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Be patient--nothing will happen until credit markets stabilize
credit markets
Todays wall street journal reports large banks lending even less. Despite infusions of capital and loan guarantees , continued derivative losses along with future collapse of credit card and commercial real estate areas keep banks from lending. An intent to loan is just that---if the banks leadership feels reserves are adequate with current market risk we will loan. Obviously the bush-obama bailouts have not worked yet. Obama recently stated that his focus will be on getting credit to flow. This has nothing to do with wwei. But they promised---well they were too optomistic as to credit. But they have a loi---yes and when credit flows they will close the loan. That could be months. Reality sucks but that is where we are at---call rob if you want---what do you expect him to say?Perhaps it would be nice to have the company state that like all small companies in the world our credit is delayed by the credit crisis---and our loi will not help until credit eases.
THERE IS A CREDIT CRISIS!!!!
I am long close to 500k shares and am as frustrated as anyone--but we need to get a grip.The libor rate indicating interbank trading has improved dramatically over the last 6-8 weeks BUT despite huge capital infusions by our government[including partial socialization] our banks are still unstable. Citi is floundering and reducing size by 30 percent. Bank of America[our largest by assets] has required additional billions in cash PLUS 128 BILLION IN LOAN GUARANTEES TO COMPLETE THE MERRIL DEAL. Wells Fargo may still be in trouble. Obama is getting the other 350 billion of tarp---commercial real estate loans are in trouble.
Credit is still a problem. I believe Larry has people looking to finance wwei---but IT COULD BE MONTHS BEFORE CAPITAL MARKETS ARE STABILIZED--WWEI IS NOT OPERATING IN A VACUUM--SELL IF YOU ARE IMPATIENT OR SUSPECT SCAM-I will hang until credit returns to a reasonable degree THEN judge wwei credibility
As to 290k potential shares many if not most companies adapt provisions allowing dilution if advantageous. Dilution is negative only when te roi is poor. The company has stated no dilution is planned.
As to no revenue and little cash--old news soon to be resolved -jv provides immediate cash flow--when financing closed pro forma cash flow statements will follow.
The 10k statement is standard in exploration oil-gas and pre revenue alt energy companies as I am sure you know
asia pacific
Our broker at global is listed on asia pacific website. The asia pacific site states their syndicate will finance projects UP TO 50 BILLION
Thank you so much for all your dd. I am long and will continue to add to my position.All fellow longs are grateful for your efforts as well
financing
Global financing is frozen. Deals can not be completed until us bailout reassures credit markets. Relax this will happen but on a much delayed timetable.
patience
Our stock remains highly speculative. I am long 325k shares.Until financing with favorable terms are signed uncertainty remains.The current bailout proposals if passed will restore liquidity to international credit markets as well. However closing 100 million loans in this environment will probably take weeks if not longer. Keep in mind no other sector is attracting investment like renewable energy. If we finalize financing,produce quality wind farms, and continue to joint venture our future is amazing. However these ifs are real. Professional long term investors do not routinely invest in penny stocks. Our investors are easily frustrated. Plus many traders are present. We could lose our entire investment. I predict otherwise-a life changing investment---IF FINANCING IS FINALIZED.
price
I believe the price decline is due to multiple reasons---traders taking profit,manipulators selling small lots to create buying opportunity, and over-reaction to general market panic. When wwei finalizes financing AND shares those details price will rise and stabilize. Until then estimates of project profitabilty and future cash flows are difficult. Additional announcements will add further value. Then completing projects in 12-18 months will create another jump in pps. Own 300k shares--continuing to add.Fully understand that this is very speculative but--having Chinese board members who were former government officials, and chinese jv partners greatly reduces risk.
Dangerous time
We all know that if there is no jv or signed ppa our investment is essentially worthless. However with a pps so low selling now is foolish. China works at their own pace. The company made a huge mistake by suggesting a signing was imminent when they had no true control. But the story remains as compelling as ever.When new bashers suggest hopelessness its usually seasoned investors preparing to take advantage of long suffering retailers.
As to who would believe in bakers? The same kind who believed a harvard drop out had a great software idea while working out of a garage[ gates]Most risky penny stocks fail--but selling now before the final act will only generate regret.
Of course you have made 18k in the last 2 days.And dilution is going on---sure---and its the company selling shares not frightened retailers who were married to the early August ppa selling. Why thank God you came along to share your prophetic knowledge. I am going to sell all my shares right now---NOT.
IF YOU CAN NOT AFFORD THE CURRENT REDICULOUSLY LOW PRICE WORK A FEW MORE HOURS AT THE DAY JOB. AND PLEASE DON'T TELL US WWEI HAS BEEN NATIONALIZED--YOU HAVE SEEN IT BEFORE.
Reason for wwei jv offer
Having a ppa with no turbines for 3-4 years is of little value. The opportunity to have a functioning revenue producing wind farm within 12 months is certainly worth providing wwei a discounted buy in---if they can use yatu to expedite turbine delivery. Great deal foe wwei.
turbine multi year waits confirmed
John Hofmeister [Shell executive] on Glenn Beck this week---also on Charlie Rose show. During Rose interview stated wind is great but if you opened a wind farm today there is a 3 year wait to get turbines. Yatu relationship and on time turbines a huge benefit to wwei.
china permit process delays all industries
On cnc tonight a one hour special on china business aired. One of those interviewed was the ceo of a hip american clothing line. Several china locations sit vacant still awaiting approvals. He related having to go thru 13 levels of government permits. Level 6 required a copy of the ceo's home utility bill to see if his address matched his passport. In the last conference call Mr Lee seemed surprised that we wanted a specific date of ppa approval. His response was that this is china--they approve on their schedule. It could be months before approval---but if it is eventually received this will be a great investment. Remember that insiders own the most shares--can you imagine how this is driving them crazy as well!
Shell shale technique
Tonight as I was channel surfing, a show was discussing Shell's proposed technique to get oil out of shale---another rock like our carbonate. They are using electic cables to heat the oil. Surrounding the test area they place freezing cables to prevent contamination of ground water. They will do the same with carbonates ----the real question remains--will they buy our property and pay us a fair price?
Major factor in pps
I too am very frustated with having no public evidence that management or ir department exists. Initially I felt the role of carbonates and extraction difficulties was the reason for low pps.[this despite norwest showing bitumen flowed above 85 degrees celsius---pre steam.] I now believe the main fear is having no access to capital to develop the project. One pod requires 300 million dollars. With no functioning production wells we have no proven reserves---therefore bank loans will not be available. If the testing results and meeting presentations get price to remain above three dollars, a large dilution could provide capital to begin pod development. Wi thout such an option Strata has no leverage. The market is not convinced Shell or Husky,despite their involvement in carbonates, will step up and pay a reasonable amount. If they do not and Strata can not access capital--strata is dead. Those of us invested are believing that management will act like management when test results are in and attempt to raise capital.If they appear successful suitors will arrive and we will be vindicated . If not I have made yet another bonehead investment. I pray for all our success.
Website presentation
Strata has a presentation on the website. Terry stated that they are not exploring the other 50 percent of Cadotte leases at present. They are concentrating on the production technique testing. He did say the testing was going fine but no results would be released until ready for a public statement. He is unsure of timetable because results are evaluated at an outside lab. THEY DO PLAN TO ACTIVELY PROMOTE THE COMPANY IN SEVERAL MONTHS WHEN THEY HAVE TESTING RESULTS. HE ALSO STATED THAT SHELL IS NOT THE ONLY POTENTIAL BUYER---EUROPEAN OIL AS WELL AS CHINA AND INDIA WILL BE INTERESTED.SO WE WAIT FOR POSITIVE RESULTS.If no buyer we will need to develop a pilot project. Website presentation shows possible cost and timeline to develop project.
Big oil must spend its money
If the grilling by congress is any indication life is going to continue to get worse for big oil. If Obama and his socialist agenda is elected taxes on profits are inevitable.CNBC Fast Money discussed that they have few options but must use profits on exploration and acquisition--even if extraction costs make such deals unattractive. Also keep in mind that while oil will fluctuate in price it will rise higher long term. Our asset grows in value as each year passes. If Shell makes a low ball offer it is prudent to take the painful path of development. Remember that can take years. However as each year goes by technology will make carbonate bitumen extraction more profitable. A buyout is inevitable whether now or several years. Time increases the value of our onvestment.
patience is a virtue
Other company presentations have stated[eg Ivanhoe energy] that the define asset and sell process is over. They claim recent sales for such ventures return only 20-28 cents per barrel in the ground. If the other half of cadotte leases also has 2 billion barreks un the ground --30 cents at 4 billion barrels is 20 dollars a share. Also remember that Goldman Sacs recently predicted oil prices of 170-200 dollars per barrel by year end . Dept of energy predicts less but still over 100 dollars per barrel. Remember although blackrock was a producer, oil was only 60 dollars a barrel at sale. Cagievet you are a leader . Do not set an early timetable. If test results are good this is still a great investment. But the new paradigm may require a proven attempt at production to lock in max value. This maY NOT BE A ONE YEAR HOME RUN. Remember Blackrock took 8 years.If test results are bad we will get little value. If they are adequate this will be a life changing investment but may take time. Remember Shell has committed 27 billion to oil sands refinery,makes more profit per barrel in oilsands than anywhere, is committed to oilsands carbonates, and has stated its future is in oilsands. IGNORE THE STOCK PRICE!!!!!!! Weak hands are selling---investors are buying.Cagievet your instincts are correct.
Spoke with investor relations today
They are continuing to test different production stategies as well as performing resource evaluation on the remaining 50 percent of the Cadotte leases. This will take until Dec or Jan. IR is not aware of discussions with Shell but stated that management would not share such info until a release was ready to be made. He also stated that Norwest frequently brokers buyouts[both Shell and Strata are clients]. The huge bearhead leases are not in exploration plans in the short term. Again IR volunteered that carbonates are simply not an issue. Stay bullish but be patient.
A pilot study for carbonates would mean a project dedicated to largely carbonate extraction. Economic viability would depend on many factors including extraction percentage,extraction costs,transport costs, refining costs as well as general business expenses as well as oil prices.It is true that isolated pure carbonate projects have not been proven. However that does not mean that largely non carbonate areas with significant carbonate[eg shell carmen creek in the debolt carbonate layer] have not proven that certain processes are successful to an acceptable degree. These types of projects would NOT be considered pilot projects for carbonates. I agree with tsoprano that the only way to resolve most likely recovery of 570 million barrels while having no proven pilot studies in carbonateis to assume norwest knowledge of success in area debolt. The only other conclusions are that the report is naieve or fraudulent. Why even consider fraud when norwest is such a large respected company. With the norwest president signing the report it would risk ending the organization. Instead I bet on specific knowledge of carbinate success in none pilot projects
Who to believe--negative bashers or geologists--
Shell and its world class geologists believe oilsands are the companies future. 500 million invested in carbonate leases without reserve estimates prior to purchase. 27 billion committed to a 2 decade refinery project in the oilsands.[chevron 20 percent owner. If only they were sent the wiki link they could have saved their money. And poor foolish Norwest. Their president and chief engineer signs off on a report calculating a npv of 1.2 billion. If only our bashers would spell carbonate and get him a wikipedia link he would correct his error and put 0 as the npv. What about Husky and the ever growing number of companies investing in carbonate bitumen.ARE THEY ALL IGNORANT FOOLS? OR COULD THEY HAVE NON PILOT PROJECT DATA THAT OUR BASHERS DON'T HAVE?WHO DO WE BELIEVE? tHE TOP OILSANDS GEOLOGISTS AND CONSULTANTS OR fellow posters. I would agree that this investment should be viewed as 1-3 years to success.Do your dd. Buy a company not the stock. Day to day price fluctuation means nothing. Weak hands currently being swallowed by more experienced patient investors. Good luck and stay strong.