- Why is it taking an eternity to sign a contract with a driller. Is it because SNV does not have the money to pay them for their work?
"No, our finances are not related to the signing of the drilling contract. The contractor is seeking confirmation of our permits and approvals. We have provided information and are working with the government to provide comfort."
2- Wouldn't it be better to drill one well, considering SNV's limited resources, get the stock price to rise, and provide better negotiations with the farm-in company?
"Drilling one well is an option. Our preferred option remains to be drilling three wells."
3- Are you currently in discussion with anyone regarding the farm-in, if yes, what stage are you in? Any info regarding the farm-in prospects would be greatly appreciated.
"Yes we are in farmout discussions. The status and parties are confidential and must remain so from a negotiating and securities law perspective."
SNV answered my email...
Hi folks:
I wrote to Dale out in SNV this morning and he has already sent me a reply:
"Our most recent news release (August 29th) addressed what has been accomplished. Management is working diligently to provide the preferred driller with the comfort that it is looking for on our permits and approvals. That is the news that the market is looking for and will be released as soon as it is accomplished.
At June 30th, the company had $7.3 million of cash. The drilling program is expected to cost approximately $10 million, including civil work, security etc. As stated in our second quarter MD&A, we are in discussions with industry partners on a possible farm-in on our prospect or license."
Thanks for your input MHT - eom
"Do you think there is hope for a farm-in agreement or some kind of 'white knight' that will save the day?"
I honestly have no idea, wish MHT would chime in here... These guys have been late with everything they have set out to accomplish and have been extremely bad with press releases and informing investors as to what is going on...
Sad thing is, many of us are in this stock because of the experienced, capable management... Their actions to date have been anything but that... Not bashing, just stating the facts... and upset that with all my years of experience I still got suckered in and became a bag holder... too late to sell here, IMO, might as well wait for a miracle...
My only hope is, they will be able to pull something out of the hat... Announcement of drilling contract would be good, actual drilling could save us "investors"... but do they have enough money or could they actually line up all the ducks to pull it off?... Don't know.
Anybody still in this? Sure looks like the company is going out of business... stock is not even capable of a dead cat bounce... anyone spoken to the company lately? MHT any opinion would be welcome at this juncture... thanks,
Simply
It may be a good idea for all of us to call them up,ask questions, and show our displeasure with the lack of communication...
Hi Killawhale:
About a 30% decline in one month, since our discussion. In the absence of tangible news, this thing can find itself in the teens this summer... Of course news of a deal that generates some cash flow and we'll be north of .50 in no time. Will we get that news before the summer doldrums?
Until now, lots of plans but nothing an investor can really sink their teeth into... I know, put some money you can lose into this and come back in three years... either it is gone or you have a ten bagger...
Simply
Good post killawhale. I may have been misunderstood in my first post, for I did not mean that Sonoro's technology has failed in Albania, but that the venture has... for electricity reasons or whatever the difficulties may be...
In general, we are in agreement and have put our money in SNV because we have seen the same qualities in this company... Nice discussion, hope you enjoy your weekend.
Simply
All right killawhale, I'm obviously frustrated for sitting on dead money for months and months... You wrote:
"First, we don't know that Albania is a failure. Period. We know it is taking longer than expected and has run in to some difficulites getting up and running. That's it. Anything else is just speculation and rumors."
I disagree, the company has effectively dropped Albania from their news releases. Would you please click on that Investor Presentation link given in the previous post, any mention of Albania? Wasn't the project supposed to have been operational 8 months ago? Not even one update of what is going on? Don't you think it is speculation on your part to think they have just ran into some difficulties and we will hear shortly from them? Mind you, I don't think this means their technology has failed, because there could have been a number of problems.
"Secondly, you ask if the debt financing is coming? I think it is very apparent that management is working hard to secure this. They know the stakes here. You pose that question like it is a 50/50 chance of happening...I don't think that its like that at all. IMO, its a question of when?"
Why, have you read something we haven't besides the company saying we are after this? What makes you certain they will get it?
"we do not know if the impact of the unresistricted shares is even going to have an effect on sp. "
Agreed, but we know something, the effect will certainly not be a positive one...
"you miss the part where we have a proven and experienced management team"
I thought it was understood, I would not be writing on this thread if it wasn't for their experienced management and recent members of the board... but show me something already!
"there is a difference between a higher risk/reward investment and a roulette table."
To each their own, for me at least on the roulette table it is you who are in control of your money... here you have no idea what is going on... a lot of promises and great plans that don't seem to come through...For me this high risk/reward investment is nothing short of a gamble.
Having said all this, as I mentioned, I'm just frustrated by the lack of news... everything can still workout for this company and all our expectations can be fulfilled in YEARS to come... :)
Thank you everyone for bringing this board back to life... For me we have reality vs dream here. Reality is, the company has an unproven technology and the one chance they had to prove it in a small commercial scale, has failed. Management doesn't even mention Albania anymore, so face it the venture was a failure, period. Fact, 20 million shares are hitting the market shortly and we are getting close to the month of May, where most intelligent traders sell and come back in August/September after the market has had its usual summer slump. In the absence of news, who knows where the share price could go.
Now, for our hopes and dreams... Yes, a supply agreement will rocket this thing, and debt financing will show confidence of bankers/investors, putting their money into this venture... but is it coming? Someone mentioned releasing news before the shares hit the market to soften the blow. Well, if they have no news to release, what are they going to do, reaffirm their intents again? And about that article, we all know with very little money from the PR dept, one can have such things written, but what does it say really? An unproven technology that could have tremendous potential, heard that before?
I realize this is an extremely risky venture with blue sky and all that, but has anyone considered what would happen if the only thing we have going for us, the contract in Iraq, hits problems? Say another part of the government, or some newly appointed officials, start disagreeing about this sweet deal and decide to renege the whole thing...Think these kind of things don't happen? Of all places in Iraq?
Guess if you have extra cash you don't need and want to risk it for potentially a big payday, very much like the lottery, you can throw it at this thing... but one has to realize that right now this company could not be considered an investment, we are at the roulette table, so place your bets...
Best,
Simply
Am I the only one, or the complete lack of news, for months, has others concerned as well. All we have gotten is "what we are going to do..." Albania forgotten, Alberta/Shell who knows??
If it wasn't for the insiders buying so much I could easily see this below 5 cents... We don't even really know if the technology works in commercial scale... Just blowing off steam... this board looks dead anyway... and I don't blame people for not posting...
Frustrated,
Simply
"Addora and others, what is not to understand?"
Seems you were the one asking questions...
"Another Latest Private Placement? Why?"
"Board posters, what is your opinion regarding..."
Glad you made a ton of money, better than SXL I guess
Thank you for your reply InterestedParty99, as previously mentioned, I find your posts insightful.Glad to hear you are staying invested...
I think the problem I am having is that management has not clearly outlined what exactly they plan to do, and what the potential profits of their plans could be... They have raised a lot of money now and diluted quite a bit... I think they owe shareholders a little more than the two general sentences they have provided; specifics of their plans are missing, and I hope we get some clarity soon.
Best,
Simply
With all due respect InterestedParty99, and I truly enjoy reading your posts, but I don't buy the idea that they just raised 15 mil to go aimlessly poking holes in the Iraqi desert in the hopes of finding some oil. Considering the failure rate in that, even in a place like Iraq; it is absurd. For me, this is an experienced management team which to date have implemented sound strategies and plans.
I think they know what they want to do and need money for it. When they have finished raising the money and have put their plans in motion, they will let us know about it. I just hope we hear some good news soon, it is overdue... guessing news right after closing of the pps.
It just makes no sense... let's raise 5 mil and because it becomes oversubscribed, let's raise another 10 mil?? And dilute to the tune of 60 million shares?? They need the money for something IMO.
Yes I fully realize that "the lower financing is also in the favor of insiders;" maybe someday someone would come up with a novel idea where management would actually work towards the best interest of the shareholders... ;)
And yes, I have seen financing done above the market price plenty of times... It's OK, I'll get over it, just having a bad day :)
Didn't like the .25 price. What, the Financiers didn't see enough potential in the company to agree to do it at .35 ?
I'm naturally still very positive on the company and what they are doing, but I never like to see financing done below market price.
News From Management D & A
Albanian PetroSonic Joint Venture
The joint venture continued to purchase and receive equipment through the third quarter with the concrete base completed, the building to house the Sonic reactor delivered, installed and optimized, and tanks and vessels completed and delivered to site. In addition, equipment such as the de-asphalted oil heater, separation vessel, and exchangers were all delivered to site.
Delays have occurred in tying in power to the site and subsequently, with getting the Sonic
reactor into optimized resonance with the different electrical configuration suitable for local conditions. Both of these issues have been resolved and the Sonic generator is now in operation although local city power upgrades and related outages continue to create an operational challenge.
The Sonic unit has been testing local heavy crude oil from our joint venture partners with the estimated minimum expected 6 degree API increase in the de-asphalted oil and samples being sent for further analysis. The joint venture is expected to review these results with several potential off-takers for the de-asphalted oil. Once this has been satisfactorily concluded, the joint venture will look to complete the installation of the facility with appropriate power solutions for
continuous operations.
The joint venture partner has continued to support local costs with the construction of the facility, however, it has not completed its commitment in paying for additional sourced equipment from abroad towards its $1million commitment. The Company has incurred approximately $255,780, which it would expect to receive from the joint venture partner as the project proceeds subsequent to final results and off-takers being confirmed. It is expected that an additional $400,000 of capital expenditures is required to complete the project with the majority of this cost being the
naptha condenser and oil cooler. Timing for such completion, subject to favorable analysis and off-take interest, is now expected in early 2011. The Company will rely on the joint venture
partner to cover these costs and complete its commitment.
SonoAsh Joint Venture
The Company achieved what it believes to be unparalleled results from its batch and continuous flow through processing of non-recycled bituminous coal combustion fly ash. A first set of international patent applications are currently being prepared for filing in countries having large volumes of non-recycled coal combustion fly ash, including China, India, United States, Australia, Japan, South Korea, Indonesia and European countries. The first of a second set of international patent applications is being prepared for filing now.
The Company believes that its results are a significant step in moving this technology application through the test phase into commercial piloting. The Company will be reviewing the results with Nalco Mobotec, before year end, to determine the next steps which may include partnering with a power plant operator for a pilot facility as the next phase of development.
Are you serious? Having a bad day?
I already wrote in my first post that I could be wrong and this was my opinion. In my second post I said "I stand corrected."
I also mentioned that this had no importance on this company, whether true or false. I would not have commented on it if I had not lived here for 30 years and had never heard of the place. Now will your highness forgive me, or is it off with my head! You are being ridiculous, pick on someone else Jojoba! This is the end of this conversation.
Guess I stand corrected Jojoba... On the other hand, as I mentioned previously, I grew up in DC, got my undergraduate and MBA degrees here... and have never heard of this University... It's no big deal, a completely insignificant detail for investors of this stock... thanks for the additional info.
In all fairness, I have lived in the Washington DC Metropolitan Area for 30 years and have NEVER heard of "Southeastern University, Washington DC, U.S." Out of curiosity I checked them out... Did not find a website or location and their "accreditation" seems to have been taken away in 2009.
Not taking anything away from our major Banker, as I'm certain he is a big shot in the middle east. But this University where he got his MBA looks like one of those where you order your diploma by mail... I may be wrong and this is just my opinion.
Simply
Thank you Lee Kramer, you are extremely kind :) I don't day trade anymore, actually hardly trade... I started following Zeev on Silicon Investor in the 90s and came with all the gang over to IHub when he moved... What an incredible person he was, not only in trading, but in his life. I still vaguely remember some of his childhood stories, during the war... Anyway, thanks again for being so hospitable... will try to check in more regularly :)
I'm glad to see this board is still busy, I'm certain that is how Zeev would have liked it to be... More power to you guys!
It feels as though every time it gets close to .36 cents, they beat it down...
It's Alive! Let's hope we get more than a bounce here.
RR you expect the stock price to be negatively affected by the warrants after April 20?
"If KCL gets down to where i figure it goes i'll jump back in"
Where do you figure KCL will end up RR? Thanks.
Good bye my friend, I will miss you...