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" Not so sure if these current characters are the ones to do it "
Agreed maverick. My hope and to a certain degree my efforts have always been to have a merger with a real silver miner ,the likes of First Majestic , Pan American, Silver Standard,Endeavor or even a real gold miner like New Gold or Iamgold. Some entity that really wants to exploit the riches and build their company .
Even a merger with Revett or Mines Mgmt would have worked out ,despite the fall in silver.We would really have something for the future. Instead we got Rx and Drumlummon worth about -25M from the day of the merger,that's NEGATIVE 25M . Sickening
My only positive note , against my stupid position of (HOLD), is that it won't happen again,somewhere else. A buddy of mine was amazed that I was still a shareholder after all my attempts to sway investors away from the merger.
I really believed that there had to be something about Drumlummon that was not clear and evident from a distance (on the outside ),after I'd realized we lost the vote "73% " not exactly a windfall for the pro merger camp ,but they did win.
I figured the Galena was too good to give up and I still believe it is one of the best silver mines in North America,once properly developed but ....
with no acknowledgement of the merger debacle by any authority,any management or major shareholder it seems to be obvious that the only way we can get our money out of this is by investing more and waiting but...
that might be throwing good money after bad since nothing about the disaster that has almost bankrupted us has ever really been resolved in fact bad deals continue...
Are we still a royalty free company ? I won't phone the company anymore but I'd like to get an answer to that . I believe Blasutti (in order to secure a loan ) gave .05% NSR to private equity. I'm really not sure if that deal went through or it was taken off the table . A scourge ,a blatant insider deal that makes me angry all over again .... Imagine giving NSR to secure a loan that was in fact not necessary and to a larger extent had the merger deal never gone through ,we never would have become involved with private equity which is in my opinion the worst part of small cap investments.
Who really runs this company and for whom ?
The Hecla offer was in my opinion an insult and though I've obviously been proven wrong, as far as value due to silvers decline ,it still remains a benchmark of a minimum value at the time of their offer.
I asked IR at Hecla, at the time, to change their cash offer to an all share offer but they refused to accommodate us. I think that might have swayed the vote ,but I certainly question the validity of both the vote on Hecla and RX . 73% in favour of the merger is very close to being a failed attempt. The ridiculous pay out to RX of (4m,I think) was also a scare tactic set up.
The long term shareholders at US Silver did not want to give up the Galena and with our blinders on , we stayed the course with the RX deal. I am on record as pleading with shareholders to turn the RX deal down. I could never understand the logic in assuming value on the conclusions established by Cormark and Sprott,but their supposed "good name" was too strong . Never heard of a "fairness opinion" done with such obvious related parties,taken as the whole truth . (AND WE LITERALLY PAID FOR IT)
If there was ever a case of experts conning the retail for their own benefit ,this is it and I'm stunned by the fact that the injustice of the merger to the retail shareholders of US Silver has gone unchallenged by authorities.
I agree eward. The company has been ravaged ,but through all the mud ,the Galena is still one of the top silver mines in North America,now and 20 years down the line if the LZ area truly can be exploited for 150-200M oz's or about 5 million plus ,ozs a year .
Had we never had a merger and had a competent custodian of our balance sheet,we likely would be a stock driven down by silver spot but only have 60M shares outstanding and no debt. We would likely of been suited by another major for a buyout in an all share deal. That was my hope and it was a very realistic thought before the merger.
Eric Sprott is no billionaire ,not even remotely close and even if he was , it would not excuse his rigid points of view which have forced his companies other executives to urge retirement from regular business .
I guess he personally , will stick to cheerleading.
Sprott companies were a huge influence on the merger that destroyed the value in US Silver .
. Sprott and their former self ,"Cormark" are a big reason why so many of us have had such enormous losses , with such a fundamentally strong silver mine,known as Galena
It makes no sense unless you can come to the conclusion that companies such as Sprott are no different than Goldman or JP Morgan ,in that they are just as likely to be promoting a stock, as working the back door and making revenues on its failure . Failure, that investment from retail will end up paying for ,part and parcel for accepting their guidance .
The horrific merger between US Silver and RX Gold should go down in history as one of the worst shams ever seemingly ignored by the regulators in Canada and Sprott was right in the thick of it.
I still do not rule out being a part of a class action suit by pre-merger US Silver shareholders against Sprott,Cormark and certain US Silver board of directors. It would take a large shareholder to begin an action where many smaller shareholders (like myself) would gladly join in .
I want another merger, ASAP . Based on mineral value,not financial asset value ,We will do very well. I would hope for a merger with a company that has more diversified assets . Strategic metals perhaps
We need to expand with someone that has cash ,but not enough to get their own asset going ,and private equity would kill their company . ,so..... Galena would be the first priority and the mineral assets of the merged entity would come later. Everybody wins,no dilution for either company . There are bargains out there and many would sell their souls to be attached to our assets,imo
I think Hodgkinson believed we would of been sold long ago and all the exorbitant executive compensation would just be a faint memory,after a sale .
I've never really made a big deal about it ,because I figured the E.Comp. would end just as soon as DEJ properties were gone .If we had a major JV ,with a lot of cash rolling in ,I'd not mind the E.Comp. but we are only barely a producer ,yet to have a profitable quarter,(least in my memory) so...
I think the extravagance ,the overpay,the recklessness of the budget has gone on long enough. We,the retail shareholders can easily control this company and if it is sabotaged ,we can and will sue.
The company could literally be months away from an offer via one of a half dozen possible suitors.
I'm very disappointed in our CEO,because we need never of been in this position but .... so long as the executives do what needs to be done ,(maybe already in the works), this stagnation and now dropping cash value might be a faint memory of its own.
...a follow -up post pertaining to the letter ,also from Yahoo board
This is a good letter. ,There is nothing seriously wrong with our financial ability to balance our budget , ... that a major haircut in executive compensation wouldn't adequately solve. It's not just part of a problem ,it is the problem. Just a quick look at Google Finance shows a few quarters where G&A is almost equal to revenue . IE; ending June of this year we had revenue of just over 2 million for the quarter and 1.86 million in G&A . Quarters prior are even worse. This is not the type of G&A that is acceptable in a development stage company .
I believe in this companies assets (NG is going up). which makes the current financial condition inexcusable. We are on the cusp of a major breakthrough in value and though I admire managements steadfastness in bringing Kokopelli to a state of production after extensive years of permitting problems, I hold to the conclusion that the only reason we are not a dollar stock is because of Mr. Hodgkinsons very
obvious misconception of how executive compensation can work to the benefit of all.
He is playing into the hands of the traders ,by failing for years ,to execute on the crucial need for a balanced budget.
A balanced budget not only raises NAV (financial) but makes our ability to choose,what to sell when to sell and for how much ,far more realistic.
From Yahoo board ,apparently this letter will reach CEO Hodgkinson
email to Craig
As outlined in the 'The Letter' the current situation is unsustainable AND is also unacceptable to shareholders.
In my prior complaints re management salaries and bonuses, you indicated that it would be forwarded to management. If so, NOTHING was done. This anomaly is the crux of the matter and in my opinion the sole reason for loss of faith in the company and subsequent dismal performance in both operational losses and share price in the past year or two.
Such loss of faith means, not only lower PPS but also higher borrowing costs.
There is also, in my opinion, a total lack of respect for shareholders by way of communication and 'greed' when it comes to salaries and bonuses.
In my opinion. there is only one way to salvage the situation and that is for executive management to work for a $1 yr till profitability is achieved. There is precedence for such action in other corporations, and the net result would be an improvement in shareholder confidence and PPS. If indeed executives are also shareholders then this loss of salary would be off-set by an increase in equity.
In any case the alternative is dismal, as the expected performance is insufficient to sustain the high executive salaries and, in any case, result in a total collapse.
Finally, any attempt at a 'reverse split' and equity raise would also be a total failure and do nothing to satisfy the requirements of 'The Letter'
Why shareholders would think this is bad for us ? ,makes no sense at all. I suspect the company might try the RS theory to raise money easier , but if it is done before the books are balanced it could destroy us. I simply cannot fathom them doing that . Balance books by Q2 ,maybe RS by June or later or not at all.
This letter from the AMEX is clearly a good thing if not mismanaged . We have incredible mineral value and the company has proven it can be developed without a lot of cash . Cut the salaries,get rid of high priced help,keep expenses in line with income and go forward proving our assets value by production .Who owns the majority interest of the income from production is irrelevant .
If we balance our books ,are share price rises and we are compliant .If Mr. Hodgkinson really wants to sell or JV our assets in 2014 ,he has a golden opportunity to do just that,starting with major adjustments or dismissal of 2 monster salary-compensation packages .
This is in my opinion great news . The compliance needed means we have to drastically trim our expenses to the point where we do not lose money by Q2 and it says nothing about needing to be at 1 dollar minimum ,in order to keep the listing.
Therefore we have something done in the best financial interests of retail common shareholders. How refreshing !
A share consolidation or as some prefer, reverse split, would do nothing to change our compliance.
Dejour Energy Inc : Dejour Energy Receives Letter from NYSE MKT LLC
11/27/2013 | 04:31pm US/EasternRecommend:
0
Dejour Energy Inc. (NYSE MKT:DEJ) (TSX:DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, announces that on November 21, 2013, the Company was informed by NYSE Regulation that it is not in compliance with three of the NYSE MKT stock exchange's minimum listing requirements. Specifically:
1. Reported stockholders' equity of US$3,974,882 as at September 30, 2013 is less than US$4,000,000 and the Company has net losses in three of its four most recent fiscal years;
2. Reported stockholders' equity of US$3,974,882 as at September 30, 2013 is less than US$6,000,000 and the Company has net losses in its five most recent fiscal years, and
3. The Company has sustained losses which are substantial in relation to its overall operations or its existing financial resources, or its financial condition, has become impaired that it appears questionable, in the opinion of the NYSE MKT, as to whether it will be able to continue operations and/or meet its obligations in the future.
The NYSE MKT has requested the Company submit a plan of compliance ("Plan") by December 23, 2013 addressing how it intends to gain compliance to #1 and #2, above, by May 22, 2015 and to #3, above, by April 4, 2014.
The Company intends to submit a Plan in prescribed form to NYSE MKT prior to the due dates.
I apologise for not remembering the 25M .the posts here are so infrequent . Like the share structure ,the 25M placement is more of a security device ,in my estimation.
In other words , IF we have something that must be done ,the BOD's can do it . IF we were to dilute again to drill a vertical exploration well at the Niobrara level ,I think it could be a game changer so...
However IF we can do it through another "drilling fund " (likely WPX ) ,why not ?
The share consolidation is BS ,unless the AMEX insists,then it is in place for June. We as shareholders should be voicing opinions strenuously to management and IF nothing is done ,vote against present BOD's. Simple as that. The retail holdings of Dejour are in control of the destiny of this company ,IF we choose to be.
I am very willing to let management and directors present their changes to put us on a direct path to prosperity. I understand everyones indecision and apprehension about management ,but I completely agree with the positive sentiment concerning the claims in Colorado. Absolutely incredible.This management did indeed, put together such an envious group of claims . I do not want to cause problems that could derail progress. Any complaints to our BOD's should be respectful and attempt to understand their point of view ,at this juncture. One thing is foresure ,we need to be a pro-active shareholder base. Administration costs MUST go down substantially so we can,with good sentiment .... BUY and HOLD or HOLD ,imo
A drilling fund is simply the financier ,which takes majority control of production but DEJ still owns .(the well ,lease ) What 25M shares ? Have I missed something ?
Management needs a haircut and it looks like that will be a reality. Everytime DEJ dilutes ,it costs management control. They either have to issue themselves options or buy shares . I have no particular good thoughts about rewarding failure but ...
The company needs cash badly and finance always cost, so if management issues options at present prices ,if the price goes up just slightly , we dilute but have cash cheaper than a private placement or bought deal financing .The cost is nothing . If we are headed for where I think we might go ,I don't mind the situation temporarily. Very Temporary ! Not sure what the cash position is ..
I do however agree that management needs to be cut to the bone . Just not necessary to have high priced talent for production that does not necessarily have to be under our supervision.
Changing the classification of the properties is #1.,,,nothing else is as important.
I know the management would like to do as many of these deals as possible. I thought we had something else already planned for Roan Creek . I'd like to see us somehow pay for a seismic examination of North Rangely ,then pending decent results get another drilling fund situation going there. The problem is that there are a lot of claims out there. Generally something like Kokopelli is easy to attract,especially since the 4 wells are producing but the others are not so easy .
Dejour need only attract enough investment to drill in all 5 major properties and i'm sure we would reach the first target of 50 cents,especially if Administration costs come down ,which needs to happen,imo.
My understanding is that they will have a drilling fund pay for the next round of wells . This means we get very little income , however....as I've tried to tell others ; The point of Dejour is to keep our head above water ,while changing the classification of our properties (essentially ...Proving reserves by production)
We have about 200 places for Williams Fork level wells ,so for another company to have majority ownership of production on 4 wells (may be another 7 ,is somewhat trivial)
Not exactly sure how many deep HZ wells at the Niobrara level we could do but think it's 27,so again ,giving up majority ownership in order to prove production in 1 or 2 is again trivial for those that worry about selling off productivity.
HZ wells of course take in a lot more NG and have to be spaced differently than vertical
The incredible mineral value in our properties is not limited to Kokopelli or even Roan Creek.
I seem to remember a lot of interest from retail investors in the Rangely properties . Certainly a lot more speculative (especially the North ),but there is likely OIL ,not just natural gas and NGL's at these properties (more oil in the North ),so I'd be just as happy if Kokopelli was sold or JV'd out so we could concentrate on even more exploration ,with our own funding. Then we get into the dollars,.,unless of course we are acquired ,a likely occurence in my opinion.
Horizontal wells cost about 7M ,in Colorado
New vertical gas wells in South Kokopelli where infrastructure is present will cost about 500,000 each
The previous 4 cost more because infrastructure was not present
A deep Niobrara well in the south would be less cost as a deep Niobrara in the north for the same reasons.
We would not be drilling a horizontal well before first drilling an exploration well which would of course be vertical.
We must drill a well of any type in the north .(likely a vertical exploration well),which will be transformed into a HZ well ,down the line
The south is wide open for more vertical wells at the Williams Fork level and it would also be the cheapest place to drill a deep exploration well at the Niobrara-Mancos level ,which in turn ,as with the north could be transformed at a later date to a HZ well.
All this happening at just one of 5 possible projects
Recent share price is a result of a completely misinformed shareholder base ,with certain situations becoming more exaggerated ,with passing days . Stop relying on Yahoo forum for accurate information. Call the company investor relations.
I'm bullish because I look at the mineral asset value comparatively to the financial net asset value and realize that my only hazard, to profit with this stock ,is time.
This is an insurance policy ,nothing more. they can sell up to 25,000 shares and they could do a share consolidation. Both defensive measures. It tells me something is going to cost more than they bargained for "maybe" and absolutely nothing ,not even more dilution should stand in the way of drilling . This company is floundering because everyone in the neighborhood knows we have great claims and no cash to exploit. They are telling the prospective buyers ,we can hang on .
Bismuth is an excellent replacement for lead .,however lead has it's own niches . I'm not for destroying the lead market but if Bismuth is safer and has more applications,Why not exploit it ?
Fortune Minerals has a Gold-Cobalt- Bismuth deposit with full feasibility completed. If prices of these metals begin to rise that deposit will supply over 3.5 million lbs per year. 70% of the supply currently comes from China.
I know our government would rather use natural gas or nuclear for power plants ,so would I ,Why don't you ?
The fact is Thermal coal is the only coal that's in question ,not metallurgical . Our Thermal coal should be processed into diesel fuel and exported. Our Met. coal is needed everywhere (prices will begin to rise soon ,I hope) and if Anthracite coal ( the best ),can develop a market in Asia for it's unique properties ,then B.C. has a couple huge deposits.Coal has a great mining future in North America.
We have Africans in the Congo burning down magnificent trees ,all for the coal at the roots. This not only destroys the forest but also destroys a home to Mountain Gorillas. We need to start exporting coal everywhere. The people in the Congo need the heat .I think Peabody would be happy to supply them ,Pro Bono.
Us Silver really needs only a rise in silver and a shareholder base that absolutely holds the BOD's accountable. Got to be about the worst shareholders I've ever been involved with . We have great assets ,incredible possibilities and we sit at 50 cents like a first year exploration company with some promise. Gotta be a reason why .
US Silvers lead-silver concentrate is smelted in Trail.B.C. ,owned by Teck. I don't know why that deal would need to be changed . The best news about this company is the LZ (Lead Zone),which is loaded with lead-silver ore. Are you suggesting US Silver should buy a smelter of their own ?
Tell me how many CEO's own more than 5%. I didn't say all insiders ,I said Hodgekinson alone owns 7.75 million shares . I agree he makes too good a living but I happen to know through conversation that both he and Mut Sr. would like to retire . Mut owns 1.7 Million shares and was the key director whom influenced the Kokopelli permit., something that was make or break for this company. Once the permits and PD Reserves are actually producing from both levels of Kokopelli,there is nothing left for Mut. These guys want to sell and they likely have had offers above the current price but far below the asset value.
You were wrong before and you're still wrong . CEO Hodgekinson owns better than 5% of Dejour stock. It use to be more but his percentages have gone down with dilution. 5% is a solid figure for a CEO and he most certainly does want a sale, at the right price.
The secret drilling fund is VERY likely WPX Energy. They own claims on both sides of us and have had great success. They test the waters at Kokopelli making sure before they get into a big deal ,they know it's worth the risk.
I would guess this secret drilling fund will be behind the exploration well into the deep play at Kokopelli.If successful ,WPX will likely make a bid,possibly even before the drilling .Maybe all they want is a permit.
If natural gas goes up,WPX will be pressured into making a quick deal,so I believe the NG prices are our fate for success now or later.
"The future plan is very important, i hope they are not planning on using dej assets and revenue as personal piggy bank for years to come"
Cougar and yourself are right,imo,they are using the small production and multiple financings-options deals to resemble a personal piggy bank interpretation but... I think , they didn't believe this buy out would take this long .
By the time we got liquids going ,liquids tanked. Now with exports for propane increasing ,there is a very real advantage to the development of our properties content ,which is excellent for NGL's.
I don't completely disagree with you cougar but... the cronies take a back seat to Hodgekinson . A sale would give him a really nice retirement package. All he's trying to do is make the net worth of the company as high as it should be ,if reserves are properly valued.
He can only succeed with help from gas prices.In the meantime he and his cronies will make a good living but ultimately they want to sell. They win on both counts,we win on the sale only.
There is no doubt DEJ will eventually sell its assets or merge them into a bigger company ,but natural gas liquids must take off again (to the value of oil) That can happen with an increase in exporting ,which is most definitely taking place.Furthermore the dry gas price must improve. Its all about demand. When the NG demand begins,DEJ story will likely result in a low ball offer ,for starters. (50 cents),then IF there is another interested party the bidding should get up over .80 cents. Longer term ,IF the natural gas revolution is set in motion,we could see 2-3 dollars a share,providing we get permits and success at the deep play.
It's going to get interesting ...but not until the demand is present.
It's a great scam. The management and directors continue to make very obvious bumbling moves ,which cause more need for cash ,which causes financiers involvement,which causes more shares to insiders ,while the company principals continue to reward failure with more shares.
More and more of this company becomes owned by insiders and less by retail ,which is usually fine, if it is bought on the way up ,not the way down,which is the case and the obvious forecast.
The assets are extremely good and grossly undervalued. The objective of the insiders is to gain more control on the cheap . We all should realize that when we lost the merger vote 73% in favour ,we lost our investment.
I agree that US Silver&Gold has joined the ranks of a short term trader stock. Definitely not my choice of investment and not really whats good for the excellent assets of the company.
The Directors, both of US Silver and US Silver&Gold have destroyed one of the best spec mining stocks of the TSX and Amex-OTCQX,imo. The assets cannot outweigh the negative sentiment which has been built by these Directors.
We had some rough times with silver prices (which will likely continue this year) but.... the companies waste of over 25 million and furthering new debt -warrants have made speculation to rise with silver ,not as appealing. In other words,there's a lot of good companies with a more shareholder friendly environment which will outperform USGIF,if and when silver climbs. These guys can't repair the mistrust retail has for companies principal leadership,imo.
I'm in agreement that there is always money to be made short term with a stock like this but the long term sentiment is dead.
eik, The stupidity of the recent financings has made me realize that the insider buying (like Sprott and Heartland)is not at all good. They are likely unofficial advisors to our directors and past dealings prove that retail investors are the last to benefit .Only a huge surge in silver could bring our investment dollars back and the insiders would likely sell into the surge.In other words breaking even for many of the retail is the most likely the goal.
Time after time our debt brought on by the merger has cost us so dearly. You would think they'd be inclined to clear it up. This BS about protecting the balance sheet is better said ,They are protecting their salaries. We could have diluted the same amount as what was paid out in bonus's(warrants), for lending money @ 12% and cleared ourselves of debt. Instead we need more cash flow and the debt still is present and the dilution is already sewn into the share structure.
The retail shareholder base here is pathetic. How many times do we need to get kicked in the head ?
Cougar6 saying ....
Does that preclude a buy-out ... no. But it also does not look like they are working to increase the value of the holdings in order to entice an offer. They are working to increase production, not relative value of the package.
In my opinion ,their game plan is to improve the value of the property. Of course they want revenue ,so, as you've pointed out ,they don't dilute.
the object of someone else paying for drilling etc ... is simply so that only very small amounts of cash are needed but the properties status changes. PUD reserves become Producing PD reserves. This is the company mantra,imo . Show the other players the unequivocal proof that the properties are grossly undervalued ,until the time comes when demand for such properties greatly increases ,then we will have offers.
WPX is the front runner but Bill Barrett,Encana,Williams,Chesapeake are all in the area or want to expand in that area and what holds them back is the same thing that kills our share price .A final realization of the inevitable natural gas demand marketplace ,has not yet proven to be absolute.,but.... the signs are all very enticing.
WPX owns lands all around Dejour claims ,they are the likely "drilling fund",which means they have a stake in DEJ. (shares,warrants etc )
They are just as likely happy to be doing exploration of our claims in the background (without buying us).What needs to happen is one more interested party in Dejour claims . That can and will happen with report of more reserves. That's the whole game here . Producing proven reserves . if another company such as Barrett or Encana decided they were interested in JV on a number of different properties ,I think WPX would quickly make an offer to buy the packages ,possibly the whole company.
We have already begun the processing for permits on Kokopelli deep. The permit to drill 1 exploration (vertical well) would be first in line at a cost of about 3 million. I think WPX is trying to keep their interest as quiet as possible until a permit or a successful exploration well is a reality. The best thing that could happen is another large player with a JV offer.
I'd say if there's production proof a WPX clone (deep well),then the company stock price triples in value .
Investors have to realize, that at this point , assessing value for Dejour is all about proving the production capability of their PUD fields.
Who owns the majority of the first wells is of no consequence to the longer term assessed value of the company's fields ,imo.
We were counting on 1 mmcf per well ,so the results are better than expected .The potential of Kokopelli is proving to be staggering ,especially as it has massive majority controlled by a stock under a buc. The deep play will bounce us over a dollar ,possibly before it is even drilled.I think we might see an offer just as soon as permitting is in place. Since the 4 vertical wells have proved to be environmentally sound with no hitches,I'm told the deep play permitting should go very quickly
It's good to see the long term investors finally have conclusive evidence that will make this an excellent investment. "Know your investment" seems to be working out.
It's not crazy to think of the Colorado properties as part and parcel of a 10 .00 company,I just don't think it will be Dejour. The only reason JV's giving away plenty don't bother management is because their intention is to sell or JV in a big way for guaranteed income. I think they'll sell out.
I can see a realistic bid to purchase Kokopelli and Roan Creek area. Both are prime property in the Piceance Basin where undeveloped land fetches 30,000 an acre. (works out to about 1 dollar a share).
DEJOUR would then have lots of cash to properly develop the Rangely properties on their own .Without a big shot of cash the Rangely properties might as well be sold because I feel they would be capital intensive.
I think it more likely DEJ will be bought and Hodgekinson will retire a winner.All dependent on natural gas prices ,imo.
Fair enough Cougar. I tend to agree that insider buying helps but ... there are only designated times when directors or management can buy .
Using a scenario of a company interested in buying Kokopelli ,the "company" insiders, once given that information , cannot buy . They generally have to make purchases well ahead of offers and not too close to quarterly results. In many instances their own personal finances simply do not allow for purchases which might seem opportunistic. I think ,ALL the company directors and management want to see deals happen and they are also likely to have compensation for deals happening so I think insider buying should not be over stretched to the benefits to common shareholders. Some of DEJ's past directors that were not big buyers are no longer with us.ie;Devine (good riddance)
I found Hodgkinson is up to 7.7 M shares. If he sold the company at around 1.50 ,that would be over 11M . I know he has more capital , but even if he didn't ,it sounds like plenty to retire on . Besides that,when I suggested he wanted to retire ,I was talking about retiring from a position of CEO.I'm sure he will continue to be a director in the industry and definitely an investor.
Cougar6 ,you're last post is riddled with misinformation
CEO Hodgkinson owns 7.2 M shares and COO Blacker who is the highest paid person , an extremely important guy who is far more recent to DEJ management owns 525,000. A couple more long standing Management -Directors Holmes and Mut Sr. own 1.7M shares and Sturrock owns about 650,000,all as of end of 2012. In other words ,the principals of this company own plenty and Hodgkinson has indicated he DOES want to retire and he DOES have a history of selling out to larger companies.
The big wait was PERMITTING in the Piceance Basin near sensitive conservation lands which is also why the company insists on taking their time and doing the exploration safely and effectively.
The management and directors are not allowed to BUY any time they feel the urge. There are rules and regulations to follow.
I never said anything ,especially not the company itself was FOR SALE. What I've tried to imply is DEJ assets ,most importantly right now, Kokopelli will be dealt either for cash or JV but at the insistence of a buyer ,not us. You have to wake up to what's going on in the energy sector.
I would agree that income helps share price. If through small income bases like Woodrush,S.Rangely and now Kokopelli we can cover all operating expenses and dilute no more ,great but ;.... The real point of this company is to showcase the value of the properties and production with all it's data ,does that. Income is just a means to hold the share structure in check ,in the case of Dejour.
Dejour is an exploration company first . Finding value through permitting and production thereby enhancing value of reserves. Reserves are the value.
Similar acreage in the Piceance has sold for 30,000 an acre . No proven production evident. Kokopelli acreage with permits is worth 66M MINIMUM. With classification of the property changing to PD from Undeveloped ,the price goes up . The enhancement of a spectacular deep play ,not known to be economical until the last 2 years ,has the value rising again ,possibly even doubling .
Kokopelli with 1 deep HZ well roughly the same standard as whats around the Piceance should fetch 150M ,imo. So from now until then,imo Dejour might entertain offers of 70-90M and with a deep well completed , over 150M. What's the rest worth ?
Woodrush deep play needs 10M minimum. To properly access value (solid income) from N&S Rangely and Roan Creek ,Dejour needs 50M . Without the cash ,no value is given to the company but with 50M plus ,all of a sudden their remaining properties become a lot more valuable.
I think Kokopelli will be sold before OR after the deep play. As to all the other properties ,I think there could be even more value than Kokopelli but whether this management wants to go for it or retire is anyones guess. In other words ,nobody offers to buy Rangely's or Woodrush because they're waiting for a fire sale. This new production at Kokopelli has, imo scuttled those plans ,for our competition or "suiters".
I'm using figures that are extremely conservative based on whats been sold in the region over the last few years. Natural Gas ascension will likely change to the upside ,over the next 2 years . DEJ shareholders deserve a 1 dollar share price this year and I think that's a very real possibility.
The next JV will be just 1 HZ (Kokopelli) Deep Mancos well ,imo.
The production deals in themselves are not particularly good for the company. They will recieve likely the same sort of royalty that the 4 Williams Fork wells will bring.
By years end if DEJ has income (albeit quite small) from Kokopelli shallow and deep ,then the success has been complete . It's about Proving Production,not income . Even if production is grossly in favour of the drilling fund ,it has created a FOR SALE sign that could read like this;
2200 acres of partially Proven Developed Reserves with permitting in place ,currently producing natural gas and NGL's on only approx. 2% of total Williams Fork Level and about 4% of Mancos level. Present production has tied in to a local pipeline ,which is eager to accept more.
TURNKEY Dry and Wet gas operation surrounded by major players.
Only 2 of the 4 wells are in production,so I think there is more news on that front. The goal is to prove 4 wells at 1mmcf/day. We are 3/4's of the way there.
It sets up a couple interesting propositions . We have 10 acre spacing per well on 2200 acres at Williams fork level. We can continue to farm out most of that and save profits to drill our own 1 of 27 deep Hz mancos wells OR farm out a mancos well taking in small profits similar to the 4 verticals . This would be the route if our intent is to sell out and I believe that's where we are headed.
Proof of good production at Williams Fork level already hooked in to the Williams pipeline has been accomplished. If we prove 1 Hz well at Mancos level,the Kokopelli property alone is worth multiples of the market cap presently . Major producers imo want one of 2 scenarios . Buy it for a song undeveloped or buy it for the value it really has with proof. A turnkey operation. We need to complete a permit for a deep well ,find the funding and complete the final step to market Kokopelli.
I still believe we might come across an offer to buy Kokopelli outright before these final stages are completed. Otherwise,a JV for the entire project will likely wait until solid production of the deep is complete.
The RS is not assured. If not necessary ,it will not be used.(or possibly at just 1-3). Since our objective is to have a substantial increase in institutional investment,we must have AMEX listing . There are stocks listed on the AMEX that are under no threat from the exchange (at this point) ,of delisting . One in particular I know of is around 8 cents.
There is a fantastic loss to many resource equities that simply has not yet recovered but I believe the exchanges are positive towards a sharp rebound. Dejour is likely included in that scenario. Natural gas is a huge resource of the future and it's ascension is definite from most experts I've read.
Ultimately ,(for investment purpose)the share structure at DEJ is irrelevant ,imo . The companies assets are either going to be dealt completely (where share structure is better to be left alone) or dealt a JV (where for the good of shareholders we might be better getting under 100M).
Usually a 15% loss (right away),but if the assets are very good and the commodity is on an upturn the lower post split share price will either not exist or not be low for very long . IMO.IME, GL
The company is strictly adhering to ALL government environmental procedures. They are very careful not to upset the good relationship they have built these last few years.If it takes a little more time ,so be it.
A permit is needed for a deep Kokopelli well. If DEJ can be a minority owner in a well that can on average produce 6 mmcf a day,(with gas on the rise),this stock will never look back. A single permit will rocket the stock. We have 100% rights to Kokopelli Mancos -Niobrara and could drill up to 27 wells. Minority ownership in 1 well this year is worth getting permits for another 26 for the coming years. We would likely look for a blockbuster deal at that juncture.
The company is looking better every day. No better natural gas spec stock out there.