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I dont know - seems their wiggle room is getting tighter and tighter. Should we get a PR tomorrow detailing a plan of action it would be welcomed but they are definately tight on money and have few options IMO
During the first half of the fiscal year ended June 30, 2008, we were actively engaged in the day to day management of Ignis Barnett Shale, LLC, our joint venture with Silver Point Capital, LLC. On December 21, 2007, following the resignation of our Chief Executive Officer, Michael Piazza, we were removed as the day to day manager of the joint venture by Silver Point Capital and our services agreement with the joint venture was automatically terminated. Thereafter, the joint venture retained Mr. Piazza and other consultants of ours to work directly for the joint venture. Consequently, we no longer have an active role in the Ignis Barnett Shale LLC.
Kick ass!!!
Im headed to read the whole thing ASAP will highlight details later
I'm going to start averaging into this ASAP
I found what I suspected I would find. They arent ETF's they are ETN's and are basicly investing in derivatives. Some scary shit unless you are thinking that gold is a really good long bet. I would like to have some exposure to this ETN its symbol is DGP. Im of the opinion that the next bubble will be metals and the dollar will devalue considerably over the next few years. That is why Im considering putting a bit of money in this ETN as it has double exposure and will melt up quite nicely as the buck takes a nosedive.
Im looking for a leveraged ETF for part of my investment. I know at least one exists but I cant remember the symbol or who's offering it is. Anyone else have any ideas????
Could someone please advice me on a leveraged or ULTRA gold ETF??
If I was running this company I would build up a cash position and then do the necessary work to bring online the Acom.
Acom A-6 prospect: The prospect covers 570 gross acres in Chambers County, Texas.
Acom A-6 - Over 9 Bcfge potential; 25% WI, 18.75% NRI
Chambers County, TX Low-to-moderate risk (40-80% success likelihood)
One well, cost to develop: $1.4 million, net
NPV10% (at $6 per Mmbtu gas): up to $6.0 million, net
Fact of the matter, it's really that simple. When you are in a tight situation (Im sure many of you understand what being tight is all about - if you dont, you dont have squat in the market these days) you make due with what you have that is proven. The company has gone as far as saying that they will not be entering any wildcat operations - which the Acom is not. This is what I would do.
The company has already told the market that they are "cash flow positive" in both the A-6 and the Barnett. Next will be a profit on the A-6 and later down the line the revenue sharing with Silverpoint. In all, the timeline for success here may be a longer one than most investors can tolerate but I'm secure holding my position for the inevitable come back of Ignis.
I think this is a no-brainer
FWIW - if the company hasnt engaged in any new deals I suspect we will turn a small profit. How much profit will be reported is a direct correlation with how fast the did the workover of the A-6 and the extension of the 10-K.
"One Hand Washes the Other"
Buddy, Im not stuck and by no means do I only invest in highly speculative stocks. So Im down a few thousand dollars on IGPG - who cares. Its a highly risky investment and I expect volatility in a company re-emerging from a situation that prior to new managements activities was surely going to go bankrupt.
Chances of Bankruptcy here at IGPG is less than 10% IMO
Chances of new revenue being brought online before YA global can start selling again is almost a certainty since they cant dump below .03 - gives managment the wiggle room they need and the time to be selective.
10-K due 15 business days after NT 10-K filing which should be the 17th
A Q: for sheff or anyone that can answer it.
When a company files an NT 10-K how many days do they have to file??
Lets get this gap closed
"We now have the capital structure, management, industry connections and links to financial partners that will enable us to do so."
People are probably doubting whether the company can get financing in the current credit crunch and are selling. I still believe Petrofinanz is in the picture but its only a hunch.
Everybody that is long the market, no matter sized market cap is getting hammered, including me. Yes Im still long here but Im not buying anymore of this. Ive been forced to average down in many of my mutual funds and stocks. Even my bond funds are acting weird. My advice is to stay long and absorb what you can by buying more if possible.
NT 10-K filed on the 29th
We've finally rebounded from our lows and we are going into the peak natural gas season.
Municipalities will undoubtably have funds that will be spent in the 4th Q. I suspect we will see some new orders then. Im staying long and will buy more on weakness. We are in the early innings with DGLY - Im looking out 6-9 months or longer as the market weakness currently is holding back a lot of great stocks.
Your right, I dont mess around with penny stocks. Most of the money Ive made came from investing in stocks that shouldnt have been penny stocks (Oil and Gas back in the 90's) They were actually trading far below 5 bucks back then. Im just applying what I know about distressed assets with IGPG. It should play out well and if it doesnt no big deal. I can afford to lose my investment here. Ive made a bundle in the last 10 years.
You do know that a company is no better than the people running it. You are calling the new management "crap" before you ever have given them a chance. So far they have staved off YA Global, become cash flow positive and are now looking for suitable projects that will have a positive effect for the company. Beyond that, they still have prospects that are probably going to bring more to the bottom line once the company is in the financial condition to exploit those prospects.
There is also the deal with Silverpoint that is closing nearer.
All in all, not as bad a picture as you seem to believe.
It took time for me to build my position - Im not some piker looking to make a couple bucks here I see longer term value if the company can execute and get rid of YA Global. We'll be getting our 10K soon and then I would suspect we will find out about who is financing the company among other notables that will be included.
You keep being you - calling the company a POS and wasting your money painting the tape since you think the company is crap.
"63 days until huge record sales & huge net income with the Q3 report in ratio to the current market cap. This stock is going to go nuts, ZYXI-style, IMO."
I can get onboard for that - I have looked at it before along with REPR just havent pulled the trigger yet
I think he's trying to give you kudos for your stock picking ability. He was saying that he didnt see the value in ZYNEX that you saw and probably would have passed it over.
I owned ZYXI until it got to 5 then I sold
I own ALIF now with the proceeds from that sale.
I also own DGLY
I think you guys are some of the best stock pickers around iHub.
Your stories are lame - always one step ahead according to you.
Its OK with me if you pay up for shares - Im long 2 mil at .004
Im havin a better time than you.
You arent very consistant.
It looks like whoever was selling their restricted shares over at IGPG are done. A little volume could send it up easy.
Arent there better things to do other than watching LII and posting about it all day?
Honda already has a NG vehicle for sale it comes with the neccesary equipment to use your home gaslines to refuel the car.
Both the Montague and Cooke Counties Barnett Shale prospects have produced over 19 million dollars in just a couple years to repay Silverpoint. Sounds successful to me.
If you really need to know you find ways of getting information that other people seemingly cant find. Thats the nature of this game.
You do your DD, you stick to your plan and you execute it.
Projects
The ACOM A6 well has been productive and has generated a positive cash flow for the company. The well is currently under a workover and production is anticipated to restart as soon as this is completed. Upon recommencement of production, the Company will assess the feasibility of adding production capacity, both in terms of investment required and in terms of logistics capacity. The latter is of importance as the capacity to transport oil out of the area seems to be near full capacity at present.
Ignis Barnett Shale Joint Venture
On November 15, 2006, we entered into a joint venture with affiliates of Silver Point Capital, L.P. through a limited liability company named Ignis Barnett Shale, LLC. The joint venture acquired 45% of the interests in the acreage, oil and natural gas producing properties and natural gas gathering and treating system located in the St. Jo Ridge Field in the North Texas Fort Worth Basin then held by W.B. Osborn Oil & Gas Operations, Ltd. and St. Jo Pipeline, Limited. The purchase price for the acquisition was $17,600,000, subject to certain adjustments, plus $850,000 payable by Ignis Barnett Shale in thirty-six monthly installments of $23,611, beginning one month after closing. In addition, Ignis Barnett Shale agreed to fund additional lease acquisitions up to a total of $5,000,000 for a period of two years.
Under the terms of Ignis Barnett Shale’s operating agreement, we agreed to manage the day-to-day operations of Ignis Barnett Shale and the Silver Point affiliates agreed to fund 100% of the purchase price of the transaction and 100% of future acreage acquisitions and development costs of Ignis Barnett Shale to the extent approved by Silver Point. Ignis Barnett Shale’s budget, its operating plan, financial and hedging arrangements, if any, and generally all other material decisions affecting Ignis Barnett Shale are subject to the approval of Silver Point. We assigned our intellectual property directly related to the Ignis Barnet Shale all of our intellectual property related to the joint venture and its activities. Distributions from Ignis Barnett Shale will be made when and if declared by Silver Point as follows:
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(i) To the Silver Point affiliates pro rata until the Silver Point affiliates have received an amount equal to their aggregate capital contributions; then
(ii) 100% to the Silver Point affiliates pro rata until they have received an amount representing a rate of return equal to 12%, compounded annually, on their aggregate capital contributions; then
(iii) 100% to us until the amount distributed to us under this clause (iii) equals 12.5% of all amounts distributed pursuant to clauses (ii) and (iii); then
(iv) 87.5% to the Silver Point affiliates pro rata and 12.5% to us until the amount distributed to the Silver Point affiliates represents a return equal to 20%, compounded annually, on their aggregate capital contributions; then
(v) 100% to us until the amount distributed to us under clauses (iii), (iv), and (v) equals 20% of all amounts distributed pursuant to clauses (ii), (iii), (iv), and (v); then
(vi) 80% to the Silver Point affiliates pro rata and 20% to us until the amount distributed to the Silver Point affiliates represents a return equal to 30%, compounded annually, on their aggregate capital contributions; then
(vii) 100% to us until the amount distributed to us under clauses (iii), (iv), (v), (vi), and (vii) equals 25% of all amounts distributed pursuant to clauses (ii), (iii), (iv), (v), (vi), and (vii); then
(viii) 75% to the Silver Point affiliates pro rata and 25% to us until the amount distributed to the Silver Point affiliates represents a return equal to 60%, compounded annually, on their aggregate capital contributions; then
(ix) 50% to the Silver Point affiliates pro rata and 50% to us.
Ignis Barnett Shale’s operating agreement also provides that Silver Point may remove us as a member and our interest in the joint venture will be forfeited if we provide them with “cause” or if we enter bankruptcy. Generally, Silver Point will have “cause” to remove us from the joint venture if:
• we or any of our officers or significant employees or consultants: (i) commits a felony or crime of moral turpitude; (ii) commits fraud, bad faith or gross negligence in performance of their duties to the joint venture; or (iii) commits a material breach of the joint venture agreement;
• we attempt to transfer out interest in the joint venture in violation of the operating agreement; or
• if we fire or terminate our consulting relationships with Michael Piazza, Fred Stein or Eric Hanlon.
If we lose the services of Mr. Piazza, Mr. Stein or Mr. Hanlon because they have quit, died or become disabled, and we are unable to find a replacement to Silver Point’s reasonable satisfaction, then our distributions from the joint venture will be reduced as follows:
Years of service prior to termination
Name < 1 1-2 2-3 > 3
Mike Piazza 25% 20% 15% 5%
Eric Hanlon 20% 15% 10% 5%
Fred Stein 30% 25% 20% 5%
The operating agreement provides that Silver Point will have a right of first offer on any debt or equity financing we undertake prior to November 15, 2008, subject to similar rights we previously granted to Cornell Capital.
We also agreed not to make any additional investments in parts of three North Texas counties, the area of mutual interest that Ignis Barnett Shale established with W.B. Osborn Oil & Gas Operations, until the joint venture has satisfied its obligation to W.B. Osborn Oil & Gas Operations to purchase an additional $5 million of acreage. Thereafter, the joint venture will have a right of first offer on any future investment opportunity we desire to make in the area of mutual interest. If the joint venture does not exercise its right of first offer, we can pursue the opportunity, subject to some limitations during the first 18 months after the joint venture completes the $5 million additional investment with W.B. Osborn Oil & Gas Operations. If the joint venture exercises its right to pursue an opportunity, we will have the opportunity to co-invest up to 50% of such investment up to $10 million.
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We charge a management fee to the partnership to handle day-to-day operations. For the year ended June 30, 2007, we recorded $142,500 in fees. Until such date the Company earns an equity interest in the Ignis Barnett Shale Partnership, we will not consolidate or record any transactions with regard to this partnership. Therefore no financial impact effects our financial statements as of June 30, 2007.
That PR had detailed answers to many of the questions we have been posing on management ever since we got in touch with them.
The news about the Barnett Shale dealings and Silverpoint is very encouraging also.
The stock might not be going to the moon but things are progressing at a good pace.
Dear Shareholders,
Please find herewith today's press release providng an update on Ignis.
With kind regards,
Marc Lakmaaker
Ignis Provides Update to Shareholders
DALLAS – 29th August 2008 - Ignis Petroleum Group, Inc. (OTCBB: IGPG) today provides an update for its shareholders on the Company.
Several changes have been implemented over the last twelve to eighteen months, most notably the management structure. After the departure of Mr Piazza, day to day management of the Company has been taken over by Mr Geoff Evett, who now acts as CEO and Chairman of the Board.
The four areas Mr Evett has been concentrating his efforts on, have been the restructuring of Ignis’s capital structure, especially in view of the convertibles outstanding with the Company’s senior creditor, rationalizing the cost structure of the organization, assessment of the current project portfolio and finally the identification of new projects.
Cost rationalization
Management has been down sized and many other costs the previous Management carried have been cut. As a result, Ignis is now generating a positive cash flow, enabling the organization to put in place its restructuring program.
Projects
The ACOM A6 well has been productive and has generated a positive cash flow for the company. The well is currently under a workover and production is anticipated to restart as soon as this is completed. Upon recommencement of production, the Company will assess the feasibility of adding production capacity, both in terms of investment required and in terms of logistics capacity. The latter is of importance as the capacity to transport oil out of the area seems to be near full capacity at present.
The project with W. B. Osborn Oil & Gas Operations ("WBO") to develop the field located in Montague and Cooke Counties, Texas, continues to progress and add to production. The project has recently reached breakeven and Silverpoint Capital, the capital provider for the project, has only now started to recoup its investment. The way the deal is structured is that Ignis will start earning its working interest once Silverpoint has recovered its original investment plus a certain return. Even though no revenues are accruing to Ignis from this project as yet, the fact that it has reached breakeven and has started to generate a positive cash flow has created definite value to the Company.
At present there are no exploration or exploitation activities at the Sherburne project as Management has decided that certain technicalities make the economic viability of the project too risky a prospect to pursue at present. The rights, however, have been retained.
The Barnett Shale wells (unrelated to the WBO project) to date have proven unproductive and Management has decided to, for the time being, not engage in risky investments on this project.
Capital Structure
As announced recently, Ignis and the Company’s senior creditor have executed a new agreement under which the conversion price of the debentures held has been fixed at $0.03. This is the first step in the recapitalization process for the company and one management deems imperative to start building shareholder value. Without the agreement, the overhang of the convertibles would be of an uncertain magnitude, effectively rendering further investment in the Company a very tough prospect. With the agreement executed, the overhang is now quantifiable and allows for management to pursue further opportunities. As announced, the dialogue with the creditor is positive and constructive and Management expects further announcements to be made regarding the capital restructuring.
New Projects
The Board of Directors has deemed the Liberty Hills project, which the Company was pursuing, as not suitable for the Ignis portfolio. As a result, the Company is now in a position to actively pursue new opportunities. Ignis is in discussions on a number of fronts.
With its new management structure and contacts within industry, the Company has the ability to engage the services of certain very highly regarded energy professionals to judge the merits of new projects. With the financial and business acumen of the Board, the Company is positive on the prospect of securing new and profitable projects that will create significant shareholder value.
New projects will have to comply with strict criteria. There will be no wildcatting and projects with a high exploration risk will not be considered. Management prefers projects where proven reserves can be extended through targeted exploration or where new technologies can add significantly to the already established production flow. Furthermore, Management will assess the projects it currently holds a working interest in for production expansion.
Geoff Evett, Chairmain of the Board and CEO, stated, “We have done a lot of work these last twelve to eighteen months in restructuring the organization and have put Ignis on a new footing, enabling us to actively pursue new opportunities. We now have the capital structure, management, industry connections and links to financial partners that will enable us to do so. Furthermore, we are cash flow positive, which allows us time to analyze properly new prospects. We are confident we have been and are doing what is needed to put value into Ignis, and I look forward to informing our shareholders on a more regular basis.”
For more information:
Marc Lakmaaker
Schwarz & Lakmaaker Communication
Email: lakmaaker@schwarzfinancial.com
Tel: +49 611 1745 3980
About Ignis Petroleum
Ignis Petroleum Group, Inc. is a Dallas-based oil and gas production company focused on exploration, acquisition and development of crude oil and natural gas reserve in the United States. The Company's management has closely aligned itself with strategic industry partnerships and is building a diversified energy portfolio. It focuses on prospects that result from new lease opportunities, new technology and new information. For further information, visit www.ignispetro.com.
Safe Harbor for Forward-Looking Statements
This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in oil and gas exploration, the need to obtain additional financing, the availability of needed personnel and equipment for the future exploration and development, fluctuations in gas prices, and general economic conditions.
They actually PR'ed about everything I inquired about. I felt like I was reading a personal e-mail - lol