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.... is in the mail, or what???
B
Almost every well drilled in geologic areas prone for hydrocarbons will find at least a trace or "show" of oil and gas during the drilling / testing process. The significant event that has so far eluded Zion and most all other onshore oil / gas explorers in Israel is for a "commercial field" discovery.
If / when that happens to Zion, yes it will explode. The SP that is and hopefully not the well, LOL...
Interesting article, what there was of it... Either this Givot Oil company or newspaper reporter better get up to speed on writing good informational releases.... I have no earthly idea what this statement is trying to say:
"Givot Olam Oil Exploration Limited Partnership said that more than 60 percent gas was measured in the drill, indicating the first such find in Israel."
Their investors seemed to like the news, or at least the 123% SP jump says so...
Someone post back if you find any more PR's on this well that give better details of the results to date. ZN had a nice SP pop without any news out... Sympathy rise - maybe????
tortman, here are my answers in bold:
In the weekly update they stated that they will return to the well in March 2010. If they got enough of a flow of oil from the uncased section of the well for it to produce commercial amounts of hydrocarbons or even think that they might be able to later, would they have to case that portion of the well prior to producing?
Not necessarily. Some formations are prone to permanent "skin effet" damage when casing the well due to the cement that is pumped behind the pipe to seal it in place. It is possible to permanently produce a well that is left in "open hole" condition but there are risks. Open hole completions were much more common b4 the utilization of fraccing and chemical stimulation to open back up the formation "skin effect" damage from the drilling/completion activities.
If they needed to case that section of the well, would they need something other than the workover rig that they did the swabbing with to do it?
Not my area of expertise but I believe they would need a different rig to install and run casing. Most workover rigs are capable of running and pulling tubing. They can even do a limited amount of drilling to remove cement obstructions or bridge plugs within the tubing/casing but not back in the open hole section.
I'm just trying to figure out why they are waiting until March 2010 to go back and casing the well is one of the things
that I can think of. Drilling deeper is another possibility, but I'm thinking they have a producer or a very viable candidate for producing and they may need to case this section of the well prior to producing.
I posted several weeks ago that I didn't like the idea of them testing the "3 zones in open hole" at the same time. There isn't any way to isolate them for individual testing or stimulation. Now it seems that ZN has come to realize this too. From their last PR, they stated "However, as we do not have zonal isolation in the open hole section of the well, we released the workover rig during the past week and are now evaluating the next steps that we can or should take in order to test the zones of interest individually. "
It seemed to me that even in the best of times, the KGS website showed production totals about 4 months in arrears. The latest posting for any HMGP oil sales was in August. Since the sale occurred in the August - September time frame, there shouldn't be more than one more month (Septemeber) of HMGP oil sales / production left. They should have made one last oil sale before turning over the gate keys to the new operator... At least that is what I did when I sold my last oil lease - wanted to get that last payment for my pumping duties...
Once September posts, we should see the production / sales for the new operator (Crimson Energy, Whitehawk, or whoever). I think it is too soon to be seeing the production #'s from the new operator.
You can bet your bottom dollar though that I will be following these production #'s for several years to see what the new operator does with "our" old leases...
REAZO - mea culpa, perhaps "purged" sounds a little too caustic... I will just say that Craig, Joyce and John have left or were let go, KAA has not printed an official explanation as to the exact cause of them leaving...
Badge - One of the posters on the Moon has been stating that they believe the WYO asset sale never happened (canceled or the deal fell through). That would explain the dire financial condition of the company that led to the lack of the SEK horizontal drill and purging the entire staff and eviction from the Stockyards...
I just hope there is some final resolution at some point as to what exactly happened here with the company.
You are correct, at least the little bit of recovered oil shows that movable oil exists in the rock.... Now the hard part is to find a suitable reservoir where the rock is suitably developed to hold and allow flow of the hydrocarbons (need porosity, permability and a trapping mechanism to hold it there)...
Maybe it will be uphole in the other 4 zones, maybe it will be in the Deep - as yet unpenetrated Permian...
The "swing for the fences" discovery potential in the Permian is my main reason for buying into this stock. The reward is 1000 to 1 if they hit a "middle east sized pool"....
I hope we get a more detailed weekly report this Friday, a gameplan of what's been done so far and the roadmap for the further completion attempts on the #2...
I have 10 years o/g background experience as well as following o/g investments and worldwide exploration efforts as a hobby. IMHO, the first "zone of 3" is going to be "non-commercial". At this depth, 17K+ feet and a virgin reservoir should have flowed a minimum of 500 bod with shut in pressure of >7000 lbs. Since they recovered only a jar or two of oil, the reservoir is either tight (minimal fluid production) or heavily water cut. They made no mention of how much formation water they recovered along with the limited oil.
There is a one in a hundred chance that the zone could be commercial after doing the stimulation effort. If the drilling fluids damaged the formation around the well bore sufficiently, there could be a temporary blockage of fluid flow caused by this damage. The stimulation will break down the formation under pumping pressure and induce acid / chemicals to try and clean up the formation. Extra cost and time involved, lets hope they have valid reasons to spend the extra $'s here. The logs and cuttings from the well would be data points to help them make that decision.
Even if the first 3 zones are dry, there are 4 other zones to test according to their PR. Let's hope they turn out better.
Indeed, this will be forgotten real quickly if the Weekly NR shows 1000 bopd test results on the #2 well. Waiting on some completion news with anxiety...
Is it just me or were others troubled to see Mr. Perry resign at this most crucial stage of ZN's exploration effort? I may have missed it in the filing but I did not see a reason given for him leaving. Although I wish him no ill will, I hope it was for some personal reasons and not company related issues.
It sounds like the new man in charge of the completion / drilling is very experienced but relying on a consultant for these critical functions doesn't give me that great a feeling here...
I am now predicting that the #2 well completions will not yield commercial levels of hydrocarbons but will at least have some oil and or gas shows. I am hopeful that with the new $18M rights offering proceeds, that they go back to #2 after #3 well and deepen it to test the Permian section that they did not penetrate. They alluded to that option in their weekly drilling reports. They would probably need to sidetrack and directionally drill away from the fault zone they are now in to get to the other side of the fault. Risky and challenging no doubt...
Hope I'm wrong and they get some good results from #2 and these "7 zones that warrant testing"... GLTY
JRyan - you are indeed correct, the full 23 shares per 100 would be granted if exercised... I re-read the rights offering terms.
I still think I came out ahead by passing on the rights offering though.
23 shares * 5 bucks + 39 bucks commission = avg. share price of $6.70.
I bought on the open market 100 shares at 6.22 Monday + 9.99 commission = avg. share price of $6.32.
Can't wait for the completion news to get released, it's a matter of a week or two on those first 3 zones...
you are indeed correct. I re-read the rights offering and the basic 23 per 100 shares were fixed, if you exercised them, you would get the whole amount at 5 bucks each. Only oversubscribed shares (greater than 23 per 100) would be reduced by the overage...
My broker is Fidelity where I held the ZN shares and rights. As posted earlier, they wanted $39 fee (commission) to exercise my rights on the 100 shares I held there. I have 4 separate acct's with them, been a customer for almost 20 years and the value is substantial. They offered me no discount or offer to waive the fee. I told the guy that $39 for exercising 23 shares is very steep. He replied that the rights are optional and I didn't have to exercise.
As far as how many shares you will get, the ZN PR says they were oversubscribed by roughly double, i.e. $37M were requested from the $18M ZN had offered. This should mean that you will get about 49% of the # of share you requested. Your unspent money will be refunded in short order.
From ZN's PR "The total available subscription of 3.6 million shares, for gross proceeds of $18 million, will be accepted by Zion and amounts for the unfilled oversubscriptions will be refunded as soon as possible. As detailed in the prospectus, oversubscription rights will be allocated pro rata in accordance with the number of basic subscriptions rights exercised. "
RM19 - like you said though, the important thing for ZN (and thusly the shareholders) is for the rights offering to be a success. It indeed was, new $18M in cash to fund continual drilling and completions until that oil is unlocked. Good luck to you!
Penny Pincher Pauline once said "Watch those pennies and the dollars will take care of themselves!" LOL
I am glad I thought this on through and did not follow Rainman's advise on exercising my rights. I let them expire and instead bought another hundred shares at $6.22 on the open market yesterday morning.
With today's announcement of the over-subscription, I would have only netted 11 shares instead of the 23 and would have paid $39 to my broker for these 11 shares. The $5 exercise price would not have netted me enough in savings to offset the commission.
I hope not too many of you exercised their rights offering and now are holding the bag on these with the lower than anticipated shares coming your way and paying the high brokerage fixed cost commission.
At least my anticipated SP pop occurred today now that the rights offering is behind us. Catalyst #2 happens in a week as the workover rig arrives and opens up those first 3 zones for testing.
Good luck to all...
When you drill World record wells like this PR, it's no doubt the SP will follow:
INTEROIL’S ANTELOPE-2 WELL FLOWEDATA WORLD RECORD
RATE OF 705 MMCFD INCLUDING 11,200BBLS PER DAY OF
CONDENSATE
December 1, 2009 --Houston, Texas and Cairns, Australia -InterOil Corporation
(NYSE: IOC) (POMSoX: IOC) today announcedthatits Antelope-2 well flowed at 705million
cubic feet of natural gas per day (MMCFD) including11,200barrels of condensate per day (BCPD)
for a total 129,000barrels of oil equivalent per day (BOEPD). The surface flowing tubing pressure
was1,258 psi through a 6.0inchcapacity choke that was opened to 4 3/8 inches.
The Antelope field confirms Papua New Guineaas a world class gas resource base in close
proximity to the largest and most well developed LNG market in the world.The Antelope-2and
previous wells, have confirmed over 1.2 Bcf/dof productivecapacity.Additionally the condensate
ratio established at the top of the Antelope reservoir further enhancesthe economic viability of the
proposed condensate stripping facility. Updated third party resource estimateswill bereleased
whencompleted.
Two short term potential positives upcoming
1) The rights offering ends Nov. 30, with this hopeful conclusion - any short term manipulation between shorts and market makers to distort the stock price to their liking will end. It will be good to have the uncertainty of this behind us.
2) From the recent drilling report, ZION gave us this great news:
"Today, Wednesday, November 25, 2009, I signed a Contract with the owners of a suitable workover rig.
We intend to carry out completion testing
operations on this well, starting December 6, 2009."
The first completion zone test should not take that long. They have 3 zones in open hole below the cemented casing point that they will test. Should only involve running a packer and tubing in the hole and then swabbing out the mud/heavy water that is in the casing right now. This will allow the formation fluids to enter the well bore and then hopefully flow to surface. They may add some stimulation fluid (acid or chemical) and pump into the zones to induce a little more fluid flow if need be.
I hope we get a completion game plan from ZION next week on their weekly update, would be curious to see how they plan on completing this first open hole portion of the three zones. It is not that common a procedure anymore since most want to isolate / stimulate / test each zone separately. The three zones must be very similar in geophysical properties and in close proximity to each other to attempt what they are doing. I might conclude it's really one zone with two small shale sequences (or similar matrix) providing the isolation.
A nice flow of commercial oil would help to:
1) Give Israel that boost towards hydrocarbon energy independence.
2) Rally the SP and give the shareholders some nice gain on their investment capital.
No effect whatsoever to HMGP. They have sold all their SEK producing leases (which were oil only). This pipeline is only crossing through KS anyway. It takes production from fields in WYO to OHIO and locations back east where prices are better for the product... The pipeline won't benefit any NG producers in KS unless the WYO fields deplete and there is excess pipeline capacity available.
So true, it is so much easier to "talk up" your business plan than actually execute one.
I thought "Rainman" was supposed to be good with numbers, lol.
It is not worth the risk to me to pay $39 in transaction fees for an unknown # of ZN shares. If they get oversubscribed, I might end up only getting 10, 12, 15 shares. I am not paying $39 to buy 10 shares - no flippin' way. (10 shares X $5 + $39 = $89. That's an avg. cost of $8.90 each - capiche?)
Since the current SP is only in the $6.70 range, it is better for me to just buy the shares on the open market and pay the $10.95 commission. This way I at least control the # of shares I actually get rather than play the "rights lotto"...
I agree it would have been a no brainer if I had 1000's of shares or the SP was back in double digits where it was a few short months ago. Not the case though...
Rights offering brokerage rip-off...
just before the October record date cutoff, I purchased 100 shares of ZN in a Fidelity account in hopes of adding to this share total in the $5 share rights offering. My 23 potential shares from the rights offering are showing in my Fidelity account now. I called them up to exercise these into actual shares. All was going well until I inquired about the "fee's or commissions". I had assumed I would either pay nothing or the normal $10.95 fee I usually do for online trading.
Turns out the fee is actually $39.00. This is ridiculous for someone like me with only 23 shares to apply for. I also understand I am not even guaranteed to get the full 23 shares if an over allocation has occurred.
My other account I actively trade with is TD Ameritrade and was given about the same $39 fee recently on another stock I had a rights offering with.
What's everyone's experience with the rights offering fees charged by their brokers?
Hugo - Hemi is (or was) a real o/g company with real assets like leases and production. The two main shareholders that visited the SEK operations for a lease tour were Kels and BigMur.
The problem, as I see it with HMGP, is that the early PR's foretold 1000 to 1500 bbls per month of oil production from the new SEK leases once HEMI worked their 4th generation oil patch EOR on them. It turns out the production only averaged 150 bbls. a month according to the KGS official website of oil sales from their SEK holdings.
This didn't generate enough cash flow to sustain 4 full time employees and HMGP reverted to selling stock and assets to fund the shortage in cash flow. The dilution caused the SP to decline and the typical death spiral for this pinkie began.
From what we kind of know (through member DD as there hasn't been an official HMGP PR in about a year) is that the Co. has laid off all employees except the CEO (Keith Anderson) himself. He has sold all the leases that had production on them and probably most other assets.
We don't know what happened to the money from the asset sales or even if HMGP is still in operation as he was evicted from his DFW office for failure to pay rent according to a shareholders DD.
Makes you want to get back in doesn't it???
Badge - some of my early DD on HMGP and the history timeline of how HEMI and KA emerged from CVI led me to this Edgar document. It seems that some of the first o/g properties KA acquired was through a company called DEK Resources per the attached link info. The WYO asset sale caught many shareholders by surprise when they PR'd it last year. I think it was because there was never a public disclosure that HEMI even owned that lease (at least there wasn't anything ever on the HEMI website)...
I wonder if the Wyoming, Sabine Co. or ND leases were titled in DEK (or some other related party name) to keep it separated from public HEMI corporate visibility.
Full link:
http://sec.edgar-online.com/wastech-inc/10ksb-annual-report-small-business-issuers/2002/04/16/section20.aspx
(Relevant text below):
WASTECH, INC. - Annual Report (Small Business Issuers)
The following is an excerpt from a 10KSB SEC Filing, filed by CORPORATE VISION INC on 4/16/2002.
In 2000, the Board of Directors approved the sale of the Company's working oil and gas interests to DEK Resources, Inc. ("DEK") in exchange for consideration totaling $80,000. The owner of DEK was Keith Anderson, Chief Executive Officer of the Company at the time. The Company believes that the amount paid by Mr. Anderson for the oil and gas interests represented the approximate fair market value of the interests. The Company decided the sell the oil and gas interests to DEK in order to provide funds for operations, and to enable the Company to concentrate on its core operations.
During the year ended December 31, 2000, DEK loaned the Company a total of $28,961. The loans were unsecured, noninterest-bearing, demand loans. Since the loans did not bear interest, the Company believes that the terms of the loans were better than the Company could have borrowed the same amount from an unrelated third party. The Company satisfied the loan by issuing DEK 133,000 shares of common stock.
At December 31, 2000, the Company had an employee receivable from Mr. Anderson of $139,224. The receivable is an unsecured, demand obligation that does not bear interest. As of April 19, 2001, the balance due the Company by Mr. Anderson had been reduced to $59,149. On April 17, 2001, Mr. Anderson resigned as an officer and director of the Company.
Weekly drilling report for Nov. 13:
Partial info:
Drilling operations are proceeding 'according to schedule' and there is nothing adverse to report.
This past week we carried out a 'cement job'. A 'string' (a number of joints that have been screwed together) of thin-walled, steel pipe, known as 'casing', was run into the well. The casing has an outer diameter of at least 2 inches (5 centimeters) less than the wellbore diameter. The casing string is cemented to the sides of the well, so as to stabilize the well and protect the fresh water aquifers.
We cased the well from the surface down to 3,461 feet (1,055 meters) and then waited for the cement to set. We then cut the casing off at the well head and used further cement in order to stabilize the casing at the surface.
The BOP (Blow Out Preventer) is presently being connected so that we can continue to drill deeper.
As of today, Friday, November 13, 2009, we have drilled to a depth of approximately 3,468 feet (1,057 meters) and are 'right on schedule'.
For full release with some nice rig photo's:
http://www.sec.gov/Archives/edgar/data/1131312/000114420409058962/v166206_ex99-1.htm
I will agree with you that any advance in HMGP sp will most likely be from a purely "technical bounce". The momo players could move this up quickly on any type of upward pop. With the long down trend base-lining now, the chartists would be encouraged by any break to the upside.
The fundamentals for this stock, on the other hand, do not look well for a long term play. I would use any rapid sp bounce to sell into the advance. Maybe not all, but at least half if it fits your situation.
Badge - let's take your point a little further... Per KA's own financial statement:
Uncategorized Income (hedging, asset/lease liquidation) 746,231.79
$746,231.79 - $475,000 (WYO lease sale) = $271,231.79
Now, how many here believe KA or Hemi was able to turn a $271K profit from "Hedging" in 2008???? I think this $271K of additional revenue is from other "asset / lease liquidations". There just wasn't a PR for those.
Which of Kels "asset list" does Hemi no longer own??? You sure can't find a listing of Hemi assets on their website.
Holdings
> Barnett Shales lease (along withpassive revenue agreement)
> Sabine Lease (TX)
> Bakken Lease (ND)
> New Mexico Lease
> Remaining SEK lease (High Gas potential?)
If you try to value the remaining SEK Hemi leases, once again look at KA's own financial statement where he shows two SEK leases that were acquired in 2008. How much development has there been to make these worth more than acquisition cost? Zero - no wells were drilled on these leases.
Driskell, Lila Ann Lease (acquired) $987.50
Heckman Lease (acquired) $2,054.25
Well, I like your odds better than mine, good luck to you. I have an avg. cost of about $2.25 a share in this stock. Bought some in the 80 cent range after Mariner, bought some in the high $4's while drilling the 3rd TnT well, bought some in the high 20 cent range after CCAA announcement and everything in between. I just didn't buy enough when it was really low to pull my avg. down.
Since you posted, mind if I ask if the position was "long or short"???
Flatron - I agree with your interpretation in today's NR. Seismic is not 100%, you make many assumptions on interpreting the data and you drill based on what the computer number crunching shows you. Until penetrated by the bit, you never know whats out in front of those drilling cones.
This unanticipated faulting has caused this well to fail to meet their primary goal of testing the Permian (for now). The good news is that they didn't want to keep drilling blindly to get to the Permian because of the 7 zones uphole they want to test. The whole well could have been jeopardized so why chance it???
If any of the 7 zones prove to be commercial, then the well is a success and cash flow can start as hydrocarbons are sold. If these 7 zones don't pan out, then Zion simply re-enters this well and drills down to test that Permian section. It's worth the gamble at that point since your uphole zones are non commercial. Plus they will have had more time to analyze their findings and decide which direction to drill if they go back for the Permian test.
I had a long standing GTC limit buy order in the low 9's that got filled this week. Kind of forgot about it since ZN has been in double digits for quite a while. Just in time to allow me more $5 shares in the upcoming rights offering.
GLTY !!!
Wilshire occurred just before my involvement with buying HEMI so I am not as familiar with them as I would like to be. Have read the PR's but don't know the whole connection.
very interesting indeed PP - lets see how all this plays out in the end...
Does anyone but me find it odd that Rick with WhiteHawk says he has no personal knowledge about the Hemi / RedCloud relationship but yet he was able to drop Keith Anderson's name directly into the situation as the correct person with Hemi to go to...
Hmmmmmmmmmm, me thinks he knows more than he leads on to and was probably forewarned by KA himself that some shareholders may be trying to do some DD and find out the skinny...
I hope you get an answer but I'm not holding out much hope that you will.
Do post the reply here if you can...
B
Howdy Ericus - getting caught up on the Hemi board eh??? Your reply was to my post of over 3 weeks ago... I had to go back and look at what you were agreeing to, LOL...
Live and learn, never again on a pinkie stock for me. I am not a trader and that's the only way to play this kind of stock I am now convinced...
The simple answer is "no", you would not simultaneouly produce gas and oil from "different" formations within the same well. This term is called commingling. This is usually undesired because the different reservoirs have different geophysical characteristics and pressures. You don't want high pressure gas to choke off your oil flow for example.
The advanced answer is that it can be done but the completion is fairly complex and expensive. You must have oversized casing in the hole to allow multiple strings of tubing. Each set of tubing would flow gas or oil from a different formation through isolation production packers set downhole to separate the zones from each other. The flow at the surface is then routed to the appropriate topside equipment to deal with the hydrocarbons being produced.
In reality, many downhole reservoir formations simultaneously produce gas, oil and saltwater. All flows to the surface and then topside equipment separates these out individually where the hydrocarbons are sold off and the salt water is re-injected into an underground separate formation (salt water disposal). The key here is that this all flows from the same reservoir, you are not commingling production from separate formations geologically isolated from each other.
If your well has multiple hydrocarbon formations in it separated vertically, you generally produce the deepest formation first. When it depletes or becomes uneconomical, you plug off this lower zone with a bridge plug, dump some cement on it and then move up hole and perforate your next zone. Repeat the process as needed until you run out of zones to test / produce.
I am a little surprised that they didn't give a new hole depth in today's PR. They should have kicked off from that cement plug to sidetrack well over a week ago.
I guess they are still drilling in very hard matrix and not making much hole. That is confirmed by the PR saying that they are in tight rock (very low porosity).
It was encouraging to see them say they have 7 zones of interest identified thus far from drilling samples and / or log shows. Way to early to get too excited about a commercial find but it's better than them saying they have not had anything of interest found yet...
There is nothing wrong with legal shorting of stock - I do wish they would bring back the uptick rule though to keep potential overly shorted stocks from being routed (bear raid)... When done legally, a shorted stock is borrowed from an actual owners account and is sold as a normal transaction. Your statement still shows you own the stock but the cert. # is actually sold to the new buyer. When the short covers their position, the computers replace your borrowed stock with a new cert. # into your account and you never knew it was gone. If you don't want your Zion shares to be shorted, then take physical delivery of the certs, they can't short them if you have physical possession. When you keep securities in street name at a broker, you usually give them the right to borrow any of your positions w/o your direct knowledge.
All it takes is for some good news on a stock to crush the shorts and turn it into a short covering rally where you could see a stock double in a day. Believe me, when Zion announces they have struck a commercial oil well, those shorts will wish they had never taken that position...
Paulness - you need to educate yourself to the difference between legal shorting of a stock and illegal "naked shorting" of a stock. Big difference both on the legality and the "cause / effect" they play on the underlying security.
I am pretty sure that these figures represent legally shorted shares, this is actually a good thing if you are long the stock. The "shorter" has already sold borrowed shares and must buy back the stock in the future to close out their position. Today's stock price is already adjusted based on their opening sell and the future buy back will help the SP out...
Bottom line - legal shorting is not a problem, naked shorting is...
The Canadian Press - ONLINE EDITION
Canadian Superior Energy caps off turbulent year by electing new board
By: Lauren Krugel, THE CANADIAN PRESS
9/09/2009 7:00 PM | Comments: 0
CALGARY - Canadian Superior Energy Inc. (TSX:SNG) shareholders elected a new board of directors Wednesday, capping off a turbulent year for the Calgary-based oil and gas explorer.
Shareholders also approved a merger agreement between Canadian Superior and Challenger Energy Inc. (TSXV:CHQ), which had been a minority partner in a natural gas development off the coast of Trinidad and Tobago.
The deal was approved by 95.4 per cent of the shares voted.
Palo Alto Investors LLC, which holds 9.3 per cent of Canadian Superior's stock, has been pushing for change at the board level for several months.
Under a settlement inked last month, Canadian Superior, which has been restructuring under creditor protection since March, and Palo Alto Investors agreed on six nominees for the board of directors.
Palo Alto picked Marvin Chronister, Kerry Brittain, James Funk, and William Roach, who is chief executive officer at oilsands firm UTS Energy Corp. (TSX:UTS)
Canadian Superior's management tapped Gregory Turnbull and Richard Watkins, who currently sits on the board of directors.
"These are the kind of people that I, as a shareholder, am happy to see run the company," said Palo Alto's David Anderson in an interview before the meeting.
"We think this can be a great company. It has the potential to be."
Aside from interim chairman Jake Harp, none of the outgoing directors were at the meeting Wednesday.
Chronister, a newly elected director from Houston with 35 years in the oil and gas industry, said the board will begin its work in earnest Thursday, when its first meeting is set to be held.
"I think we need to focus on getting a top rate management team in and filling in the management holes ... and then figuring out how to maximize the assets that we've got for the benefit of the stockholders," he said in an interview after the meeting.
It was just under a year ago that Palo Alto began flagging conflict of interest concerns at Canadian Superior.
Palo Alto's qualms centred around Canadian Superior's then-executive chairman Greg Noval, who had also been a director at Challenger.
Noval stepped down from his director position at Challenger in October of last year, but continued to be a shareholder in both companies.
In a separate battle in February, a third partner in the Trinidad block, U.K.-based BG Group, persuaded an Alberta judge to put Canadian Superior's stake under the control of a receiver.
BG had feared final testing and completion of a well would not be completed, given Challenger's and Canadian Superior's financial problems.
A month later, Challenger and Canadian Superior both filed for protection from creditors under the Companies' Creditors Arrangement Act.
In late April, Noval and chief executive officer Mike Coolen were forced out by Canadian Superior's board of directors.
In May, Canadian Superior sold its 45 per cent stake in the Trinidad field, which is estimated to contain between three and five trillion cubic feet of natural gas, for US$142.5 million to BG Group.
And then in June, Canadian Superior agreed to merge with Challenger in a friendly deal worth $77.8 million.
Following those transactions, Canadian Superior now holds a 25 per cent interest in the Trinidad block.
Palo Alto had questioned the previous management's decision to sell the Trinidad stake, and now Anderson said he's optimistic shareholders will be able to reap the benefits.
"If we didn't see that upside, we would have sold this stock long ago," he said.
"The only reason we've gone through the pain and suffering of the last year is to put in place a team that can actually create that value."
In addition to Trinidad, Canadian Superior also has operations in Western Canada and the East Coast.
Find this article at:
http://www.winnipegfreepress.com/business/breakingnews/Canadian-Superior-Energy-caps-off-turbulent-year-by-electing-new-board.html