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Whoever responded to my post a while ago, would you please send me a private message with your response since the posts were deleted. I did not get a chance to read what you posted back to me?
I was just trying to figure out how much he REALLY has on the line here. It is totally different when "Their whole life is in a company" that they run. When they "OWN or RUN" the company they can siphon funds through salaries, trips, bonuses, options payouts, and other goodies that go to draining the company's equity and consequently, decreases shareholder equity - therein decreasing shareholder value and lowering share price. They really don't give a care that much if share price is dropping as long as they are siphoning funds into their pockets.
However, If they own say 10 or 20% of the actual SHARES of the company, (and these shares are not counterbalanced with them having numerous options to make up the losses they incur from any depreciation of share price), as share price gets destroyed, the owners of the company feel the pain also and are much more likely to be proactive and protective of that share price.
I'm just thinking that by the way they have allowed this share price to go down without being proactive at stopping this dumpage, they very likely do not own a very high percentage of the OS. I would guess that insider ownership is rather low here - I was hoping someone could prove me wrong.
Registered shares do not necessarily mean the insiders of the company own them - they could be registered shares from past dealings in which shares were used for the deal but are registered for a time frame.
By insiders I mean owners or CEO, and CFO, etc.. And even some other members of the board, but they have a bit less control to siphon funds than the actual owners and chief officers.
Does anyone know how many shares Hoffman and other insiders own?
Seems like the MMs are a bit perplexed today. Looks like they are not quite sure what to do.
This long pause is very interesting. Frequently after a pause such as this, there is a large number of trades once it starts trading actively again. Large enough trades to push the share price markedly one way or the other.
I am hoping that they are going over their book of orders trying to fill a bunch of buys that they are not showing, and once they get it figured out, we start to see a GREAT upward push right through those heavy asks showing on Level II. I know they did not display my bid of over 12,000 shares when I bought at .44 earlier. They just let it sit there for almost 5 minutes, not displaying it, and not filling it.
I'm seeing over 90,000 shares for sale up through .50. It would be great to eat through them in one fell swoop.
Maybe Peter is finally getting a handle on this. One can hope!
Well, I told you people that when I went short, the trend was sure to turn around. I'm not certain this is in fact a turn-around, but I got uncomfortable enough that the downtrend was slowing that I decided to cover and go long again. I am one of those buys at .44 also (at 11:05).
That is what I have been wondering - illegal, yes. But do not know the specifics. Will chat later, have to go to a funeral.
I'm not so sure about RS with only 6 million shares, but maybe.
I do think you are right on target about "The pump-dump being done by speculators instead of the company itself seems logical." That would explain how Peter can respond that the COMPANY has not paid anyone to promote.
However, I don't think it is "speculators" but rather the people paying the promoters for the P&D is most likely the people who had all those shares from debt deals from years ago that wanted to get out with a profit finally. Those people who were stuck in the stock with millions of shares to dump have no problem paying to promote their "investment" so that they can get out of their bags at a profit while they suck in all the less-experienced and less-well-connected new bag holders (AKA Us).
It just makes no sense that it NEVER ends. I'm convinced that they have to be out of shares now. Peter told me the conversions were complete and he stopped any more conversions, but the selling continues - something else BAD is going on and Peter cannot stop it.
IMHO
WOW!!!!!!
Down 10% EVERY day is soooo telling.
Amazing that the company does not do something proactive. They must know what the negative is that is giving the shorts soooooo much fuel to continue shorting this thing to the tune of 10% down every day - VERY nice profits for the shorts, and the company does not do a thing about it.
EDGX and CINN have unlimited shares to sell and they do not seem to care if it is .45 or .48 or .35 or even that well touted .10! Those two diluting MMs for some reason have a continual supply that they are more than happy to dump ad nauseum. I am starting to get very worried that we are not getting the full story. These posters who are telling us to beware are being proven to be the correct ones day after day. I do not think I am ready to sit around and wait for the announcement of whatever horrible news they have.
I am going to start shorting because that is the winning trade here. Now, here is your assurance: The minute I place my short trade, this share price will rise and not turn back, but I am done with being a loyal long. The company is doing absolutely NOTHING to correct this issue, and I have to suspect that they do nothing because they KNOW there is a good reason for the share price to be dropping - they just do not want to let us in on it, YET.
Something does not seem right with those numbers. When I talked with Peter yesterday, we discussed the OS and he confirmed to me that it was 6.4 million. If it is truly 7.96 million, that has me VERY concerned!!!!
From the conversation with Peter, either he is going to be rather upset that there have been even more conversions when he thought he had gotten that totally stopped, or he pulled the wool over my eyes.
IF the OS has yet again increased by another 1.5 million shares, that would give a rather depressing explanation of how and why this share price has been pushed down so continually. He has got to get the conversions of these shares under control.!!!
Ok, just got off the phone with Mr. Hoffman. I am so much more at ease, he really seems to be totally invested in making this company a great success. The share price right now in no way represents the value of this company.
I was completely wrong about my figuring regarding the Big Jake deal. The extremely significant point that Peter made with me was that this deal is not going to be linked IN ANY WAY to the price that shares are trading at at the time the deal closes. The deal is going to be structured with the accountants looking at the pro-forma adjusted book value of the company at the time of closing, NOT the share price. This lays all my concerns about this "MMs holding the share price down for the deal" to rest. We are investing in a company that has great plans for growth and a value that will be reflected better in the share price as soon as they can get the people shorting this thing under control.
I hope this helps to rectify my posts that were to the contrary.
WOW!!! I just called and a lady answered the phone. Said she would try to have Peter call me back in a couple of hours. I hope we connect. I'll fill you in on the conversation, IF he gets back with me. I cannot believe I finally got an answer on the phone.
"restricted for some time"
That would be another very valuable piece of information for anyone really wanting to invest in SAPX instead of trade it. Is this time going to be 1 year, 2 years, 5 years or more. I would gues, somewhere around 2 years.
At that point, you can bet they will get converted as soon as another good run occurs.
OK, if that is what you want, IMHO. I understand where you are coming from.
But, if you talk to him again, I would love to hear how he clarifies anything that is left out of the PR in Aug that announced the BJM deal.
I'm hoping that maybe Mon, we get news that the deal has closed and they will then release the specifics of the premium amount and what date or date range they used for the closing prices for the calculations.
Sitting tight until then, because I think share price appreciation starts once the deal closes.
Good Luck
Call it what you like. Just the mechanics of working a deal in the markets of publicly traded companies. You don't understand what the wording in a deal means (or what is artfully left out until it is finalized) you will pay the price with those blindly led to slaughter.
Honda, I hear your frustration, but I realluy do believe you are off base. Yes, 575 million may have been traded, but people and MMs are buying and selling constantly, and yes there is shorting and naked shorting that has added to this volume. Does not mean that there are 575 million shares out there.
I think you need to understand a little better about how companies get money for their deals and also understand that it is very likely that they will work very hard, (successfully, I might add), to get this share price up over $1 again once this deal with BJM is finalized.
All these MMs? They only have to be working with one or two, just as you or I have one or two brokers that we buy and sell our shares with. You know the symbols of some of the MMs known to be common when deals are going on or dilution is occurring, like MAXM and EDGX and NITE. Others have been posted in previous messages, but the company only works with whichever one or two MM is the firm that that they are working the deal through. These MMs are the ones that direct the price flows because they know how the deal is being structured.
I find it hard to believe you would be unfamiliar with this. I know you must have heard "trade with the flow" and "don't fight the tape" before.
Tell me, if you were the one making this deal, which would you prefer to get in the deal? 5,681,818 convertible preferred shares for your $5 million or 7,575,757 convertible preferred shares for your $5 million?
I think you would make sure the MMs worked hard to keep the price down so you could get closer to the 7 or 8 million shares issued to you, Yes?
The one HUGE issue that no one on here seems to want to notice is this statement from the PR released on 8-23-11.
"an agreement for the acquisition of all of the capital sock of Big Jake Music ("BJM"), ... , for $5,000,000 of convertible preferred stock, convertible into common stock at a premium to the market price at closing, and which is not subject to conversion for agreed periods of time."
I am almost certain this is NOW (since the convertible debt shares at .68 and .50 have now been converted and immediately sold into the market as of mid August) the continual drag on the share price. This will continue to drag the share price down UNTIL THE DEAL CLOSES!!!!!
THINK PEOPLE; they are working a deal as we sit here, that will decide how many connvertible preferred shares will be given to make up the $5,000,000 in this deal. If they can keep the stock price down, the more shares they will get. This stock will not rise appreciably in share price UNTIL this deal is closed.
Say they make a deal for $5mil in shares at a 10% premium to the closing price tomorrow. If they allow the price go up to .80, the deal will give BJM shares as such: .88 x 5,681,818 convertible preferred shares issued = $5,000,000.
However, if they keep the share price at .6, then the deal will be calculated at a 10% premium making it .66 per share. So, if they keep the price this low, they will get 7,575,757 convertible preferred shares issued to them in the deal: .66 x 7,575,757 Conv Pref shares issued = $5,000,000.
The MMs are being paid to keep this share price as low as possible until the deal closes so that BJM gets the most convertible shares for its $5mil payment. Heaven forbid that they work on bringing it down even lower so that they get even more convertible preferred shares issued to them.
Not only is this killing the share price now to get the most shares for them, but in a year or so when they are allowed to convert, the dilution will be another HUGE killer, just like these CDs we just got through having to deal with. This is why the OS count needed to be set up to 25,000,000; so that they will have the leaway to get this deal done with ease to issue as many convertible shares as needed.
I wish one of you who communicate with Peter or Jake would address this issue with them. I tried calling about ten times last week and I cannot get anyone to pick up the phone.
Thanks for the charts, esp the 60 min one.
DEJ: Earnings Aug 12, 2011
From Various Financial sources including their filings: Basic OS: 121,391,000 ... 121.19Million ... Diluted OS - N/A
TTM as of 3/31/2011
.......................Total*....................per Share**
Revenues ...........$8,476...................... NA
Income from.......$-5,496......................NA
Continuing Operations
EBIT.................$-5,133..................... NA
Ebitda....................$329 NA
Net Income $-5,496 NA
Cash Flow from Cont. Ops $1,785 NA
Free Cash Flow $1,785 NA
Cash $4,489 NA
Long-Term Debt $0 NA
Book Value $22,004 NA
Enterprise Value $40,123 NA
Market Capitalization $39,986 NA
Pasted from <http://www.smartmoney.com/quote/DEJ/?story=keyStatistics&symbol=DEJ&hpadref=1>
*Figures in thousands
**Based on most recent share count
Cash and Cash equivalents: $1,834,000
accounts receivable of: $1,175,000
June 30, 2011 Dec 31, 2010
Assets:
Cash and cash equivalents 1,834,000 4,758,000
Other current assets 1,232,000 781,000
Exploration and evaluation assets 10,349,000 10,257,000
Property, plant and equipment 17,552,000 14,175,000
Other non-current assets 442,000 442,000
Total assets 31,409,000 30,413,000
Liabilities and shareholders’ equity:
Bridge loan 4,300,000 4,800,000
Accounts payable and accrued liabilities 3,345,000 2,909,000
Warrant liability 1,535,000 1,181,000
Other long-term liabilities 870,000 738,000
Shareholders’ equity 21,359,000 20,785,000
Total liabilities and shareholders’equity
31,409,000 30,413,000
Pasted from <http://finance.yahoo.com/news/Dejour-Reports-15-Rise-in-bw-402009149.html?x=0&.v=1>
Adjusted EBITDA
Q2 2011 Q1 2011 Q2 2010
$ $ $
EBITDA 591,000 (1,305,000) 1,209,000
Adjustments:
Non-cash stock-based compensation
210,000 189,000 225,000
Unrealized financial instrument loss
- 40,000 -
Change in fair value of warrant liability
(795,000) 874,000 (626,000)
Adjusted EBITDA 6,000 (202,000) 808,000
Adjusted EBITDA is a non-GAAP measure and excludes certain items that management believes affect the comparability of operating results. Items excluded generally are non-cash items, one-time items or items whose timing or amount cannot be reasonably estimated.
Revenue
In Q2 2011, the Company recorded $1,816,000 in gross oil and natural gas sales before royalty, as compared to $1,584,000 in Q1 2011 and $2,676,000 in Q2 2010. In 2011 Q2 gas sales were suspended for approximately seven weeks, due to major maintenance at the MacMahon gas processing plant where the company delivers production for processing prior to delivering to the gas sales pipeline. Gas production resumed during the third week of July 2011.
Oil production in April and May averaged 150 BOPD as we continued to operate under pre-waterflood response production limits imposed by the Oil and Gas Conservation Commission of British Columbia. In June 2011, average gross oil production increased to 430 BOPD.
Overcoming suspension of gas sales during Q2 2011, the Company increased gross revenues by approximately 15% from Q1 2011.
Operating Netbacks
On a per BOE basis, operating netbacks for Q2 2011 increased to $38.11 per BOE, as compared to $24.08 for Q1 2011 and $26.87 per BOE for Q2 2010, due to a number of factors, including the Company’s production mix being more heavily weighted towards oil in Q2 2011, higher oil prices, and the temporary suspension of gas sales for seven weeks during the quarter.
Operating netbacks for Q2 2011 was $997,000, as compared to $840,000 for Q1 2011 and $1,465,000 for Q2 2010.
Liquidity and Capital Resources
Cash Balance
The Company had cash and cash equivalents of $1,834,000 as at June 30, 2011. In addition to the cash balance, the Company also had accounts receivable of $1,175,000, most of which related to June 2011 oil and gas sales and had been received subsequent to June 30, 2011.
Bank Line of Credit and Bridge Loan Financing
In March 2010, the Company negotiated a credit facility for a bridge loan of up to $5,000,000. This facility is secured by a first floating charge over all assets of DEAL (the Cdn. subsidiary of Dejour Energy Inc.), bears interest at 12% per annum, plus certain fees. In April 2011, the company extended the credit facility to October 31, 2011.
Subsequent to June 30, 2011, the Company signed a Commitment Letter with a Canadian bank for a $7 million revolving operating demand loan to refinance the $4,200,000 bridge loan balance and to provide additional funds for investment. The operating loan is at an interest rate of Prime + 1% (total 4% p.a. currently).
About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America’s Piceance Basin (107,000 net acres) and Peace River Arch regions (15,000 net acres). Dejour’s seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange Amex (NYSE AMEX: DEJ) and Toronto Stock Exchange (TSX:DEJ.to - News).
Non-GAAP Measures: This news release contains references to non-GAAP measures as follows:
Operating Cash Flow is a non-GAAP measure defined as net cash provided by operating activities before changes in assets and liabilities.
Operating Netback is a non-GAAP measure defined as revenues less royalties and operating and transportation expenses.
EBITDA is a non-GAAP measure defined as net income (loss) before income tax expense, interest expense and finance fee, and amortization, depletion and accretion.
Adjusted EBITDA excludes certain items that management believes affect the comparability of operating results. Items excluded generally are non-cash items, one-time items or items whose timing or amount cannot be reasonably estimated.
Pasted from <http://finance.yahoo.com/news/Dejour-Reports-15-Rise-in-bw-402009149.html?x=0&.v=1>
This from their pr when they announced the line of credit from the Canadian bank:
"We are very pleased that Dejour now has the confidence of the Canadian banking industry. With sustained production currently being
evidenced at the Company's 75% owned and operated Woodrush oil/gas facility, Dejour can now begin to effectively lever these assets as a compliment to increasing cash flows for the development of its other key properties at a low borrowing cost"
DEJ info - a VERY long post:
July 13, 2011: Noverra Research initiat'd with intrinsic value (tgt) of $1.25: for 2011
-Directors/Insiders owning approx 20% (not including the +/- 10% owned by Brownstone)
-price target of $1.25 is ONLY based on Woodrush and Gibson Gulch - ZERO value has been place on the 100K+ additional acres (like South Rangely,
- $51M+ tax loss carry forward
July 29, 2011:
currently are in the public comment phase for Dejour's Master Development Plan at Gibson Gulch
Dejour has a 72% working interest in this 2,200 acre project which is ideally situated for exploitation of the prolific Williams Fork Formation and in the future the underlying Mancos shale. The Williams Companies, Inc. and Bill Barrett Corporation (BBG) are developing and producing on adjacent acreage to the east, west and north of the Company’s acreage.
BBG = Mkt Cap of $2.3B,& Wells Fargo currently gives it overweight
Zacks: $1 tgt: In the case of Dejour, the majority of proven reserves are undeveloped ($83 million of the $108 million). However, these PUDs are within or adjacent to a known producing gas field. In addition, Williams Companies is extending a pipeline from its Grand Valley gathering system to the Kokopelli Field, where Dejour’s PUDs are located. This both reduces most of the uncertainties related to the PUDs and also provides an efficient method to transport Dejour’s natural gas into a large-scale, high-volume distribution system.
We expect a positive valuation increment in the marketplace as PUDs become PDs. When the uncertainties associated with PUDs abate, the discount to NAV that pertains to the PUDs at Gibson Gulch will be reduced or be entirely eliminated. As the PUDs become producing wells in the first quarter of 2012, the marketplace may not only eliminate the discount to NAV of those 8 wells, but also reduce or eliminate the discount related to a portion or all of the other 212 PUDs located at Gibson Gulch.
As the certainty of the value of the PUDs increases, we expect the valuation of Dejour’s stock to approach Net Asset Value (NAV). Dejour’s NAV is estimated to be $125 million ($1.03 per share).
Dejour Energy Inc. Secures Prime + 1% Bank Facility 4-Aug-11 08:09 am
Binding Term Sheet for CAD$7.0 Million with Canadian Chartered Bank 08/04/11
Canadian chartered bank for an initial CAD $7.0 million revolving credit facility at a bank rate of prime + 1%.
Currently, that is 4% per annum.
This loan will be utilized to retire the Company’s existing mezzanine facility of $4.3 million with its Alberta-based lender as well as provide low cost working capital to expand the Company’s reserve base.
(This was a bridge loan that they had been utilizing that was at a rate of 12%)
"We are very pleased that Dejour now has the confidence of the Canadian banking industry. With sustained production currently being evidenced at the Company's 75% owned and operated Woodrush oil/gas facility, Dejour can now begin to effectively lever these assets as a compliment to increasing cash flows for the development of its other key properties at a low borrowing cost", states Dejour CEO Robert L Hodgkinson.
From Message board: Not only has DEJ management re-financed the entire amount, but has done so in a manner that saves approx 8% per year (about $320K/year in interest) as well has this secured to ONLY Woodrush. Also to put other fears at rest, they have secured an additional $3M to use to start to cover costs associated with starting up Gibson Gulch - WITHOUT DILUTION!!!! Woodrush was alone the collateral.
The prior financing arrangement pretty much tied management's hands as their entire holdings were used as collateral and they required the express consent of the financier's for any potential JV, sale, or other action to be taken in respect to the acres.
Another respectable poster posted: From 12% to 4% saves the company 344,000 a year. Money that can go to improving the bottom line in production or more exploration which if improved should make the company profitable. The big moves in S. Rangley and Gibson Gulch will require big financing. Big Canadian Banks are entering resource financing in the U.S. and South America if the deal is solid, so I think this says a lot for the image Dejour is developing. Plain and simple ,the assets are being noticed.
And another poster regarding drilling potential:
DEJ GG details 9-Aug-11 09:41 pm Timepassest C
I found a news article from postindependent.com that adds some details to gibson gulch...need I say drill baby drill...
goodies:
Dejour Energy (USA) Corp. wants to drill up to 68 new wells from four new well pads about three miles south of New Castle, in and around the Garfield Creek State Wildlife Area.
Most of mineral rights involved are federally owned and located beneath the state-owned wildlife area, according to David Boyd, public affairs specialist for the U.S. Bureau of Land Management.
Boyd said the federal rights under the state-owned land mostly carry “no surface occupancy” (or NSO) stipulations, meaning the drillers cannot disturb the surface without a special surface-use agreement with the Colorado Division of Parks and Wildlife.
One lease, which inadvertently did not carry the NSO stipulation when it was issued, currently is the subject of a legal dispute, Boyd said.
In addition to negotiating surface-use agreements for all the leases involved, Dejour must negotiate a detailed wildlife mitigation agreement with the state. The mitigation agreement is meant to prevent harm to the herds of deer and elk that use the area for winter range.
If Dejour obtains the two types of agreements for the leases, Boyd said, the BLM will agree to lift the NSO stipulations.
Dejour's plans include construction of one mile of new access roads in the area, along with 1.25 miles of natural gas and water pipelines, according to the BLM. Dejour's pipelines would connect to an existing gathering line owned by Williams Production RMT, which also is drilling in the area.
Earnings 12-Aug-11 08:11 am
Looks pretty good
Gross Revenue 1,816,000
Net loss (189,000)
Net loss per share (0.002)
Operating netback 997,000
EBITDA 591,000
Adjusted EBITDA 6,000
Dejour Reports 15% Rise in Sequential Quarterly Revenue
Woodrush Waterflood Response Triples Oil Production between May and June. Additional Oil Production Increases Projected for Q3 and Q4
Q2 2011 Key Achievements
During the quarter, the Company achieved the following major objectives and also made significant progress on key strategic initiatives:
• Increased gross revenue by 15% from Q1 2011
• Generated a positive Adjusted EBITDA for the quarter
• Increased oil production by 37 %, Q2 over Q1, as the Halfway pool began to show good response to the water injection. Oil production averaged more than 400 BOPD in June, up from 131 BOPD in May.
• Received a mid-year updated reserve evaluation report on its Woodrush oil pool valuing the PV-10 proved reserves at $25 million, with proved and probable reserves valued at $42 million net to Dejour’s 75% W.I. The reserve evaluation bears an effective date of June 30, 2011 and was conducted by an independent firm, AJM Petroleum Consultants (“AJM”) of Calgary, Alberta, a qualified reserve evaluator.
• Extended an existing bridge loan credit facility to October 31, 2011. Subsequent to June 30, 2011, the Company signed a Commitment Letter with a Canadian bank for a $7 million revolving operating demand loan to refinance the bridge loan and to provide funds for general corporate purposes. The operating loan is at an interest rate of Prime + 1% (total 4% p.a. currently).
• Completed the drilling of a test well at South Rangely. The test well was drilled to a depth of 3863' and encountered approximately 90 feet of hydrocarbon bearing siltstone in the Lower Mancos “C" sands. After a thorough review of the well data the well will be completed, fractured and flow tested in Q3 to determine the commercial potential of the Lower Mancos “C” Sand in this area.
I was concerned when I saw that gas sales were very low this past qtr but here was the reason:
Revenue
In Q2 2011, the Company recorded $1,816,000 in gross oil and natural gas sales before royalty, as compared to $1,584,000 in Q1 2011 and $2,676,000 in Q2 2010.
In 2011 Q2 gas sales were suspended for approximately seven weeks, due to major maintenance at the MacMahon gas processing plant where the company delivers production for processing prior to delivering to the gas sales pipeline. Gas production resumed during the third week of July 2011.
It would have been a lot better if not for the issue at MacMahon Processing plant.
For all intents and purposes, they have pretty much broke even this past quarter and are on track for a profit with the next report.
From VERY respected poster:
Q3 = Profitability
Considering the increase in Woodrush production alone from Q1 to Q2 and the fact that production really only started to increase in June (last month of Q2) it is very conservative to estimate a profit being reported in Q3 (report around Nov 15).
Production has increased at Woodrush to over 400 bopd (not including gas, only oil) as of June.
Carry this amount only forward (again not including gas sales and considering that it is only 75% NET to DEJ), it is safe to estimate production of 300 bopd NET to DEJ for Q3.
Let's be conservative again and project they only get $80/barrel all through Q3.
300 barrels/day x 90 days x $80 = gross revs of $2.1M (again NOT including gas).
Again, this is ONLY from Woodrush. Nothing from Gibson Gulch, Rangely or the 100K+ additional acres.
Can't see how we are NOT going to see huge increases in share price going forward no matter what happens with the general market.
And another respectable poster:
Keep an eye on BBG, DEJ's neighbor. Any kind of JV to accelerate drilling would be huge for the stock. That's the model. Downside seems limited.
Another post for some perspective of another related small O&G company:
SSN was trading at 0.30 for years and did a stock offering at 0.60 (diluted the shareholders). And then the stock jumped to $3!!!!!
DEJ is trading at 0.30 for years and fixed a sublime financing without dilution and has to make its jump to $3.
Zax comments on the master plan... 29-Jul-11 04:23 pm
Steven Ralston, CFA
Dejour (DEJ - Analyst Report) filed a Master Development Plan with the Bureau of Land Management (BLM) for up to 68 wells from four new well pads on its Gibson Gulch properties in Colorado.
The acreage is in close proximity to the producing properties (some within one mile) in the Kokopelli Field owned by Bill Barrett Corporation (BBG:NYSE). Interestingly, Bill Barrett filed its second Master Development Plan (Gibson Gulch II) on July 10th for sites immediately adjacent to Dejour’s proposed well sites.
The similarity and close propinquity of the Master Development Plans bodes well for a timely approval process for both projects.
Thereafter, Dejour should be able to secure permits and complete the financing for the project. In the July 11th press release, the company announced that it was actively involved in discussions to secure debt financing for Gibson Gulch project. Dejour has received multiple offers to finance the debt.
Dejour’s management plans to drill 16 natural gas wells per year into the Williams Fork structure starting in the fourth quarter of 2011. Initially, we expect two-to-three wells to be drilled in 2011 so that the group can be economically fracked together. Dejour plans to take advantage of the new extension of the Williams pipeline from its Grand Valley gathering system to the Kokopelli Field. This new Kokopelli Field gathering system, based on the same nodal model, will provide an efficient method to transport Dejour’s natural gas into a large-scale, high-volume distribution system. Dejour’s production from Gibson Gulch is expected to commence in the first quarter of 2012.
Message board remark:
After financing these initial wells with non-equity funding, management expects that the remaining wells of the 60-plus planned in the drilling program will become self-funding in 2014.
Well, they did a good financing and from now on they are generating cash!
Hey my full charts are back. I'll start posting charts here again now that you can see the whole thing again. Yea!!!!!
Hey Scov!!
I was wondering about you around Dec 30 because I had not received your usual Christmas note. I was so glad to see this New Year's wish. I hope you have a great and prosperous new year! I hope your trading has been going well. I suspect it has, because you seem to be one smart, motivated cookie, and a very personable guy to top it off. Thanks for staying in touch every few months.
Things are going pretty well so far here. I have not found any pots of gold yet, (still frustrated that I sold wayyyyyy tooooo soon on DTG - that was one hell of a pot of gold, LOL) but I am doing a touch better than the treading of water I was doing a couple of years back. I'm hoping to get a new computer soon to have some more powerful tools. Still, my charts are my basic grounds for my trading decisions. I love the charts!!!