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Interesting post ...... SEC filings say Avalon has cash for the workovers. As for wells nobody wants .... ChandlerBorn had some very informative post concerning the Grace wells on the Bedford BB. Lots of folks think these wells have value.
Please explain once again, why you think the wells will go dry, are you suggesting the oil and gas (and water) in these zones will somehow just disappear?
Interesting post, same theme, but interesting. Natural gas prices, I think those that follow natural gas prices can comment on what will happen with this price index when it starts getting cold.
One interesting note, if you’re in the oil business, everyone knows about the Marcellus Shale. On Oct. 3, 2011 Noble Energy, announced it has closed the previously announced agreement which creates a joint venture partnership with CONSOL Energy, Inc. (NYSE: CNX) for the development of Marcellus Shale properties in southwest Pennsylvania and northwest West Virginia. Under the agreement, Noble Energy acquired a 50 percent interest in 628,000 net undeveloped acres for approximately $1 billion. . In addition Noble Energy agreed to fund approximately $2.1 billion of CONSOL's future drilling and completions costs, which are expected to extend over an eight-year period.
With that some might think there is value in Avalon’s natural gas assets.
What a crazy day!
The stock opens at .0019, someone sales 300 shares for .0016 at 9:31 this morning.
Etrade shows that trade and so does Google finance.
Why would anyone sale 300 shares for a total price of $.48 cents? Anyway; at that time, all boards showed last trade at .0016, and the stock down; I was a little puzzled, what were you thinking when you saw this?
If that is what you believe, than don't buy the stock!
Bought more today, lucky to see these low prices.
Folks, I have pictures!!!!!!
ontopofit ........ what do you think of Avalon today?
That in it's self is a point you might want to disguss with Avalon investor relations. Anyone else that has these same concerns may want to call and ask the question, just an suggestion.
You might want to call Gabe and ask he about that, I know you have been asking that question here for a long time.
Good afternoon, I did have the opportunity this afternoon to speak with Gabe Rodriguez, e-Relations: Avalon’s Investor Relations contact. I spoke with him for about 10 minutes and we had a nice conversation. I think he will do a good job in fielding investor questions and concerns. You can find his phone number on Avalon’s web page and would suggest calling him if you have questions and or concerns.
I plan on calling Gabe today.
allwaysright
What do you think of Avalon today?
Good evening ChandlerBorn, would you care to add anything to the dialog. Anything new with the Grace wells?
AlwaysRight, Love that handle, I guess you didn’t read my earlier post concerning the Executive MBA program that Harvard has offered in the past and, am told, still does. If our company wanted to offer our Executives this type of program we could arrange this through HBS, that’s Harvard business school. They would establish a six week program for our folks , we would pay the “Big Bucks” for the program, send our folks to Boston for six weeks and once they completed the course they could say they have a Executive MBA from Harvard. Executives love that, looks good hanging from the wall and putting on your resume. We benefit by putting that information on our executives bio’s, makes our guys look really smart.
Does Harvard offer an Executive MBA to the general public, at this time? No
Lovethatgreen, I think I understand what you are saying, and you can correct me if I’m wrong. The value in this company is the oil and gas assets and your investing in those assets the company holds and not necessarily the CEO. I have no issues with that logic as I invested in HDY a few years ago. The board, controlled by the old management, changed the company’s CEO and President and the company moved forward faster under the new management and new board. The assets remained the same.
The old HDY management are still large stockholders and they support the new management and board. As an investor and stakeholder in HDY, the new management is doing a terrific job moving the company forward.
As an investor and stakeholder in Avalon, I have no problem with the direction KR is taking the company, I would hope when financial resources are available that he would hire some additional folks to help carry the load.
Always Right, it is not uncommon for oil and gas companies not to report unproven oil and gas reserves to the SEC. That information was reported back in 2010 or at least that’s the date on the web page.
They still show that data today. One would think, common sense, that if that data was incorrect it would have been pulled from Avalon’s web page. One would also think, common sense, that if that data was incorrect an investor in the company would have voiced their concerns along time ago. I see no legal proceeding against Avalon in any of the SEC documents related the reporting of this information,“ projected reserves are $.04 per share”, in the Grace properties. Nor do I see any SEC warnings to the company for placing false or misleading information.
It is not against SEC rules for investors to contact the company’s investor relations and ask questions about published information for clarification. This is quite common and I have done so on numerous occasions. They will not or I should say, they should not give you any new unreleased information. This information has been released for some time.
If you don’t believe this data then use that as a base for your investment, it’s your money and one should tell you how to invest.
Oildriller ……. I doubt that you have known KR before the inception of AOGN and I doubt you have never known him!
I have read all of the SEC filings from day one about this company and I have read your posts about Avalon and it appears from your posts you have not read the SEC filings, if you had you would not have made the big mistakes in the little information you have shared.
I don't think so!
Driller4oil, Thanks for your post. Please explain how you know more about Avalon and the CEO than anyone else?
This is not a test and I am not trying to be funny!
What is your connection? Do you live up in MN?
Snowdogs
Did you work at SnowDogs? Were you past management at SnowDogs? Were you a supplier for Snow Dogs? Were you a investor in Snow dogs?
Avalon
Did you do work for Avalon? Did you sell any oil and gas properties or try to sell oil and gas properties to Avalon? Were you a service company to Avalon? Were you a consultant for Avalon? Were you a vendor to Avalon? Were you an advisor to Avalon?
Now the funny part! .... Are Kent's priest?
Please help me understand how you know more about Avalon and the CEO than anyone else.
Oildriller …… thanks for your email. I love your passion and you have some strong beliefs. Believe it or not I do listen to what you post and your input is appreciated. I do not know Kent nor do I know Jill. I do look forward to meeting them if given the opportunity. I am not Kent nor do I think he is an LSU fan, as we are here in Louisiana. If you come to New Orleans let me know and we can go grab a beer.
You are right, during the day I do write my posts in word and cut and paste them to post. I do not have time during the day to sit and write them in one setting. When I post at night I do write them on line. As last nights post was rushed as my wife and I had dinner plans with friends.
In regarding to my post today …..”Someone helped Avalon establish a value of the Grace reserves, “Projected reserves are $0.04 per share.” This data came from the Avalon web page under properties, Grace Wells, Lincoln County Oklahoma and was also on the Investor Relations page “Avalon Oil Presentation September 2010 – download. This information is not represented, in any of the SEC filings that I can find. But I believe, the company thinks there is value with reporting that information and they did. It’s out there and its on the table, if it is incorrect then they might have some serious problems.
2002 was Sled Dogs, I would not have invested in Sled Dogs, that product had to much liability from me. It was reported that Kent made the $500K investment and he owns those shares. I would think he paid the taxes on those funds. I also think Presidents and CEO’s of public companies get paid way to much, most have a minor ownership position with stock that was given to them. After they cash out those shares they get dollars. If Kent cashed out of Sled Dogs, paid taxes on those monies and reinvested in the new company I can understand your position.
Remember the dialog about Kent’s Executive MBA at Harvard. I go to Boston on business very two years, always meet with the same folks and they take me to the Harvard Club for lunch or dinner when I come into town. They are grads and members of the club. I asked my business friend, does Harvard offer an Executive MBA now or in years past? And if one claims to have an Executive MBA from Harvard what does that really mean.
His email reply was as follows ….. It means a company you worked for has an agreement with HBS to have you attend a short program (less than 6 weeks I believe) with other similar folks. He tells me that Harvard has done this in the past and they would do this in the future. I found this interesting because one of our Vice President also claims to have an Executive MBA from Harvard. The diploma was on his wall in his office.
A little history, I don’t believe bankruptcy is in the cards for Avalon. The reorganization was back in 1998, with that reorganization a reverse split 54 to 1. Then again in 2000 a 54 to 1 reverse split. Both of these reverse splits were smart business moves at that time.
Then in 2002 and this activity is what I believe will keep Avalon from ever going into bankruptcy, at least while Kent is in control. Kent’s preferred stock purchase, remember he purchased 100 shares, preferred, for $500K. These shares carry an 8% interest and here is the key, convertible at any time into 40% of then the outstanding shares on a fully diluted basis. Remember in 2002 no one knew what Sled dogs was going to be. In 2003 maybe a Specialty Bag Company, that didn’t pan out and again 2003 Business and Customs Solutions Company, that didn’t pan out. Then in 2004 Legion Media Partners, that didn’t pan out.
2005 defined the company and it took Kent three years with his money at stake. The MCI oil assets merger and the name change to Avalon Oil and Gas. But as you know in 2006 the MCI deal was cancelled, but Avalon was fast at work. Aug 2005 the Sooner Trend deal, Feb 2006 Sooner Trend deal fall through. Why do you think these deals fell through, I believe it has to do with the 2002 preferred stock activity. As an example, a public company asset base is worth 2 million, you want to use the company’s stock to buy assets. You find a 6 million dollar asset base purchase, after the purchase you would have an asset base worth 8 million dollars. OK who owns what, you put 2 million in, they put 6 million in, you would think 25% for the 2 million interest, and 75% for the 6 million interest. Then Kent’s preferred stock comes into play, he can convert his $500K investment, preferred stock, into 40% of the outstanding shares on a fully diluted basis, at any time. Two days after the described deal above is closed. Kent converts his preferred shares; he gets 40% of value in the 25% interest and 40% of the value of the 75% and holds a 40% position in the company. Someone tell me this is not brilliant, and that is why I believe Kent will never allow Avalon to go bankrupt, he has way too much to lose. I love Presidents and CEO’s who are large stakeholders in their companies! With that I believe he will have a difficult time finding deals where the assets are worth more than the value of Avalon. I think he learned that in trying to put together deals in 2003, 2004 and 2005.
So let’s build and oil and gas company. April 2006 Canyon Creek deal, June 2006 the KROG deal, July 2006 C&M Exploration deal, August 2006 Dixon Heirs deal, November 2006 Upshur deal, April 2007 Grant Parish deal. May 2007 Karnes County deal. Then what happen in May 2007, 20-1 reverse split, don’t be alarmed by this it is part of the plan and it will happen again. Value is value! …… October 2007 the Lake Washington deal, also in October 2007 the Gran Tierra deal, that deal pushed the envelope and didn’t pan out. April 2008 Waters property deal, July 2008 the Grace Property deal and in 2009 and 2010 increasing Avalon’s position in the Grace properties. And today we know Avalon is trying to secure the FossilTek properties and there might be other deals we are unaware of.
“Avalon holds a 70% working interest in the 5 Grace Wells, Grace #1, Grace #2, Grace #3, Grace #5A and Grace #6 in Lincoln County, Oklahoma. This property covers 1,040 acres and includes a 50% interest in a salt water disposal well and 50% interest in two re-entry locations. Initial production was 600 MCF of gas per day and 8 BOPD. Projected reserves are $0.04 per share.” The company reported they had the money to rework the wells and Chandlerborn is telling us that they haven’t started as yet. Why??? We are talking about a company with limited cash resources. Chandlerborn reports word on the street Avalon doesn’t have the money. Sounds reasonable where did the money go? How about this possibility; Avalon Advisor William D. Anderson, was Senior Vice President and Partner with Netherland, Sewall & Associates. Someone helped Avalon establish a value of the Grace reserves, “Projected reserves are $0.04 per share.” Avalon increased its position in the Grace property, and hasn’t started the rework why? Do you think they might have a buyer for the property or maybe a deal might be in the works that involves these properties? Would you spend your limited cash if you were going to deal the property away, I wouldn’t. Could this be a possibility?
Yesterday I spoke of history repeating itself in reference to this time last year. The stock price went from $.0035 to $.02 this helped all stakeholders, look at the 10K report. We were able to raise some money and pay some bills, sure the number of shares outstanding has increased but we all know Kent uses Avalon stock to pay bills and buy assets. Last year the reported asset purchase didn’t pan out, and the stock went down to $.0013. We did increase our position in the Grace properties but nobody cared because we were looking for revenues and bitching about Kent. Is there a deal in the works, history says Avalon buys oil and gas properties; I believe there is and I wouldn't report it until the stock hits at least $.01, with the report I would think $.02 a share. Then I would have a second deal to report, no way would I let the stock price go back down to under a penny. Lessons Learned. Be a stakeholder don't sell and buy as the stock is going up.
One last comment,If I am looking to make deals on oil and gas properties I am not taking my prospects to McDonalds for dinner.
Always right ....... you have also been on this board for a long time. I can understand how bitter you are. Kent has alot more to lose than any of us if Avalon fails, but his history is interesting to me, what he has done and hasn't done, what he has tried and how he has raised over a million dollars in the last year. But, today you are not going to be able to buy alot of "good" oil properties for $1M. He did use the money to right the ship, pay a few folks and have $300K of funds for reinvestment.
You also remember what happened last year at this time,the stock went to $.02 a share. You also rememember when the stock price was over dollar a share and has been going down ever since. You remember all the deals he has tried. Some of the properties didn't pan out and one deal failed because of,I believe, his 40% position. Those properties would be making Avalon big bucks today.
Let me remind everyone, the difference between a successful oil company and a failure; that is the oil they have in the ground.
I believe there isn't anything I can say on this board or anything anyone else can say that is going to keep this stock from reaching $.02 a share. I also believe that we will not receive a press release until the stock price gets to at least $.01 a share.
History has a way of repeating itself.
Driller4oil...... you have been on this board for a long time. Tell everyone what happened in August and September of last year.
I know he means Investor Relations, confirming Gabe Rodriguez at e-relations. Hoping IR didn't mean Imma Redherring.
Gabe shouldn't be telling anyone about whats going to happen at Avalon without telling us all.
OK, help me with this, who is IR ???
Good morning …………. SEG ( Society of Exploration Geophysicists) was this week in San Antonio. You have got to love technology! We are finding more ways to develop marginal plays and get more out of older fields. Today that means $$$. You have got to love Avalon’s business strategy.
In your evaluation you need to include, from the 10K report, we have “$160K in deposits and prepaid expenses.” For us stakeholder we know, as it has been reported, that the $160K is a deposit on a possible oil and gas purchase that the company is working on. If the purchase falls through we will have additional $160K cash.
Be a stakeholder don’t sell, buy more and cost average your holdings.
Technology changes the way we value things.
Sometimes when we are asked, is this undervalued and we say we think it is and others scratch their heads wondering …… how you can say that!
Let’s use the Fossiltec properties as an example, five producing oil wells and 33 producing gas wells. The properties produce approximately 6 barrels of oil and 200,000 cubic feet of gas per day. That is not a lot of daily production but it does have some value.
“The information below is not to suggest that Avalon is doing this or has plans to do this activity in the future, but if they did it would add value to the asset.”
“It has been announced that the developer of waste heat recovery power generation projects, has received a $1.95M commitment from the State of Louisiana Department of Natural Resources toward the installation of a large scale waste heat recovery system in central Louisiana.”
Government like to give money to green projects these days.
What does this have to do with the oil business?
OK, the ability to generate electricity using geofluids from oil or gas wells depends on bottomhole temperatures and the amount of geofluids produced from the well. Small oil and gas production doesn’t mean the pressure and flow rates on these wells can’t be used to produce revenues. The pressure and heat of the salt water and brine produced from natural gas wells, which is currently being trucked away in disposal wells, can be and is used to generate electricity, a clean, non-combustible, fuel-free, emission-free source of energy.
Did you know a gas well that has 100 gallons per minute geofluid flow at 200 degrees Fahrenheit can generate 30 kW/h from that well, and connecting this well with nearby wells can generate more kW/h’s.”
This is waste heat recovery, a Tax advantage exist for energy producers who can generate electricity at the well site. And today these systems are very cost effective.
One geothermal energy enthusiast urges oil and gas operators who have shut-in or plugged wells to do an analysis to see if the well is a candidate for producing electricity. Part of that analysis is determining the well pressure, is the downhole temperature hot enough and whether an avenue exists to run the fluid through the hot rock, of course seismic data is needed. Determining the cost also includes ascertaining what it will cost to transmit the electricity to the power grid. “You have to look at the total economic package, “But most of the cost of geothermal energy is drilling the hole. If you already have a well, you are halfway there.”
Another bit of technology that will change the way we do business and will make these less than desirable oil and gas properties more valuable.
My last post 7801, sorry about the last sentence "our stockholder equity is a lot of $1M,"should be "our stockholder equity is a $1M plus",.
I'm tired, LSU and MS State game last night, go Tigers.
Good afternoon ……. I think everyone who is a stakeholder in Avalon knows Fossiltek Inc is a Neveda corporation owned by Foy Streetman and his family, of Chickasha OK. The Fossiltec properties reported in discussion are five producing oil wells and 33 producing gas wells. The properties produce approximately 6 barrels of oil and 200,000 cubic feet of gas per day. Some reports I have seen report 300,000 cubic feet of gas per day. Mr. Streetman has been an advisor to Avalon for some time and many in the Industry value his opinions. If you don’t know a lot about Mr. Streetman go to Tropic Joes, you have to admire him for what he is doing.
I believe, if you are looking for information concerning Avalon you might find a few good leads by exploring the current financial information released by the company, the 10K report. We have $141K in cash and cash equivalents and more important we have $160K in deposits and prepaid expenses. For us stakeholder we know, as it has been reported, that the $160K is a deposit on a possible oil and gas purchase that the company is working on. If the purchase falls through we will have additional $160K cash. Some believe that this purchase is for the Fossiltek properties. Mr. Rodriguez has been trying to secure these properties for some time now, but it may be for properties we are all unaware of. If it is the Fossiltek properties, these producing properties should increase revenues for the company and an increase in revenue is always a good thing. I believe the company is under valued and has a solid business strategy.
Having said that, look back on what has happened to the company since September the first. A few stock promoters reported big things were going to happen and many people who didn’t know anything about Avalon jumped in. Thank you taking an interest in our company and I would like you to stay as a stakeholder. Between 9/1 and 9/8 47.6 million shares traded, between 9/9 and 9/13 101.8 million shares traded and between 9/14 and before the close on 9/15 15.2 million shares traded. We traded 31% of the outstanding shares of Avalon in eleven days. That in itself is remarkable. If you have any serious money $250K to $1M you want to invest in Avalon give Mr. Rodriguez a call, I’m sure he can structure a private investment in Avalon for you. As a stakeholder in Avalon I would welcome $1M cash into the company, but know with Mr. Rodriguez Preferred Stock holdings you might not get control of the company and a reverse spilt is always a possibility before he would convert his Preferred Shares into common shares.
I’m sure everyone knows that Avalon’s Director Mr. Rene Haeusler recently, 9/6/2011, sold 2.5 million shares in a planned sale. The reported market value was $4.3K, I think I might have purchased some of his shares. I also think everyone knows that Avalon Director Mr. Douglas Barton sold 4.3 million shares back in April with a reported market value of $32 K, and again I think I might have purchased some of his shares. No one should be alarmed by these sales as these were planned sales and these gentlemen are still directors. Everyone has expenses to pay. But having said that, do you really think these guys would sell their stock when big things were going to happen? Or I guess they didn’t know big things were going to happen.
Again, these last eleven days have been remarkable. Now, I would like to try and convince all of the new investors to stay, become a stakeholder in the company. Don’t sell your stock, purchase more shares as the stock price goes up and “cost average” your investment. As stakeholders we all know that getting information from the company is difficult some times and even reported activities sometime don’t pan out. Avalon has two employees and a handful of advisors. We have $141K cash and $160K in prepays, our stockholder equity is a lot of $1M, Avalon is making progress but I don’t think my fidelity retirement fund will be purchasing Avalon stock anytime soon.
Sorry about the delay, I have been watching the replay of the LSU game. My kids made the game, watching it in the stadium club as my wife and I baby sat our grandson. My son told me that Mettenberger was something special. Watching the replay I have to agree. Go Tigers, Lookout MS State.
To answer your question YES this stock is undervalued. Three times $.04 a share (Grace value) is $.12. With benefits, (all of the other properties)$.15 a share. Finding value of 500 million barrels in the ground, these days is not that tough. If you like natural gas, check out the Department of Energy's programs to promote natural gas as the "Clean Energy". You have to love our government. If you have the smarts you can benefit from the governments programs. I love the saying, "pay no attetion to the man behind the curtain". If you want to purchase oil in the worlds market, what is the only currency you can make that purchase with? US Dollars!! Energy properties are hot, at $100 a barrel.
If you think I am blowing smoke, check out the Walton family investment in First Solar. John T. Walton, bless is soul, made this company, which has a share value at $91.50 a share. The Walton family have almost has much value in First Solar as they have in Walmart.
But what does this have to do with Avalon? Be a stakeholder, don't sell, help Avalon management build this company, if you see a market advantage were Avalon can benefit let the management know. Without the human element, companies are nothing but shells. Your input can benefit us all.
Some folks enjoy doing crossword puzzles, for me I like to profile companies, being in the oil exploration business (the technology side) I like to profile oil companies. What makes oil companies successful, their finds! Sure the speculators have been around Wall Street for a long time and some times I think the street has turned into a casino. As an investor and I like to think a stakeholder, I have taken a position in Avalon along time ago as the stock has been declining for some time. I purchase usually on Fridays as the speculators cash out of the Wall Street casino. But each week Avalon shares have cost me less and less. I look at my holdings as cost averaging. I use the same strategy when the stock in moving up. But there is a limit to my investments. I don’t like to play the hype game. Some Fridays I don’t buy anything because their might have been a major swing and I’m not sure why.
Avalon’s management likes to pay its bills with Avalon stock. They will issue stock to pay this or that, they will sell stock to a private investor, again to pay the bills, and that holder when the stock times out, will sell the stock to pay their own bills. I understand this and that is an approach I can live with and plan my investment around. I also understand that Avalon likes to reverse split their stock and that is another strategy I can live with. Until Mr. Rodriguez converts his preferred shares to common stock he personally has nothing of real value to loose by a reverse split. I think Mr. Rodriguez has done a fairly good job keeping Avalon a float considering they don’t have any “real money”. But believe this or not I have seen other oil and gas companies make it when they didn’t have any real money also.
So why do I invest in Avalon. I know the Avalon business strategy works. Invest in the acquisition of oil and gas producing properties. I do believe acquiring mature producing wells and prematurely abandoned properties in proven oil and gas reserves is a great strategy. If you are in the oil business everyone understands Peak Oil. Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. This concept is based on the observed production rates of individual oil wells, projected reserves and the combined production rate of a field of related oil wells. The timeline on Peak Oil gets pushed each year, why; new oil and gas technologies, we are able to get more and more out of these wells as technologies advance.
Look at the Lake Washington field and what that field has meant to Swift Energy. Bill Moody was instrumental in bringing the Lake Washington Field to Swift as an acquisition candidate in 2002. What if Bill would have brought that same information to Avalon and Avalon made the investment, we would be having a different dialog today.
For those investors in Avalon and I mean true “stakeholders” this is our company and don’t be so quick to sell. If you see opportunities that the company can benefit from, be a stakeholder and let the Avalon management know. We all will benefit from your input.
If you have some time and you would like to profile an oil company for fun, try HyperDynamics. Doesn’t sound like an oil company does it? To make this real interesting don’t look at information related to their current status, start looking at them in 1996 when they were bankrupt. Reminds me of X-Dogs, I started investing in them when they became an oil company with little or no money. As you explore ask yourself at every step would I invest in this company. To make this simple, just go to their SEC filing and read from the beginning. (HDY)
Bottom line for me, I believe Avalon will be successful.
Grace Wells Value
I must have been asleep at the wheel. Avalon web page states the Grace property reserves are valued at $.04 a share. Did I miss this?
535,153,063 shares at $.04, $20 plus million value.
I think I will still stay pat until I can confirm this.
Trying to understand Other Properties Net valued at $1,049,514
Avalon’s Lake Washington Field asset.
Do you remember Avalon’s August 12, 2008 press release?
Oil production last quarter from the Lake Washington Field is averaging 1,100 BOPD, an increase of over 40% from initial production estimates. This increase in production, coupled with much higher commodity prices, has raised the internal rate of return to over 50% for this property. “We have received 65% of our original investment”, said CEO Rodriguez. Avalon acquired a 0.77% working interest in 3 producing units, as well as surface production facilities and two salt water injection wells, in November 2007. Since its discovery in the 1930’s, the Lake Washington field has produced approximately 350 million barrels of oil, making it one of the largest oil and gas fields in the United States. Swift Energy Company (NYSE:SFY) operates the property and has recently replaced several of the oil storage tanks.
Avalon purchased this interest in November 2007, and received revenues of 65% of the investment by August 2008. In an SEC filing they reported the cost of the Lake Washington asset at $200K. What is that asset valued at today? Back in 2007 the average price per barrel was $64.20 and the 2011 average (eight months) has been $90.53.
Avalon reports that their three producing units currently are producing over 1,000 barrels of oil per day, at the average 2011 price of $90.53 a barrel, times 365,000 barrels, total revenue would be $33.04M with a .0077 interest, total revenue from Lake Washington should be $254K a year, less cost.
Lessons Learned:
Swift Energy Company acquired the Lake Washington Field in March 2001. Lake Washington Field is located in Plaquemines Parish, Louisiana, about 60 miles due south of New Orleans. Swift Energy's team of geoscientists working on exploration and further development of Lake Washington Field have employed only tried and true subsurface geological methods to increase production from nearly 700 BOEPD at the time of acquisition to more than 11,000 BOEPD at year-end 2003.
During the second quarter of 2011, the average daily production of the Lake Washington field was 7,845 net Boe per day.
Since acquisition, Swift’s geoscientists have employed old fashioned geological methods of multiple level subsurface maps at close intervals, combined with numerous correlation sections, fault plane maps, and net sand maps which have enabled the Company to book reserves at a much faster pace than originally anticipated. The wells drilled since 2001 have encountered 58 different pay zones with current completions targeting 25 different sands.
That’s why I asked, is there something going on with the Grace Wells?
By looking at the subsurface data one could hire a firm like Netherland, Sewell and Associate to do a resource assessment estimate which would estimate total quantities in known and yet to be discovered accumulations. This would be used to place a value on the field.
Does anyone know if Avalon has done a resource assessment estimate of the Grace properties?
ChandlerBorn
-Thanks for your earlier post confirming the location of the Grace Wells. With you being on the ground there helps us understand what is getting done and what isn’t. -
-We have all been reading these new posts …. Our companies stock is expected to increase 4000%. I am holding pat until I understand what is going on here. ...... Correct me if I’m wrong, but I would think, on a good day the stock might have a market cap of three times the stockholders equity of $1,040,421, which would be $3,121,263 divided by 535,153,063 shares; stock price would expected to be, maybe $.0058 a share. With $141K of cash how are we going to see a stock value of 4000% or .06 cents a share? If that happened, the company’s market cap would be $32M. Is there some value that has not been reported by the company?
It was reported by the company …………
“The Company also acquired an undivided fifty (50%) percent interest in a salt water disposal well and offset and development acreage in the two quarter sections of the East Chandler Field. In addition, the Company acquired a fifty (50%) percent interest in 540 acres adjoining the 320 acre East Chandler Field.”
-Could these properties contain some un-reported value? -
-Does anyone know the location of the adjoining 540 acres and the salt water disposal well? I am interested in trying to find the subsurface survey of the acreage, looking for any traps that might be identified. I’m trying to understand if and what the reserves might be, or is there something of future value. The company has reported that they had $1.8M in value of unproven oil and gas properties but doesn’t break it out by property. This old seismic data can be reprocessed using new processing technologies that will give me a better understand what might be there. Does anyone know if the company has reprocessed any of the old data and could there be new information regarding the value of this property, that has not been released as yet? -
Unproven oil & gas properties $1,867,183
Producing oil & gas properties, net $219,454
-In the past year the company has spent a lot of time and resources increasing their ownership position in the Grace properties. I am trying to understand the value of the Grace properties.-
-From 6/20/2011 10-Q-
NOTE 4: OIL AND GAS PROPERTY ACTIVITY
The table below shows the Company’s working interests in the Grace Wells as of June 30, and March 31, 2011. There were not any additional acquisitions during the three month period ended June 30, 2011.
Well Working Interest
Grace #1 65.25 %
Grace #2 55.75 %
Grace #3 64.00 %
Grace #5A 52.00 %
Grace #6 58.00 %
-They currently show a value of $67,565 of the Lincoln County producing properties and $1.04M for other properties. Other properties, net $1,049,514 does anyone know what that figure represents? Does anyone have a lead on the possibility of these values increasing in the coming months?-
Producing oil and gas properties consist of the following at June 30, 2011.
Lincoln County, Oklahoma $ 67,565
Other properties, net $1,049,514
Asset retirement obligation, net $48,535
Property impairments ($481,072 )
Less: Depletion ($465,088 )
Net $ 219,454
-Do you remember the 2009 press release below? It seems Avalon is spending a lot of time and resources working these Lincoln county assets. -
MINNEAPOLIS, MN, May 7, 2009 – Avalon Oil & Gas, Inc., (Avalon) (OTCBB: AOGN) provided an update on workover operations in the East Chandler Field, Lincoln County, Oklahoma, and reported that the company has received the first check for gas revenues from Scissortail Energy LLC, since Avalon consolidated its recent acquisition of fractional working interests in the Grace Wells.
“We are pleased to report that the work-over of the Grace #2, Grace #5A, and Grace #6 wells have been completed. Avalon began selling gas from the Grace #2 in January, the Grace #5A in February, and the Grace #6 in April, and we have received our first revenue check from production on the Grace #2 and Grace #5A wells,” said Avalon’s CEO, Kent A. Rodriguez. “We are excited to have completed the first portion of our initial work-over program in the Grace Field,” Rodriguez added. “Given the encouraging price movement for natural gas, production from the Grace wells will have a significant effect on Avalon’s revenue stream going forward” he added.
-ChandlerBorn, is there something going on in Lincoln County?-
A hundred million shares of Avalon moving from $.0015 to $.0035 only represents $200K. I can't see the company behind this run. Does anyone have any solid information?
Source of Information
Good afternoon …… ChandlerBorn … Do you know if Larry Sherman is currently the operator of the Avalon “Grace” wells? Are these Avalon “Grace” wells located by the airport, sections 31 and 6.