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Everybody is in wait and see mode... we are waiting for news from Belize, Texas and Kansas. This is a bad week for news .. the company might as well keep its powder dry and release on Monday.
Oiljob
Just tell me that they sold their July and August oil allottments. Oiljob
We need to start spinning our bit. Oiljob
A little tune to amuse while we wait for Princess #1 to get drilled:
Just Google ""C&C Petroleum" production July 2011" and the first item on the Google hit list is a Texas Railroad Comm. report showing our individual lease production. Oiljob
P.S. It took me about 5 minutes to figure out how I got there myself.
Teco,s Texas production is posted on the Internet. Go to the Texas Railroad Commission website. These are public records. The producer is C&C Petroleum. My math suggested they produced 980 barrels last month. Oil job
I will promise to stay off the phone if managment will promise to sell "all" their oil. Oiljob
P.S.: Which contract are we suppose to have lost?
Let the wildcatting begin. Oiljob
P.S. This is the best lotto ticket I ever bought :)
P.S.S. Unleash the Kracken
3-D seismics can improve your odds of hitting a commercial well... up to a 75% success rate. We have a good aerial survey. I would rate our chances on the first two wells between 50-65%. Oiljob
Perhaps as little history lesson:
Seven Wells Of Dammam
The first six oil wells that wildcatters drilled in Saudi Arabia were nothing to write home about—and then came No. 7.
First come the geologists. They travel light and move on quickly over unexplored ground, searching for exposed clues that may lead to hidden oil deposits. Next come the wildcatters who drill the first well in an area where no oil has yet been discovered. They need a bunk-house and a cook, the seed and root of a camp. If luck is with them and their drill brings a show of oil deep in the earth, a fixed camp will begin to take shape around their rig. The camp will serve a complex venture—the development of an oil field. One day a family cottage appears; wives arrive and civilization walks into the wildcatters' bunkhouse world. A community is born.
This simplified succession of events is one of the distinguishing patterns of twentieth-century life. Allowing for local variations, it is a pattern that can be traced where-ever on the globe men have gone in the great hunt for new oil fields. Swamp and jungle, mountain and plain, coastal waters and blistering deserts have witnessed the silent passage of geologists on reconnaissance, the anxious days and nights of wildcat drilling, and the slow emergence of supply yards, roads and homes. And many times, these distant oil frontiers have seen the wildcatters pack up and leave, the cookstove cool, and the bunkhouse grow silent when the drill bit failed to discover oil, or at least enough oil to merit commercial development.
In the middle 1930's the pattern was vividly acted out in the desert of eastern Saudi Arabia a few thousand yards from the Persian Gulf. There American wildcatters drilled six wells and were nearly withdrawn from what appeared to be a costly failure before their historic well—Dammam No. 7—struck oil in commercial volume.
The story begins in the spring of 1933 in Jiddah, an old and storied city on the Red Sea. There, representatives of the Standard Oil Company of California and the government of King Abd al-Aziz Al Sa'ud signed an oil concession agreement. No one really knew whether there was oil in Saudi Arabia. The American oilmen were anxious to have a look. By the time the 1933 football season was under way back home, two Socal geologists began to explore the concession area, a desert larger than the state of Texas. (In November the concession was assigned to the California Arabian Standard Oil Company. On January 31, 1944, the company name was changed to the Arabian American Oil Company—Aramco.)
The team of geologists was soon joined by others, until the pioneer team had grown to ten men. By early June 1934, the geologists finished the detail work on a geological structure they had named the Dammam Dome and thus completed their first field season in Saudi Arabia. In a preliminary report to the home office in San Francisco, they recommended that drilling be started. The company confirmed the recommendation, and the wheels were set in motion to assign men and equipment to wildcat halfway around the world.
In late September the Bedouin folk, following the astral calendar, began to break up their summer encampments. The season had changed, and the time for nomadic wandering and distant grazing had come. Within a month the oilmen had started their second season of desert exploration, taking up the vast chore where they had left off before the oven heat of summer had forced a recess.
In January the King was officially told of the company's plans to go ahead and drill. The world was deep in the great depression, and it was good news indeed that the oilmen were making progress.
The wildcatters had already started to arrive in the Dammam Dome area where the first well, in drilling lingo, was to be "spudded in." Tents were set up temporarily on a broad terrace near a group of limestone outcroppings. A pier was started down by the shore at al-Khobar, a fishing village. In January 1935, while the geologists were out on the desert reaches continuing their surface explorations, the construction crew was digging a cellar for the first drilling rig.
Most of the pioneer group were experienced in the conditions of wildcatting far away from well-stocked oil field supply centers. They knew how to improvise. Lacking dynamite, they broke up the rock for the derrick cellar by heating the rock with a wood fire and then flooding it with cold water.
By February 19th the cellar was completed, and by mid-April the derrick was up and being rigged. On April 30th the wildcatters spudded in Dammam No. 1, the first oil well in Saudi Arabia.
The hole was first drilled by the cable tool method, a slow process that was at that time being replaced by the modern rotary rig system. Three crews worked around the clock to "make hole" as fast as possible. Arab crews who had to be trained on the job assisted the American drillers, the wildcatters who had been on exploratory rigs in Venezuela, Ecuador and China. The drillers were gifted roamers who liked to discover oil and then move on.
In San Francisco an anxious group of men eagerly awaited progress reports from the pioneer well. Theirs had been the executive decision to risk the money for the Saudi Arabian wildcat. The shadow of the lengthening depression fell ominously across the venture.
From the wellsite in Saudi Arabia a succession of cables was sent to San Francisco. May 7, 1935: drilling in hard limestone at 260 feet. May 14: water at 312 feet; some show of tar at 385; now down to 496 feet.
In July the hole reached 1,433 feet, and on August 25th the daily cable reported slight showings of gas and oil at 1,774 feet. "Not important, but encouraging," the cabled message read.
Five days later the well had reached 1,886 feet with showings of gas and oil at several levels along the way. "Flowing by heads [surges] ... possibly would make 50 bbls. per day," the August 30th cable said.
On September 6th the depth was 1,959 feet. The cable for that day advised San Francisco that the time had come to stop drilling and make a flow test.
The result was nothing to write home about, let alone cable. On September 12th the cable reported the results of a 21-hour test: the well flowed 98 barrels of oil. "Preparing to drill deeper," the cable hopefully added.
Six days later the anxious men in San Francisco were at first overjoyed by a report that at 1,977 feet the well had flowed by heads approximately 6,537 barrels per day. But knowing the vulnerability of international wireless to sunspots, and human fallibility, they sent a cautious cable back to the oilmen in the Persian Gulf: "These figures may need checking...."
Indeed they did. Another cable from Saudi Arabia set the matter straight. The estimated flow was actually about 100 barrels a day. Not good enough to be considered worthy of commercial production.
The year wore on and the hole deepened. 1935 gave way to 1936. On the fourth day of the new year work was stopped at Dammam No. 1, and the construction men started rigging up for a second well—Dammam No. 2. The pioneer well had not been abandoned, but to go deeper a rotary rig had to be brought over from Bahrain Island, which is visible from the Saudi Arabian mainland.
In early February, Dammam No. 2 was spudded in. The original enthusiasm that filled the air in early 1935 had been dampened. Oil had been discovered, but the problem was to find it in commercial volume. By mid-May the second hole (which was now being drilled with the rotary rig) was progressing very well. It was already down to 2,175 feet and had made encouraging showings. Hopes rose again.
Optimism was greatly heightened on June 20th when, during a five-day test, Dammam No. 2 flowed an average of 335 barrels of crude oil a day. A week later production during the test jumped to the equivalent of 3,840 barrels a day. This seemed to be it.
The San Francisco office in anticipation had already decided to drill another wildcat elsewhere in the desert and to expand the drilling program at Dammam. Wells 3, 4, and 5 atop the Dammam Dome were authorized. Before July had ended the company had also decided to drill a deep-test well—Dammam No. 7. It was to probe the so-called "Arab zone" of deep strata. No one then knew the crucial nature of this decision.
Implicit in the stepped-up drilling program were a number of changes in the small world of the Dammam wildcatters. The bunkhouse days were numbered. A boom was in the making; headquarters was "bullish" on the concession. More equipment was coming, and more people would be needed to keep up the pace the company was setting. The rough-rock pier at al-Khobar was widened and pushed further out into the Persian Gulf. Black, oiled roads began to snake out from al-Khobar and the Dammam camp. The Saudi Arabian Government announced a new Bureau of Mines and Public Works.
In August, a month after the decision to drill five more wells at Dammam had been made, the company got clearances from the Saudi Arabian Government for a 70,000-acre reservation on which to build a permanent camp.
Then a string of disappointments clouded the all-out drilling program. The deeper drilling of No. 1 produced no significant results. No. 2, after its exciting test flow in June, dropped from 3,840 barrels a day to 225 late in the year. No. 3 was started in mid-July but never flowed more than 100 barrels a day. No. 4 was a dry hole—it didn't even have a showing of oil. No. 5 was spudded in September 8th but by the end of the year hadn't flowed a barrel of oil. No. 6 lagged behind because of the rush of work on the other wells.
On December 7th the deep-test well—Damman No. 7—was spudded in. As the year turned, the company proceeded with plans for the permanent camp. Despite the poor showings of wells 3, 4, and 5, and the startling drop of flow in 2, an optimistic outlook prevailed. On March 8, 1937, the San Francisco office inquired about the progress on Dammam No. 7, and the cable included this question: "When will married quarters be ready?"
But No. 7 was troublesome. In May it was in bad shape. In July a spurt of good drilling took the well down to 2,440 feet. In early October the hole reached 3,300 feet. Several tests were run. The result: "No oil." Then a few days later the well had its first show of oil.
Again misgivings had begun to grow. San Francisco ordered all work stopped on the shallow wells. Any further work on them would have to be specifically approved.
How would No. 7 turn out? That was the big question during 1937 as month by month the drill bit ground deeper into the earth. But behind this question there was a more profound one that had begun to trouble the executives in San Francisco: should the company pull out of Saudi Arabia altogether? It had already poured millions of dollars down the holes in the desert.
Both questions got a dramatic answer on March 4, 1938. On that day, No. 7 flowed at the rate of 1,585 barrels a day. In three days the flow had risen to a rate of 3,690 barrels a day. San Francisco cautiously included a single word of comment in one cable: "Congratulations."
This time it was no fluke. The test continued, and the rate of flow stayed over 3,000 barrels a day until halted April 20th. Soon thereafter No. 2 and No. 4 were drilled down into the "Arab zone" and both turned out to be good producers in the lower strata. On October 16, 1938, the good news was conveyed by the company to the King: Commercial production had been discovered.
The day of the wildcatters was over. They had done their job and were ready to leave. The first wives to arrive in the Dammam camp had been on the scene for almost a year by the time No. 7 yielded its big flow. The family cottages were growing in number.
By early 1939 the seven wells would become another chapter in the company history. So would the Dammam camp, for it would formally take on the name by which it is now known—Dhahran.
This article appeared on pages 18-21 of the January 1963 print edition of Saudi Aramco World.
See Also: DHAHRAN, SAUDI ARABIA
Check the Public Affairs Digital Image Archive for January 1963 images.
P.S. Until the recent Occidental discovery (southwest of Taft in the foothills), the last million barrel field in California was the Touloumne field just at the foot of the Grapevine, south of Bakersfield in the early 1970s.
Drill baby drill. Oiljob
There is little evidence that shorting had anything to do with the recent fall of this stock. The tide fell and with it the market. It could remain ugly for a week or so still, no reason to sell; it has nothing to do with the underlying fundamental opportunity presented by this stock.
It's a shame all the flippers got to reload at these lower levels again.
When our trading desk lights up the long term buyers will come and hold. It requires revenue. The oil will drive the engineering, and ultimatley provide constant long term cash-flow for future projects.
If we're told this week that the desk sold the July allottment and has already sold its August allottment too, then it's all over. Bye bye day traders. And if we can do that and get approval to sell the Sudanese oil too, then just hang on til we get to the top of the mountain. The flippers will be left to find a new ant hill. Oiljob
There is nothing you can do about the mm's. Their job is to make a market, we can't live with them and we can't live without them, a fact, an undeniable. Like cops, lawyers and politicians.
Revenue is all that really counts, either we achieve success through our various endeavors or we don't. The flippers be damned.
P.S: I love Dolphin's aquatic mammal picture,,, I'm not sure, is that a flipper, i always wondered what one looked like.
P.S.S : If our trading desk staff is unable to move our oil, then its time for some new blood down at the company.
You buy when the blood is in the streets. Oiljob
P.S. That looks like blood to me.
Here's a little shout-out to Mr. Hardin and the crew. We know you're working hard under arduous conditions in the Belizean rainy season, doing your level best to get that first well spud-in.
Let's do it right the first time so we don't have any unneccessary set-backs. Be safe. Oiljob
P.S. Like, be sure the crew wears goggles when they're knocking the nub off the end of the drill line. I was blind for two days once when I forget that little safety tip. :) Do we have a hole opener, a blow out preventer and surface casing on site yet? And who is supplying our drill bits? Where are the first two wells located, can we post a good map? Who is our driller? Hardin or are we hiring a couple of locals (from BNE?) Shooot, I have a thousand questions. If you let us know the address for the Placencia Office, I'll try to start a "beer fund" for your crew party after completing the first well; I think they'll be ready for a good cold beer by the end of August. :) Oiljob
Absolutely, BNE has been a blessing to everyone and every family in its concession area; as we will be eventually to everyone and every family in Big Creek and Monkey River. Have a good day everyone Oiljob
Nice post FMI. I think they are reading our message board in Belize. Oiljob
No Big M we need the specs for the rigs. How does one price a rig without konwing its size and equipment?? You cannot compare apples with oranges. Oiljob
The reason this is still a sub-penny stock is because nobody has banked any money yet. Show me the money!!!
The agreements could translate into dollar stock with the right multiple, but that requires revenue. A 50X multiple on zero earnings is still a sub-penny stock. Oiljob
Be patient: we need to push our oil allotment off the trading desk and we need to build a rig and get paid for it. It all takes time.
Drilling rigs come in all different shapes and sizes. But in June Trinidad bought 4 rigs capable of drilling to 20,000 ft.
"Trinidad Drilling Ltd. (TDG.TO: News ) announced the acquisition of four drilling rigs that would be added to its US drilling operations. The total cost of the rigs is expected to be $44 million, including the initial purchase price and subsequent upgrades.
Following their enhancement, the rigs would be highly automated, 1,500 horsepower, AC triple rigs with a depth capacity of 20,000 feet. The first rig is expected to be operational by the end of the third quarter of 2011 and the remainder would be ready by the end of the year."
That would be $11,000,000.00 apiece for used rigs. So this deal could be in the right ball park. Oiljob
P.S.: We are building the rigs for about $16,000,000.00 per rig. Brand new with the latest technology.
I would imagine if we're lucky that the trading desk profits will drive the production of the initial drilling rigs, at which point the engineering division can stand on its own two feet.
So the oil will drive the engineering. Oiljob
I'm still hoping to see a timetable for our first well drilling program in the next couple of days. Oiljob.
P.S. I need to buy my tickets to Belize. lol
Everybody seems to want some "new" news.
If I wake-up in the morning and the PR I read says we just pushed the first 6,000,000 barrels out the door on the trading desk, then we take off and never look back to these prices again.
Yep, that's the only PR I need to read. Oiljob
Aramco sells over 300,000,000 blls. of oil per month. We only got 6,000,000. If we can prove we can move their oil with our trading desk division, there is plenty of room on the upside for additional allocations of oil from the European middle-man. Oiljob
P.S. Aramco produces 3.6 billion barrels of oil a year and who knows how much oil they sell for third parties.
By institutional investor I presume you mean venture capitalist. Most institutional investors would be prohibited from purchasing any stock at this price. Oiljob
From these pictures it looks like our bulldozer is leading the way to our first drill location. I think I'll look around for a good machete company to buy. Oiljob
I stumbled on this stock researching penny stock rig builders. Had that been their only business I would have bought the stock, I'm still waiting for news on that business. With No. Dakota, Texas and Louisiana reopening all their old fields with new shale fracking techniques, that business alone will put this company on the map. Horizontal is good. Oiljob.
This is what sideways looks like. Only 2 million shares in the last couple of hours.
Is somebody really trying to pay their rent arbitraging a two tenths of a penny spread?
What if the trading desk contract is only the first tranch, or its the magnet for multi-allocations from other producers. Three more contracts like this and the trading desk alone is making a $1B/yr. What is the multiple on this stock? 50.... we just need to show we can push some oil.
Bechtel likes us... that's good eneough for me. The scum sucking sub-penny shorts will scatter as soona as the first bull wades into the pool and sucks up some float. Oiljob
Chit: BNE does not have a pipeline, they transport all their oil out by tanker truck. This is just YouTube stuff. But we do need a refinery; just a little one, not like Motiva. Oiljob
P.S. You seem rather excited about your PGIE purchase as well lol
I hate day traders, pumpers and dumpers. Once they post the contract the fizz will be out of the bottle, then the magic of the market can do its thing in silence.
Learn how to mime or communicte in sign language or use a telephone. But stop with all the frantic posts.
If this little start up can land a big broker deal then that deserves my respect. I'll know by end of day. Otherwise I still hold a long term lotto ticket with a company that at least likes to go big game hunting. Oiljob.
When the rig off-loaded that closed that chapter of the book. We will soon see pr's explaining the up-coming time-line for drilling the first well. That is the next chapter. Patience as the plot thickens. Oiljob
P.S. Just think of all the unwritten domestic chapters, revitalizing our American properties, drilling and retrofitting the wells around our property gives us better insight into how best to manage our own; and Kansas looms large on the horizon.
So while I wait I'll get my passport renewed and check the weather in Belize. Have a good day everyone, and rest easy knowing Treaty Energy is about as straight an arrow as they come in this business.
Just dropping-in with my first 1,000,000 shares. I like your stuff. Oiljob
The Eagle has landed. One tiny step for Belize but one giant leap for Treaty Energy. Good job Treaty. Oiljob.
P.S.: I think it's fair to say this is a portfolio moon-shot, and it appears that Mission Control has everything well in hand.
The last time I checked MCW Shipping sends a ship into Big Creek, Belize, from Mobile, Alabama, every 5 days. Oiljob
P.S.: I can smell news: it smells like hot chocolate chip cookies fresh out of the oven.
Treaty has very strong legs. We must crawl before we walk, amd walk before we run. Stay long and be ready to sprint to the finish line. Oiljob
Looks like BNE is buying in ... lol.... . Oil job
Our drilling superintendent is already in Belize, the last I read. I would imagine he has been obtaining trained crew members from the BNE operation. Our initial drill site has been chosen, and our rig is mobile, you drive it onto the pad and putdown the stantions or stabilizers. If our mud pit is dug and lined then we,re close to spud ding in. The rig should be in country no later than Wednesday. I am sure we have already spoken with local leaders and landowners. We need a drill (a hole opener) some pipe, some surface casing, a mud engineer, a cement pumping company, and we are ready to go. By the third well this will all be done in less than a week. I say drive the rig out there and spud in. It will all be done faster than you think. These stock prices will never be available again.
The weather is our biggest problem right now. Worst case scenario, the Kansas deal hits and we drill day and night for every other concessionaire in Belize. If wells are not producing by October, there could be consequences for some of the concession holders.
Our company is the best bet in Belize right now ... Everybody will be watching us closely, we cannot afford mistakes. Oil job
I hiked up to the top of the mountain this morning. Good news .... I could clearly see Dimeland. It s just over the next rise. Oil job
Game On. Our equipment will arrive in Big Creek any day now. Oiljob
FMI: The photos are looking sweet, thanks. Nice opening too. Oiljob
More people chasing fewer shares normally increases the pps. If you're a long term capital gains holder (i.e. in excess of one year) then that is good, stabilizing the price of the stock and the overall value of your portfolio.
That increases your borrowing power if you also have a margin account.
If someone has a TECO LEAP for a million shares I'd like to know the price for the December 2012 $.05 Call.
Oiljob.
I'm of the opinion that this company is approaching the point where some big beast is going to wallow-in and suck up all the float.
Indeed, I'd be surprised if Bruce Gwyn and his Level III Trading Partners are not prepared to do just that. Now.
Oiljob
P.S. : Bye Bye Day Traders
P.S.S.: fmi, I love the new pictures ... can you get some more?