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You got it nosey -
I remember back when I first read the financing PR and I went and looked up Royal the filling station company on the web. It never made sense because nowhere could a connection between over 200 wells in the Sacremento Valley area / Grimes be found. Aspen may have 200 or more. Obviously, Royale Energy has a huge leasehold in Grimes, but the PR said Royal Petroleum, and the author of the article on the Sacremento Valley activity surely would have mentioned it if Royal Petroleum were a player in the area with upwards to 200 wells available for reworking. It never made sense.
Only later did I sniff around until I found the liquidation or Royale Petroleum and realized that its assets had been absorbed into Royale Energy but the shell of Royale Petroleum appears to have been retained "for administrative convenience". All of the sudden, it made sense that the financing was Royale not Royal & maybe a spelling error explained a lot. I may be wrong but Royale Energy is Grimes's major player and Royal Petroleum is nowhere to be mentioned as a leaseholder, much less an operator out there in Grimes.
I could be wrong, but we are in hurt in a huge way because of the deliberate lack of transparency. All that leaves us with is a jigsaw puzzle. We are left to put the pieces together into an overall picture that makes sense. I'm sure I'm wrong in a bunch of details but I think I'm heading down the right track.
Thanx etc...
Imperial Whazoo
Tyler -
I need you to explain further:
Question: You say "and a new company has been formed"; what do you mean? What is the new company? In fact, what is its opposite, the old company?
Question: You say "also OPI show lease hold in Canada under BIGN and operator Tyche"; who or what is OPI?
Thanx
Imperial Whazoo
Tyler, you asked a question and heres my answer
Sorry its so long, but please read it. I think you'll find it worth it. Oh, & I'M GUNG HO BABY!!!!
I've been puzzling over the same question as you have for many months and I'm on to an explanation, I think. Now, I'm really not sure but here my thinking.... but, first, I think layimg out a fey key links is a good plan.
http://www.royl.com/ Royale Energy's web site
http://www.royl.com/news_info/pr/pr040623.pdf --- Royale Energy aquires all the outstanding shares of Royale Petroleum
http://www.royalpetroleum.com/ --- The other Royal Petrolem web site
http://www.bignltd.com/pressreleases.html# --- Biogenerics signs on to do Grimes wells (articles from Biogeneric Press Releas page - August 23 2005, Oct 11 2005, Oct 14 2005, Oct 18 2005, & Nov 30, 2005)
http://www.aspenexploration.com/HarvestingTheSacramento.pdf --- Article that does an excellent job explaining the Royale Energy story in Grimes
http://www.bignltd.com/pressreleases.html# --- This is KEY!! It is the financing agreement PR between Royal Petroleum & BIGN - Oct 18 2005
http://www.bignltd.com/pressreleases.html# --- The last time we hear from Paul Smith, the former Exec VP
http://www.bignltd.com/pressreleases.html# --- The last time we hear from Gary Kelly, the former CEO - May 3 2006
http://www.bignltd.com/pressreleases.html# --- Lancaster, the new CEO, is quoted for the first time in a PR - May 8 2006.
http://www.tycheenergy.com/press.php?id=33 --- Tyche PRs regarding the 8 wells they purchased and they first use the phrase "land bank"
In a nutshell, I think Paul Smith & Gary Kelly were fired because the deal they cut with Royale Petroleum was not what their bosses, the venture capitalists, wanted. I can not say why this is so, but heres the picture, as I see it.
Paul & Gary cut a sweet deal with Royale Energy to rework a plugged and abandoned well for Royale that had stopped producing way back in 1989. Hydroslotting was new technology & it was highly speculative, but what did Royale have to loose? So, they tell BIGN that they can try it on the Grimes properties and the deal they cut is pretty sweet at first glance. BIGN has to fund the first rework out of its pocket but Royale agrees to give them really nice terms: 80% of the WI until costs are recovered and then, an ongoing 40% WI. Now understand that the typical split on a well is 7/8 to 1/8 where the 7/8 interest (.875) is the WI and the 1/8 (.125) is the royalty owners. So, Royale retains a majority after payout of expenses (BIGN w/40% & ROYL w/ 47.5%). ROYL will be operator.
Well, hydroslotting works like gangbusters and the next thing you know, they agree to do a total of 5 of these types of wells. Now bear in mind that nowhere in the PRs does it actually say that the deals are with Royale, but the article (http://www.aspenexploration.com/HarvestingTheSacramento.pdf ) tells a convincing story about the size of Royale's presence in Grimes and the subsequent financing deal at attractive terms (8.5% with no lending limit) is with Royale. So, I'm deducing that the deals in Grimes are with Royale.
Anyway, the next thing you know, there is a real nice financing deal that gets explained in a press release naming Royale, followed by a super optimistic 120 well forcast for a huge hydroslotting project.
Well, its as though you dropped a penny down a well and it never hit bottom. Instead of zoom zoom, its as quiet as the whistle on a funeral train.
Next, there is the spin off of the Tyche share that just shows up out of nowhere. And, the Grimes project languishes and the next thing you know, we stop hearing Paul Smith being quoted in PRs and then Gary Kelly gets replace as CEO by Lancaster and we all know about the complete change in emphasis from Grimes to East Taxas that followed. Huge mysteries, all this, if you ask me. One thing that struck me at the time was the fact that I knew from first hand experience in the East Texas oil patch that these properties Lancaster was aiming at were not even candidates for Hydroslotting. Worry sets in. We eventually get our shares, and only close scrutiny reveals that the ownership interest in Tyche has diminished without explanation from 50% to 37.5% and, after the spin off, to 27.5%.
Then, this week, the new phrase describing Tyche as a land bank shows up and it finally dawns on me what has been going on.
Smith & Kelly cut a deal that ran counter to the plan. And it wasn't even a good deal. The financing deal tied up assets as security for a bottomless purse to finance the huge visionary Grimes project throughout 2006 & 2007. But here are some real odd details. Consider for a minute that the 80%/40% structure is retained on all the wells to be done. So, why the 8.5% financing? If each well uses income from it at an 80% rate until expenses are handled, why did BIGN agree to tie up existing production (presumably elsewhere in Canada & the US) to obtain 8.5% financing? If each well paid for itself with its own cash flow, why tie up existing production elswhere? All I can figure out is that Royale was really cunning and they outsmarted Smith & Kelly. We see some of the fingerprints of this today in that it appears that Lancaster has to run every decision back to Toronto. The venture capitalists got burned once and so now they make all the decisions. Anyway, ROYL covered daily drilling expenses at an interest rate of 8.5% using a loan of their own 40% income stream and, at the same time, they obtained the existing production of BIGN as security. Effectively, didn't they thus negotiate an additional 8.5% interest return on the 40% they already owned and were loaning to BIGN until expenses got covered? So, as I see it, they loaned their own 40% until expenses got paid for 8.5% and also ended up owning BIGNs existing income stream as security. When looked at this way, it doesn't surprise me that Smth & Kelly were shown the door.
Now, one thing I've not been able to define is which Royal BIGN is working with here. There press release says Royal Petroleum and that company is not an oil producing company. It may have wells but to judge by its page it is in the filling station and oil material (gas, fuel, refining, grease... that kind of thing) business. When I read the article describing Royale Energy in Grimes, I searched and discovered that Royale Petroleum had been an affiliated subsidiary company of Royale Energy until it was absorbed. Now, on first glance, it seems that Royale Petroleum was liquidated. Actually, its assets (leases etcetera) were liquidated into Royale Energy. The article clearly states the assets are gone but it adds "The Royale Energy stock that Royale Petroleum now owns will not be exchanged in the acquisition but will remain with Royale Petroleum for administrative convenience." Now, if Royale Petroleum is completely gone after 6/24/04, how could it loan money to BIGN in 2005? Well, the article states that the Royale Energy stock that was owned by Royalr Petroleum "will remain with Royale Petroleum for administrative convenience". In effect, it appears that, Royale Petroleum remains as a shell that has no assets. So, it appears to me that the laon is doen thru the shell. The reason I'm wasting time on this detail is that the BIGN PR on the finance deal says the loan is thru Royal Petroleum, not Royale Energy, the company that has the kind of presence in Grimes to make a deal with BIGN to do 120 wells. If the filling station company were the financier, there would have to be a connection between Royal Petroleum (the filling station company) and Royale Energy. Once I figured out that Royale Petroleum was a shell within Royale Energy, I guessed that there was a typo in the Oct 18 2005 PR. It should have read Royale rather than Royal.
Anyway, right after the 120 well plan was released, the Tyche spin off shows up out of nowhere. I think Smith & Kelly had aleready been told that they were history but they were kept on until replacements could be found. The venture capitalists did not intend to tie up their existing production as security. They had in mind something else: rather than having Royale Petroleum or any other entity be their bank, they intended to become their own bank: a land bank. Tyche was the vehicle thru which this was to be done. And thats exactly what we learned from theis week's Tyche PR.
The task Lancaster was given was twofold. First, he had to patch togeher from all kinds of disperate entities, a cohesive whole. WW is part of this. Its completions were not entangled by the financing agreement that entagled BIGN if they completed the wells in Grimes. Neither was Tyche. The second task was to delay the deals in Grimes without scuttling them. So, he "mismanaged" the project. He had delays due to weather. Then, bad luck but good luck as regards effective delay tactics: he has kidney cancer. Bad pipe gets delivered at Grimes. Schlumberge fails to get equipment on time. Then the rigs break down. Again, Schlumberge's fault. During this time, he is constructing his land bank and doing deals that are not entangled. Hydroslotter, fortunately for BIGN, is 50% owned by BIGN, so I'm sure they are furious that their super cool technology was back-burnered for a year when it had looked like they were on the brink of becoming famous. But, BIGN owned them and there was nothing they could do about it.
So, now the stage is set.. Tyche reveals that it is the land bank entity. It show this, too, by mysteriously having its 50% show up as 37.5%. WW gets 30 properties to rework & there is a scent in the air that smells like a deal that is all but done to get the 3 workover rigs. And the good thing is that these rigs don't have to be transported out to California. They are in East Texas, a short drive to Oklahoma where the 30 wells are.
If you ask me, this announcement that there is a schedule for doing these 30 wells is solid. Unlike the deal in California, it is realistic and it is local to the area of the rigs. I am 100% sure this is all a done deal and that BIGN, WWNG, & Tyche are all excellent investments. I think it could be said that I'm GUNG HO, BABY!!!!
I know that is all kind of hairbrained. I told you when I responded to you this morning that I had a planned post on this subject. Fact is, as you can tell, its still kinda loosy goosy. However, I swear that I'm on the right track. I may not have all the ducks in the precise right order, but I think I'm pretty darn close.
Anyway, now youze guyze can proceed to rip me limb from limb.
Imperial Whazoo
You got it, Billiam -
Never never never never buy at market in pinkies & bbs. Period. I always do limits. When I sell a stock that is above my profit target, if the stock is listed on the Amex or the NYSE and I'm trying to move it fast, I may suffer the hit that always seems to accompany selling at market but I will only do this when I'm high enough in the profit to take the small hit that dumping at market always entails.
You are speaking wisdom, my friend.
Imperial Whazoo
Tyler -
I was planning to post on that specific question because I think I have it figured out. And by the way, you are smack dab in the middle of the target, IMHO, in thinking along these lines. It sounds ridiculous to say it but it is quite central to comprehending the whole picture, bringing it into focus as were.
It will take about an hour for me to carefully construct a description and I don't have an hour right now. Please be patient. I think you will find what I think I have unearthed pretty darn telling.
Imperial Whazoo
Hey lowman -
OT: Since you moderate the NESS board, check it out. I saw animportant piece of info and posted it there. It sould interest you, I think.
Imoerial Whazoo
Boy do I ever second the profanity part, Joe.
Now, this is not a prayer meeting, so it seems to me that a stupid idea deserves to be called stupid.... and, what are we trying to be, anyway, the mind police?
If a poster thinks somebody is acting like an idiot, it is poor judgement to insist that an opinion that someone is acting like an idiot isn't a valid opinion. If eat starts acting like an idiot in futr's opinion, I see nothing wrong with it being said. futr is entitled to that. Now, you can't use the n word or insult his character by comaping him to someone like arch. You need to avoid vulgarity and cussing, IMHO, but I draw the line at empowering anything even vaguely resembling the mind police.
We're all grownups, so I think we can avoid vulgarity, racism, and the like, but it is simply a fact that a person can act like an idiot and there is nothing wrong with someone else saying so, IMHO.
Imperial Whazoo
Hey everybody -
Check this out! Check out NESS as a trade due to their proximity to this news, too.
http://www.ynetnews.com/articles/0,7340,L-3311425,00.html
Imperial Whazoo
Hello anyone and everyone out there on the NESS board -
I'm not a newbie to anything but this particular board, but I saw a news bite that is at the following link, which I think is enormously interesting and of potentially explosive importance to NESS. By the way, I've held NESS several times in the past. Of late, it has not been a sound chart, but this news may perk things up a bit, I would think:
http://www.ynetnews.com/articles/0,7340,L-3311425,00.html
Imperial Whazoo
Thats exactly what I think. this is a textbook example of accumulation playing out right before our eyes.
And, for another clue, check out all the tails on these candlesticks. They are a thick hedge of rejections of each day's lows.
Imperial Whazoo
Yeah, he'd probably burn the buns while negotiating with the spatula.
Imperial Whazoo
Whats a NobO?
I knew somebody would bring up the rigs. Your probably right.
So, I guess the only answer is to give them everything they want and get on down the road.
I'm just saying that, so long as the piper calls the tune, you dance to the music he chooses.
So long as the guy on the other side of the table thinks he's got ya, he probably does. If he doesn't, then show him the door. If he does, quit resisting his dominant position and concede. Be a pragmatist.
If Lancaster walked away from the deal today, it would probably hurt the stock price. Fact is, thats probably what the folks who sold today decided. Lets be fair about it, though: even with several somewhat large blocks being dumped today, every seller is balanced by someone else who thinks its a bargain.... and even with the disappointing activity today, we still aren't being swamped with sellers. There is no dash for the exits going on here, folks.
As far as I'm concerned, the asset base quadrupled yesterday. Thats my point of view.
Imperial Whazoo
You know, I've been thinking about the negotiating that is probably going on that BIGN apparently thinks is so important that they are willing to let it rein in their entire operation.
Now, supposing they are a land bank and the sellers know this and are refusing to budge. BIGN is busy trying to cover up and hide even their good news.
So, tell me? Who is in control of the negotiations? BIGN who permits even their good news be overshadowed or the sellers who keep sticking to their guns wanting the land bank to grant them a better deal as regards the value of the interest they trade for the East Texas properties? I tell you: the sellers are controlling the whole playing field. BIGN needs to take the point of view an old trader once told me: there will always be another bus coming.
If these East Texas LOI guys are convinced they can make you dance to their tune, you need to decide that you are either going to give them what they want or show them the door. Quit dancing with them. Dance with the one that brung ya, as they say in these parts.
If the list of properties in my earlier post is even close to accurate, BIGN doubled or even quadrupled its asset base with the two PRs yesterday. So, who needs your whole operation reined in just to hide uasable land bank assets from a seller? Do the deals already lined up. Hydroslot everything in your inventory that can be slotted. Rework the rest. Quit being beguiled by the "beauty" of the new gal. She probably puts her makeup on with a putty knife anyway.
Imperial Whazoo
Thanx man. It helps.
BIGN added 50% interest in 2 prodicing wells via their ownership of WW and 27.5% in 8 thru Tyche, their land bank entity.
BIGN has tested .014 twice today, rejecting it both times. It currently sits at .015, 291K shares having changed hands at that price in the last few minutes.
I watched WWNG test .04 last week and hesitated. I already have a nice position and I certainly would have benefitted from the price activity so far this week but I hesitated. And he who hesitates is lost. Woulda coulda shoulda.
I have no intention of making the same mistake with BIGN.
Thanx again
Imperial Whazoo
No, I don't sound like arch. Thats like comparing Spurgeon to Hitler simply because they made impassioned speeches. Content matters and my posts that aren't responses to people insulting me actually contain meaningful content, which by the way, I am under no compunction to voluntarilly share with anybody. I do it, taking a great deal of time to do so because it is entirely consistent with how a healthy board should function to disseminate knowledge to the benefit of everybody. I rant because I refuse to have idiotic vomitous spew comparing me to a truly hateful person succeed. I'm working hard to make money off this stock. I need to know things others know and there is no better way to sift the wheat from the chaff than to lay my ideas out there and see who spits in my face and who comes back with helpfulness. When someone spits on me for having worked to help others, I doubt that this fact is missed on others. I'm going to do exactly what Teddy Roosevelt did: walk softly but carry a big stick. If the bullies on this board are so stupid that they think they go unseen when they act as they have, then get on down the road, boys. I, for one, do not mind someone being so stupid as to show me they true hand.
Also, let me just point out that, based on a comparison of his vocabulary and mine, I dare say I'm a tad better educated than arch.
Finally, there's nothing wrong with a rant. Its better than talking to yourself in the shaving mirror, glancing surreptitiously about to be sure your mumblings aren't overheard by you wife.
LOL
Imperial Whazoo
If I thought your style was the best, I'd use it. I don't.
And let me just say that I have seldom been accused of being subtle. I am trying to wake folks up to get them to hammer the email portals at BIGN, Tyche, & WWNG with polite but repeated requests for transparency. Only a damn fool would run a company like this. We have headlines screaming everyday about the damage obfuscation, secrecy, and obtuseness have on otherwise sound companies. Arch damaged every shareholder by threatening Boyd & insulting the folks in Tyler. Now we all suffer because access has been reduced. I am 50 years old. I have kids in school and mountains of bills. I am extremely professional in my day trading, from which I derive my income. I will not be told by you or anyone else to sit down and shut up on something like this.
These venture capitalists hold the high hand. They can pretty much run things to suit themselves. One little shareholder such as myself will be swatted like a mosquito if he becomes a pest, even if he employs polite and respectful tactics in attempting to get his needs addressed. I simply think it is 100% our business to protect our interests as a collective bunch of polite individuals. Wall Street is a brutal place and the insiders hold all the advantages.
When I end my posts with a drum beat reminder that BIGN is anything but transparent, I am doing the only logical thing anybody in our position can do: trying to wake people up from sitting around waiting for Lancaster and his venture capitalists masters to grace us with favors (like we are slaved honored to come out of the cotton field for a day and come up to the big house). Like that mosquito, they can swat me and they can swat you but they can't swat us all if we act in our own interest and politely hammer them in pursuit of greater transparence.
I'm not bashing when I do that. I'm thinking and acting. I'm using my head for something other than a hat rack and I expect others to do likewise.
LOL etcetera
Imperial Whazoo
fratboy2 -
You are the quentessential cunning basher. I'm not arch you idiot.
Every time anybody has the honesty to speak truthfully and to actually do some real DD, jackasses like you get in their face.
The info I work hard to lay out is a blessing to you. There is not one single fact I took my valuable time to kindly explain that could ever be construed as the kind of comment that Jew hater arch spewd out. Arch cursed everybody and spat like a fool with his every sentance. You are one of the jackass idiots that have poisoned this board.
I'm not arch. How dare both you and mydurango insult me.
Good, well written post, treepart -
I think one little phrase from the Tyche PR yesterday is the key: land bank.
Land Bank:
What you do is you acquire income producing interests (WI, RI, ORI.... that kind of thing). BIGN/Tyche/WWNG are right on track as regards this. But, there is not a commitment of income stream per se. The way it seems to be being (present pluperfect??) is they deed over a portion of the actual interest to the seller.
Heres my evidence: Check BIGNs press releases to confirm my evidence (http://www.bignltd.com/pressreleases.html). I did a summary list that you can work from (post #17056).
On 11/01/04, BIGN buys 50% of "certain assets" of the
company that eventually changed its name to Tyche. Then, 13 months later, we who owned BIGN wake up in the morning only to get the surprise good news that we now own stock in Tyche. The press release for this was dated 12/13/05 and it contained something interesting that I missed at the time. The ownership of Tyche that BIGN originally bought had declined in the 13 months (without information releases explaining the details, by the way) from 50% originally to 37.5% at the time they spun out 10% to us (reducing BIGNs ownership to 27.5%, by the way).
Well here's some of what what they did as a land bank during those 13 months: they reduced their ownership while increasing their portfolio of aquired assets, to wit:
2005.01.14 - "Biogenerics forms joint venture" (Hydroslotter)
2005.02.15 - "Reports on completion of well site Preparation" (Mosa 6-13-III gas well)
2005.07.26 - Grimes begins
2005.09.19 - "Biogenerics Completes Acquisition of Rubicon Petroleum" (1.95% gross overriding royalty interest in the Talisman Romney horizontal oil well)
And so on, (to see the complete list, check post #17056)
Heres the key piece of evidence, though: Starting with mentions of approximately 4000 acres of undeveloped leased land in the 2005.03.04 PR ("Commencement of petroleum and natural of drilling operations"), they progressively grow their undeveloped leasehold until, in their PR release dated 2005.12.01 (entitled "Biogenerics'JV Partner Tyche Energy Adds State-of-the-Art 'N2Vision' Seismic Data Technology to Ontario Oil Field Project"), they proudly boast that they hold "19,000 plus acres of exploration lands in Ontario and Northeast, BC. to which Tyche currently holds varying working interests."
Now keep in mind that they bought 50% of Tyche in 11/04 and 13 months later they report that they now hold 190000 acres (they started in the 4000 acre range) and they now hold only 37.5% of the original 50%.
This is the business plan of these venture capitalists. this is the rubber meets the road working definition of "Land Bank".
My point is that, until I took the time to break down their PRs from their own web site, it was my impression that cash and dilution and committed income streams from Grimes were major elements of their business plan. They are elements but not nearly as high up on the list as being a land bank. These guys grow theses three companies using Working Interest ownership that they can reduce and commit to other parties as an future revenue, which they cement into a solid promis using N-CO2/hydroslotting/3-D neural network seismic as the glue.
I think, in the present price environment for hydrocarbons, such a business plan is a good one. I think BIGN will succeed. I originally keyed in on BIGN because of Hydroslotting. Coming as I do from an oil & gas background, I almost jumped out of my skin when I first read about hydroslotting. Now I've added a certain fascination with this land bank idea.
Hope this helps and doesn't offend.
That having been said, I think they are all but criminally negligent for deliberately putting out pathetically worded PRs, IMHO. I think they are, to put it mildly, absolute idiots for claiming, on the one hand, that they want to become a name of renown in very short order within the oil & gas industry but they fail to connect with the collosal failures that are painetd all over our daily headlines that describe the enormous cost that result when companies delude themselves into favoring obfuscation, deception, & secrecy above transparency (Hewlett-Packard.... Enron.... need other examples??). Doing deal after deal is a sham excuse for deceiving shareholders, who can generally be counted on to be inclined to be tolerant and godd natured. Well heres where I've come to as regards BIGN: Fool me once... shame on you. Fool me twice.... shame on me.
Imperial Whazoo
Exactly my point futrcash and well said.
Fact is, we all own a company with huge potentail and yesterday they doubled, tripled,... perhaps even quadrupled the number of real Worj=king Interest owned producing, cash flow generating properties. Facts are that this is not some minor event. 8 actual well via one partnership (27.5% BIGN ownership). 2 more via another (50% BIGN ownership) 30 additional wells to be reworked. 2 a month as a plan. Come on, now, lets get real. This is OUR VALUE that is the subject matter of this poor clarity issue. Its our stock that should jump up on such news but BIGN so pathetically manages the release of this apparently huge set of unexpected events that the price actually declines?!?! Come on now, doesn't anybody but me think this is outrageous? Doesn't anybody but me remember that 2 wells a month is the exact promis made at approximately this same time of year last year?
Come on now, gang. Fool me once. Shame on you. Fool me again with the exact same set of words & behaviors.... shame on me.
I'm thru ranting. No more (or so I intend). But I just can't seem to wrap my mind around this attitute that isn't outraged. When are all the owners of stock going to get up in arm, flood the email portals with essentially the same demand:(politely made) Enough already BIGN!! give us some working factoids and do it now. Now would be a good time. Not tomorrow. Not Manana. NOW, because tomorrow never comes.
IMHO, of course, but I think I'm right.
Imperial Whazoo
I'm off to a seminar by some guy who wants everybody to buy his momentum tracking software. NOT!!....
But as regards BIGN, I have to agree with you futrcash: it is absolutely necessary to establish value based on numbers like mcf/month, months to payout of drilling expenses, bbl/month, and so on.
I remain adamant that management is completely wrong to place so little content in their information releases. These guys claim they are in pursuit of becoming a known entity in the oil & gas arena. If they continue as they have in the past, they are like a basketball player who claims he wants to become as famous as Larry Bird, its just that he doesn't think anybody has any need to actually see him play. I mean come on now... being conservative with info as a policy is not the same thing as systematically issuing press releases that are both confusing and devoid of any real content. Thats not a conservative policy. Thats deceptive. Calling that conservative gives genuinely well managed PR policies that are indeed conservative a bad name.
You are right about value ultimatly devolving to a fundalmental connection between real numbers and investor perception. This will not ever be accomplished so long as BIGN, Tyche, & WWNG generate the types of information releases they did today.
I have no problem with infrequent press releases. It is not unreasionable to expect the few PRs that do come out to actually say something useful that contribute to the overall value of the company, especially when the announcements involve good aquisitions such as happened today.
Imperial Whazoo
How dare you compare me to Arch.
It doesn't take even the brainpower of a gnat to discern the differences. And, I might add, my complaints are not as you dishonestly represent them to be.
Only the completly illeterate could read my posts regarding the content of the pathetically done PRs and somehow think (an inapplicapble term in your case, I'm afraid) that I was complaining as you describe it.
I'll go over it slowly for your benefit: If a company releases a PR, they ought to take care to have meaningful content. Slow enough for you to comprehend?
Since BIGN, Tyche, & WWNG chose, of their own volition, to relasse PRs, only the braindead could compare them to a company such as you describe that is understandably holding off on releasing info until a deal is finally done.
If you or anyone else ever insults me again by comparing me in any way to that Jew hating, foul mouthed man named arch (man is a misnomer), suffice it to say that you should be comforted that you are anonymous. You may as well be spitting on me, and urinating on me to boot. How dare you.
Hey futrcash (and everybody else too) -
I think EVERYBODY should begin to send BIGN, Tyche, & WWNG emails regarding their pathetic PR releases. I encourage everyone to be polite, being absolutely sure to fall all over yourselves thanking them for finally releasing some good news but also being firm and 100% unwavering in a flat out demand that future PRs begin being professional in both content and in presentation. I mean, lets just swamp them with a drumbeat that has a single, uniform rhythm: Better PRs! More PRs! Informative PRs! Now would be a good time to release them... Better! More! NOW!!!! That kind of thing.
I've received private message encouraging me to contact BIGN regarding these pathetic PRs.
I for one intend to email Tyche, WWNG, & BIGN regarding their patetic & childishly imprecise PR wording.
I intend to point out that it is inconvincing for them to claim, on the one hand, that their goal out of all these aquisitions is to become a known name in the mid-size oil & gas market and, on the other hand, for them to release such poorly done information releases. I hope a whole lot of folks join with me in doing this. After all, if we look at the THUD that WWNG has done after this PR release today, it follows that, after all this waiting and all this gut wrenching price deterioration, we could realisticly experience a similar THUD when BIGN finally PRs regarding Grimes & East Texas. It seems abundantly clear to me that it is in our self interest to ramp up the pressure the management of these three related entities begins to feel to generate value commensurate with their stated desire to be a known name in the mid-size oil & gas industry.
So, its in our interest to pressure these guys. If they are left to their own devices, you can be damn sure that the way they've handled today's PRs will be the way they handle those that we've all been looking for, and if they mishandle them this way the... well, I predict that BIGN price will experience a resounding THUD similar in every way to the one we've seen in WWNG today.
Imperial Whazoo
I think a 5th grader could word a press release better than these guys! I mean, really, just look at the pathetic thud the news from WWNG has had.Wow, guys, try to to swamp my boat with a massive trading volume of all of 122K shares and a price frozen at .06, precisely the level it has tended to recently settle at prior to all this good news.
Heres a conclusion I think we can deduce: the PRs on Grimes that jetted up the price of BIGN stock were more than mere mentions made of genearlly favorable aquisitions of some property. They contained specifics that ordinary people could extrapolate into meaniful future valuations. BBLS & MCF & reserves & years of expected production & months expected for recovery of drilling expenses.... that kind of thing.
So, BIGN/Tyche/WWNG: tell us the monthly income stream derived from these favorable aquisitions. Put some numbers regarding interest owned in there. BBLs per day or MCF per day.... facts, baby, facts. Without concrete numbers, BIGN could announce that they had bougtht heaven itself and investors wouldn't even yawn loudly!
Imperial Whazoo
no Tyler, I think you will see what happened by reading my earlier post # 17056. I created a lengthy table associating each and every press release with an asset/event. The original buy of 50% mysteriously deteriorated to 37.5% in 12/05, when the announcement of the 10% spin off was made (bringing it down to 27.5%). Thats haw the PRs line up, anyway, but giving the thoroughly shoddy wording and gaps in info typical of BIGN/Tyche/WW PRs, the best I can surmisse is that. But, go back and actually read the articles I've associated with each asset aquisition: if the facts are as the reference describe, BIGN retained only a 27.5% interest in their original 50% purchese of Tyche.
Imperial Whazoo
Hey pennimon -
I think I can state with accuracy the way this program of expansion is being conducted and it does not entail dilution via shares.
Heres what they are doing (the venture capitalists behind BIGN, Tyche, & WW, that is)
They are setting themslves up as a land bank. In fact, they are a land bank. Check this fact out. In 11/04, BIGN originally bought 50% ownership of a company that eventually got renamed Tyche. 13 months later, in 12/05, they announced that they were spinning off 10% of the 37.5% ownership of the company called Tyche to shareholders of record. Key in on the ownership difference: they bought 50% and they reported 13 months later that they held 37.5% ownwership. Go back to my list of asset (post # 17056) and review the increased positions they progressively built in both production and in undeveloped acerage.
This is the MO of these guys, pennimon: they use their ownership of producing assets to buy more by using the future income stream as "money" to do each deal, thus incurring a minimal amount of dilution. In fact, this is exactly the strategy gold mining companies typically employ when they commit to futures on their current gold production, known in that industry as "selling forward contracts".
These guys are diluting the aquired property ownership to leverage purchasing an ever increasing portfolio, thereby pursuing a dream of quickly becoming a "player" in the oil industry.
Also, check out the Tyche press release from today. The phrase "land bank" is the exact wording Tyche's president used to explain the aquisition of the 8 properties.
Imperial Whazoo
cuban -
Boy would I ever favor that!! Fire them all!!
Imperial Whazoo
Again, thanx spiras -
As regards this BIGN press release, at least this one tells us there are 2 producng wells. And, the ownership in these wells is 50% with WW. With Tyche, it appears to be 27.5% and 50% with WW.
Anyway, again, the addition of these new wells is excellent news and yet the price of BIGN is at .015 on increased volume.
Anyone selling has a buyer in me, baby!
Imperial Whazoo
Great news Spiras & great thanx for bringing this to everybody's attention.
I have "voluntarily" assumed the roll of "keeper of the assets owned list" based on Press Releases (see my post # 17056), so I'll be updating that to reflect the 27.5% ownership BIGN has in Tyche.
I'll get to that after a day or two because, as of this moment, this particular press release typically confuses as much as it enlightens.
Here are a few of the questions that come to my mind immediately upon reading this horribly worded press release:
1.) How much interest did they actually buy? Given that producing wells typically involve ownership by both royalty owners and operators, it seems absurd to assume that what Tyche is claiming to have done is to have bought both the existing royalty income stream and the existing working interests. (The reason buying out all the royalty owners is unlikely is that there are usually lots of royalty owners and these are often times owned by trusts that involve complex internal ownerships that are hard to quickly negotiate with, so it is simply never the case that buying a well translates to buying both the royalties & the working interests). Thus, in reporting that they have "acquired 8 oil wells", the only logical conclusion that makes sense is that they bought the controlling working interest. This needs to be clarified.
2.) Are these wells unitized? If not, are they in the same field or are they simply spread out in several locations in Oklahoma?
3.) Are they slottable? Are there any plugged & abandoned properties included in this aquisition?
3.) If they bought controlling Working Interests, will Tyche be the operator or will another oil company be the operator? What is the monthly income stream attributable to Tyche (& thus, at a 27.5% rate to BIGN?)
4.) Did the acquisition of these wells include any undeveloped mineral interests?
One interesting detail that needs to be mentioned is that any acquisition by Tyche is an acquisition by BIGN because BIGN owns 27.5% of Tyche (and those of us with restricted shares collectively own 10% of Tyche). So, this acquisition adds SUBSTANTILLY to the asset base of BIGN. Put simply, based on my decyphering (albeit imprecise admittedly) of the PRs on BIGNs web site (again, see my post #17056), the fact is that, as of this press release, BIGN "APPEARS" to today own at a minimum twice as many producing properties as they had when I posted the asset list. Plainly put, this is awesome news. Quite apart from the promised LOI and/or news from Grimes, we have a stronger company now than we did before. Period.
It is absurd that every entity associated with BIGN (Tyche obviously included) seems incapable of generating a press release that is worded well. At the very minimum, this current Tyche news should enthuse BIGN owners, but the fact is that, having read it, it remains unclear whether the 8 properties are actually even producing wells. Based on the wording, everyone is entitled to presume these are income producing properties, but it is not clear from the press release if this is the case.
Oh, and let me point out a clue that tells you a huge amount about the unstated business plan of the venture capitalists who actually own both Tyche & BIGN. These are Leo Lodder's (president of Tyche) exact words: "...the potential it offers to expand our land bank...". The fact is that we have now been told, in no uncertain terms, that Tyche (and presumably BIGN) is a land bank. In essence, what this means is that their business plan is to oblain properties and to maintain only such WI ownership of them as is minimally necessary for them to use the "excess" as a loan base for the obtaining of other assets which, in turn, can also serve as leveraged assets in their "land bank". Pretty key little piece of info, if you ask me.
Anyway, spiras, thanx Thanx THANX!!! Really excellent, man. Thanx!
Imperial Whazoo
Looks like the only spook on the horizon is named Tekoah19
Thanx patience -
I'm down to my last posts today and anyway, I'm about out of zip for the day so this will be my last on the board for the day.
Anyway, you have it right on target. The poorly managed PR history is responsible for the demise of the stock that we presently suffer under. They have a lot of potential in BIGN, to judge by the list I assembeled from their PRs. If they hired a professional outfit to post their data regularly and with friendliness & clarity, they would be over .03 right now, IMHO.
By the way, for a look at a truly user friendly release of info, check out Zion oil (http://www.zionoil.com/). I've been following them for a long time and one really cool thing that they do that is unique (I've never seen it on even huge company pages) is that they post the daily well log drilling activity log for the wells they are drilling. I mean, think about it if we had this kind of info coming out of BIGN as regards Grimes (and, for that matter, the Tubbs thing in Ward County Texas & the old Rubicon stuff in Ontario etcetera).
So, thanx for the reply. Before I go, here's what I'm charting as my plan, even if the info that eventually comes out from Lancaster & the Tyler Boys is bad: If the news is bad, I'll bail to preserve capital and buy again when they bottom because, based on my listing of the activities they have going on and all the irons they have in the fire, this is definately not a looser stock.
I'll tell you one thing though: there is far too much similarity between the secrecy/paranoia at Hewlett-Packard's BOD and with what we see (or, actually, don't see) coming out of the BIGN BOD. I mean really, now.... what is wrong with these guys? Do they really think that info is their enemy? Get real and toss out this ridiculous paranoid mindset and start telling the world what is happening. Open the windows and let the sunlight in, for heavens sake!!
So, keep a stiff upper lip and make your own plan. I personally expect good news and a steep climb from here, but even if the news is bad, I will be watching like a hawk and looking for a double or even a rebound triple.
And thats the way I see it, IMHO.
OT: It is relevant that another company, NESS, is exploring for oil in Israel. They are not keying on the Deuteronomy passage but they are quite serious about it. I made some money trading them last year, but they have not met my requirements from a charting point of view this year. Still got my eye on them, though.
http://www.nessenergy.com/
Just backgrounder info, IMHO, (NESS not good chart right now IMHO). But, in the interest of being fully informed about oil & gas activities in Israel, you might be interested in checking them out too.
Also, I recognize NESS is off-topic for Zion, so I'll mention NESS no more.
Imperial Whazoo
Thats it, rdavis - minus the colors, of course, but the leg shape is clearly discernable.
Thanx,
Imperial Whazoo
I may be incorrect in my recollection but I think I originally got the map off of Zions old page. The link used to be there but it is not referenced in any of the new pages.
If I also recall correctly, the original was a link to the PDF on the Oil & Gas Journal site but, the O&G Journal folks "limited" access to the PDF is some way so that it was impossible to save the PDF on a local hard drive. Since I'm a bit of a dweeb, I was able to use a snap-shot utility to capture a BMP of the screen itself, but I was unable to save the PDF. Now, Zion seems to have removed the link and thus the access. It was most likely a management decision due to the "volitile" nature of an apparent fulfillment of a prophecy. But, let me just tell you, the green leg is cool simple due to the blessing in Deuteronomy. It is just cool & that is all there is to it.
Maybe if Zion got barraged with repeated requests to re-post the link, they would do so. I kind of question this kind of management decision. I mean, its not like they are making much effort on their page to mask or hide the connection between Bible passages including in particular this one (Deuteronomy 33:24) and their business activities. Even so, maybe somebody grew a tad hesitant and decided to try to soften the razor sharp impact that map has, for some reason.... wolf in sheeps clothing? Who knows. Anyway, I wish they'd put the link back.
Imperial Whazoo
So: if possible, post that map. I can't or I would (except via one-on-one e-mail, which I'd be delighted to do, if asked).
Imperial Whazoo
Hey patience -
We have two wells, but thats not all. I posted (message #17056) a summary that is way long but check it out. BIGN has a heck of a lot more that just two producing properties. Due to their pathetic PRs, I can't exactly say how many they have, but there is more to this company than just the two in Grimes and the two being drilled and the "promised" E. Texas LOI. They've got miscellaneous income stream from several royalty interests, & seismic for lease, and leaseholdings adjacent to a prolific horizontal well in Lake Erie and a lot of stuff indicating that they actually have a plan and are implementing it.
What we all need is a thorough explanation overview of their business operations. We, of course, need to get the LOI under our belts & we need good news on the wells in Grimes in California. But, there is more value here than just two wells and two being drilled.
So, the price really really really ought to be higher than it currently is, IMHO.
Imperial Whazoo
I have been following this company for a long time. I want to direct everyone's attention to an article in Oil & Gas Journal dated 07/05/04 and entitled "Pace Speeds Up In Exploration for Triassic Targets in Israel". I'm not a subscriber so I don't have access to reprints on their web site (www.ogj.com) so all I have is a bitmap of one of the pages. Somebody can probably give the board folks better access to this than can I, but I think its important enought to try to verbally describe.
The blessings on the tribes of Israel, of course, covered Asher (one of Jacob's sons) of whom it was interestingly & somewhat mysteriously said: "And of Asher he [Moses] said, Let Asher be blessed with children; let him be acceptable to his brethren, and let him dip his foot in oil." (Deuteronomy 33:24.) Obviously of interest is the phrase "let him dip his foot in oil". Now it always seemed an odd kind of blessing and it would seem far fetched to extrapolate this to mean petrolem type oil. However, check out, if you can, the map on the second page of the referenced O&G Journal article (I don't have the entire page... only a BMP of the map from the page, so I can't direct you to the precise page).
Let me describe this map from O&G Juornal. You see a tan area covering Syria, Lebanon & northern Israel, including about 1/6 of the map area in blue, representing the Mediterranean Sea. Bisecting the map, shaded in green, is an oil & gas field, most of which is in Syria, but a postion of which extends into Israel. Now, the green shaded area ia shaped like the part of your leg and foot that extend below the knee. So, it looks like a leg and the part of the leg that extends to northern Israel is a foot. So, you have a foot, the toe of which extends into Israel. The area of Israel is Asher, and the place where the Meged oil discovery was made is the toe of the foot. So, here we are, about 4000 years after the prophecy and the oil field is shaped like a leg and a foot, and the foot's toe extends into Israel, where the prohecy said "let him dip his foot in oil" and there we have this huge oil discovery. Pretty cool, huh? So Zion Oil is drilling for oil in that place; in Asher.
Anyway, because of this, when I first saw the map and recognized the shape and had the prophecy recalled to my attention, I immediately began to watch Zion.
I hope somebody can get a copy of the article (or at least a link to the page with the map) so everyone can check it out. In lieu of that, I have a BMP I cut-n-pasted way back when I came upon all of this. If you want me to send my BMP to you, send me a private message & I'll e-mail you.
Imperial whazoo
CYTR .... the downswoop is over, building strength for a turn.
I watch/listen to several each day. Part of my routine.
I think mn1.co is lousy in comparison with tradersnation.com. Tradersnation is real professional and you gotta love their ads.... I mean to tell you, whoever their ad guy is at tradersnation certainly has his thumb on the pulse of the best advertisements going on!! Every time the music for the Coopers Tires or the Jaguar ad comes on each day, I stop and watch them for the 100th tim. Little 1 minute skices of true art, IMHO.
Anyway, if Paul wants first class exposure, he should pay Tradersnation for an interview... a 20 minute telephone interview at about 10:20 Central time is what they usually do.
I'll tell you this much.... I've watched Tradersnation every day on the internet for a long time now and I have repeatedly seen a stock jump up within the very 20 minutes that the interview is being done. Tradersnation has some really professional listeners and they do not hesitate to jump in with both feet when a paid interview is done and done right.
Anyway, mn1.com will be OK but Tradersnation is really first class and well worth it, IMHO.
Imperial Whazoo
If I remember correctly, as recently as 2 weeks ago, whenever a trade would tick at, say .018, there would be a mirrored trade instantaneously. My recollection was that it was, for example 35,000@.0175 followed immediately by another, 35,000@.017 or at .0175. My recollection was that, up until very recently, the MMs were mirroring at equal to or slightly below. Transaction at .0175 followed by identical size at .017. Now, they simply prop it up with 100 share trades at .019. The "mirroring down" has ended and now they are propping it up using ridiculous little 100 share trades. If the activity involved some size to the .019 trades, it would probably mean that there is actually impending movement upwards. With them all being 100 @ .019, there is no momentum. They are propping it up.
Maybe there is someone out there who would expose the fact that they have been on the MM side of the table at some time in their personal history. Frankly, I suppose that the floor boss at any MM trading desk is going to direct this kind of activity, but unless you have actually walked a mile in these guys shoes, I can not visualize any logical explanation. Anybody out there have any first hand knowledge they'd like to share with the rest of the board?
Imperial Whazoo