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I must confess I have been trying all morning to get in at .0065 and .0066 but they will have none of it.
I agree. To ignore a chart is to ignore a 100% accurate record of how the stock behaves under given conditions. The hard part is knowing what ALL those conditions were...LOL. But don't get me wrong, I follow charts with great interest.
My two cents on the charting. Charts and graphs do not tell you what will happen. They tell you with 100% accuracy what HAS happened. They are great prediction tools with large cap companies who's share count and dynamics aren't changing. With a company like WRNW I personally think one needs to take charts with a grain of salt. The things that caused the chart to form like it has are not likely to be there again in exactly the same way. 504 selling, shorting,O/S, Float, etc. will not be the same day in and day out. About the best I can do with a chart for WRNW is see that it obviously is going up. That observation coupled with the info from individuals we get on the board and info gathered about O&G in N.E. Oklahoma, etc. let us take a best guess as to where this may go. My personal belief about small start ups like this is that two things weigh much heavier than charting. First is management's integrity and sincerity. Second is assets. A bank will not accept a chart of a pink sheet company as tangible collateral. They will accept hard assets ( leases, equipment, income, etc.)
So for what it is worth, in my humble opinion, I think the great value in WRNW is in the fact that a proven M&A man is at the helm of a company with real assets in a region where O&G plays are at a beginning stage. I think in time the chart will reflect that.
jc
Northeast Oklahoma O&G play in early stages of development:
Coalbed Methane Potential and Activity of the Western Interior Basin*
By
Steven Tedesco1
Search and Discovery Article #10059 (2004)
*Adapted from “extended abstract” for presentation at the AAPG Annual Meeting, Salt Lake City, Utah, May 11-14, 2003.
Two other articles on coalbed methane accompany this presentation; they are: Frontier Areas for Coalbed-Gas Exploration in Utah, by David E. Tabet and Jeffrey C. Quick, and Coalbed Methane Potential and Activity of the Illinois Basin, by Steven Tedesco.
1Dorado Gas Resources LLC, Englewood, CO; current address: 16746 E. Prentice Circle, Aurora, CO 80015-4130 (ssax1955@aol.com)
Background
The Western Interior Basin, located in Southwestern Iowa, Southeastern Nebraska, Western Missouri, Eastern Kansas, and Northeastern Oklahoma, is composed of the Cherokee Basin or Platform, Forest City Basin, and the Northeast Shelf in Oklahoma. The coals in the Western Interior Basin are Middle to Upper Pennsylvanian and generally are less than three feet thick but are laterally extensive. The primary coals of interest are in the Cherokee and Marmaton Groups of Middle Pennsylvanian age. The coals have sulfur contents, moderate to high ash values, and low moisture, and rank is medium volatile on the western side of the basin in Kansas and Oklahoma grading to High Volatile C in Southern Iowa and Eastern Missouri. Coal mining activity has been limited; it began in the early part of the last century, and most of it has been in the form of surface mines near where the coals crop out. There have been documented mine explosions in the underground mines of Eastern Kansas and Western Missouri. Economically important coal deposits in Illinois and Wyoming have limited the viability of the coal industry in the Western Interior Basin. The basin has historically produced gas from black shales or slates and coals from areas just north of Kansas City to northeast Oklahoma from as early as the 1920s. The exploitation of this resource diminished in the 1930s to an occasional completion or for providing gas for a house or local business. In the mid-1980s the revitalization of the exploitation of this resource began in Northeast Oklahoma and Southeast Kansas due Federal tax credits. However, because the coalbed methane model during this time was the San Juan and the Warrior basins, the thin nature of the coals in the Western Interior Basin, at the time, restricted gas markets, and the presence of saltwater produced from the coals limited their exploitation and development. In 2001, Devon Energy purchased a Patrick Exploration project of 100 plus wells and associated acreage in Northeast Oklahoma and an acreage project for a Denver group in Southeast Kansas, sparking renewed interest in the area. Activity in the area was further accelerated in the basin, with growing environmental opposition elsewhere to coalbed methane development, problems with water disposal, federal and state inability to permit wells, and a gas price differential that reached as high as $2.10 in July, 2002, in Wyoming, Montana, and Colorado. In the Kansas City area, which lies in the heart of the Western Interior Basin, there is a growing gas market; product prices vary between Mid-Continent and NYMEX with minimal or no differential; there is a declining product in the existing pipelines that extend from Western Kansas and Oklahoma to Kansas City and beyond; and there are friendly regulatory bodies, lack of federal acreage or involvement, and limited to nonexistent environmental activity. The play is in the early stages of exploitation. Reported gas content in the coals varies from 5 to 450 scf per ton. Gas quality varies from 96 to 98%% methane, 1% to 3%+ ethane +, 0.5&+ CO2 to 92% methane, a few percent nitrogen, and CO2 with BTU contents varying from 850 to 1050. Water rates vary from a few barrels to over 1000 barrels a day. Initial completion practices began with single-zone completions until 2002, when the State of Kansas vacated the rules preventing commingling several zones in the same well specifically being produced for coalbed methane and shale.
...the exterminators...
We're #2 on the top read boards:
Most Read Boards Today
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1 BigHub.com, Inc. (BHUB) 27029
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4 Panamersa Corporation (PNMS) 4316
5 Russel Industries (RSDS) 3420
6 XECHEM INTERNATIONAL, INC (XKEM) 3409
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9 ETERNAL IMAGE INC (ETIM) 3038
10 BB's Penny Haven 2785
I think WRNW is establishing a geographic footprint. I have been reading about how small producers should go about building a successful O&G business and so far WRNW fits the bill.
I may go out and get some depends undergarments in anticipation of that MACD crossing into the positive.
It is amazing how similar they are. I hope the similarities go on and on. HMGP looks ready for another leg up too.
I thought it interesting to line up the HMGP and WRNW charts. The green line lines the charts up at about the same conditions with MACD and RSI.
I am happy with the way this is performing. I wouldn't change a thing right now. As they say, "if it 'aint broke...don't fix it."
Who knows where we finish today. The thing I have my eye on is that ever rising trend line along the bottom. It is very strong.If this continues I don't care about news one way or the other. This is chugging along beautifully.
jc
Just got back in. Thanks for the update Lowman. Everything looking good. All I care about are those rising bottoms. When we get news....well....I'll read it.
jc
Great close. The indicators aren't out of control. Everything is heading in the right direction.
Beautiful...decent orderly day. See everyone tomorrow.
jc
...Not unless he gets back in. After all, it's still at flea market prices.
jc
Good. IMO. Keeps a lid on things. If it runs too hard too fast the bottom would likely fall out on flipping and panic selling. Steady as she goes!
I think we will hop up a notch soon.
jc
Here is an excerpt from the 2007 Wildcatter's Convention. It is an interesting read:
Independents: Lessons to Teach
Admittedly angry over Big Oil’s big profits the past couple of years, a host of elected officials in the nation’s capital recently cobbled together a package of onerous proposed legislation designed to strip the industry of tax breaks and to force it to increase royalty payments.
However, it would be prudent for the zealous lawmakers to take an extra deep breath of the apparently thin air enveloping Capitol Hill in order to calm down and examine a major potential consequence of their current shenanigans:
The hastily assembled anti-industry proposals, once enacted, may well decrease domestic oil and gas production (read: increase imports). After all, the new laws undoubtedly would impact not only the big guys but also the independents and small operators who fill the critical role of finding and producing the bulk of America’s own oil and gas resources.
Given the current anti-industry jockeying in the D.C. crowd, it’s timely indeed that a forum at the annual AAPG meeting in Long Beach, Calif., will include a presentation tagged “From Wildcatters to Wall Street: The Role of Independents and Small Operators in Today’s Oil Patch.”
“The importance, particularly today, is there’s a real push for growing our own domestic natural resources, especially in terms of natural gas production,” said Monika Ehrman, an attorney in the Oil & Gas Practice Group at Locke Liddell & Sapp, who will make a presentation at the meeting.
“It’s the independents who produce most of our oil and gas resources (an estimated 90 percent of the oil and gas wells in the United States),” she said, “but the role of these companies and the small operators is overshadowed by the supers, such as Exxon, BP and others.
“People are not as aware of the important role independents play,” Ehrman noted. “This can be a one or two-person oil company in West Texas with its own rig, and also the larger independents who have grown from being focused on a regional area, and in some cases have grown internationally and then decided to come back to a domestic area.”
Valuable Lessons
Independents and small operators are usually leaders in a specific geographic area, Ehrman said, and they become leaders in operating these areas and in the technology. The former Mitchell Energy comes to mind given its almost two-decade effort to develop the technology to produce gas in commercial quantities from the now-hugely-productive Barnett Shale.
There are plenty of lessons to be harvested from these smaller members of the oil patch, according to Ehrman, who noted several examples:
The first thing one can learn from an independent or small operator is how to define a scope, she said. This involves defining an operating area, which could entail divesting assets scattered geographically, including overseas, and narrowing the focus.
Ehrman cited, for example, EnCana’s “amazing” set of international and domestic assets and the ultimate divestment of some non-key properties to focus on domestic natural gas production.
She noted still another way to define yourself is by resource area, such as the Barnett, the Fayetteville Shale or the Canadian oil sands.
How to set and measure goals is yet another lesson to be learned. Ehrman noted what makes a successful independent successful is they have a way to set and measure goals (whether formally or informally) and the level of risk. The risk can be financial, geographic, technical, political, etc.
Independents have the advantage over the majors here in that it’s easier to communicate and focus on goals with fewer levels of management; measurements of risk levels or limits are performed on a routine schedule.
Become an expert -- either keep up with or develop technology that makes you a leader in the designated area.
This doesn’t necessarily mean the most expensive or the most cutting edge technology but what works best for the particular objective. For example, producing marginal wells in the Oklahoma Panhandle may require less sophisticated technology than what is needed to frac the producing intervals in some of the now-popular shale plays.
The successful independent avoids empire building -- the goal is to become the best company in a particular area or region. Whether private or public, the aim is to grow for the sake of quality.
And it’s not always about acquisitions; it also entails divestitures where practical.
I can confirm that Curtbs. I got an email from them today saying the same thing. here it is:
John,
With the changes in our management staff, we are in the process of gathering all of the information together so that within the next 30 days or so we will be able to put out a comprehensive letter to all shareholders that will lay out all information about the company and our plans.
Thank you for your patience on this matter.
I nibbled up some more today. Here is the recent day's activity showing the rising base:
Thanks. I have registered and am waiting for the confirmation email. Thanks again. WRNW is still setting those rising bottoms. We will soon be trading between .0055 and .0065 , IMO. I really like the way this is building.
jc
While things are quiet I have a question for the board. Who has a brokerage that provides level 2 for pinks? I use TD Ameritrade which does not. OTC.BB's yes, but not pinks.
jc
A lot it would seem.
True enough... It's low, but I like pleasant surprises. :)
Yes indeed. To be in at or near the bottom is nice. I like the way the base has been building recently. We are up well above my average. It feels good to be ahead of the game for sure.
Orion1,
The longer you stay in "penny land" the more hesitant you will be to give price projections. It is almost more a matter of doing your homework and putting your money where it makes the most sense. WRNW has given projections of around $10 million in income for 2007, give or take. If that is anything close to accurate I would use the total Authorized for WRNW of 500 million since this would be the biggest possible share count. Those conditions give you $0.02 a share, which is about 4x where we are now. If they announce profitable M&A's , better than expected oil recovery etc. , who knows? Personally I hope to see a nickel soon and what follows depends on what the company demonstrates it can do. In my experience with microcaps the biggest factor is management. If we have a company well run by individuals intent upon going as far as they can take it by legitimately growing the company we will be fine.
...all my opinion...
A link to secondary O&G stocks.
http://finance.yahoo.com/q?d=s&s=ABP%2BAE%2BAEZ%2BALTX.OB%2BAOG%2BAPA%2BAPAGF%2BAPC%2BAPU%2BASPN...
A pleasure.
We're snowed in today, so I am digging around for info. I would like to add that the SEC website contains a list of suggestions about checking out O&G stocks. It suggests that you call State agencies to see if there are any known issues or red flags. Of course I have done that having called both the OCC and the State Securities office. Both have no negative issues to report concerning WRNW. It also suggests doing DD to verify assets. This board is full of such DD. If WRNW is sitting on good leases, opening up wells, and it's Oil Service company is in full swing this is more or less a no brainer, IMO.
...coming from an investment banker, those are strong words.
My favorite excerpt from the article:
Cliff Adams, division director and co-head,
global oil and gas group, of Houston-based investment
banker Macquarie Securities (USA)
Inc., says a microcap’s management team and
its assets are key to attracting capital. “If those
two things check out, there’s really no distinction
between them as a Bulletin Board or Pink
Sheets company, Amex traded or privately
owned. The capital is out there whether it’s
from development-capital sources, hedge funds
or private-equity funds.”
A very interesting read about O&G microcap funding. As I read it the main thing to look for in a quality O&G microcap is quality management and tangible assets. If you think Mr. Rees fits the bill and if you think a micro O&G with producing leases, their own rigs, a wholly owned O&G Services company and a soon to be defined M&A strategy also fit the bill, you may want to read the following:
http://www.gasrockcapital.com/PDF%20Articles/Financing%20the%20Microcaps%20august%202006.pdf
Low, I long since put him on ignore. He is jerking everyone's chain or is just plain deranged...one or the other.
OT...How about someplace like this?
Hang in there Dr. See the big picture:
Yes sir...
Nice close. I know most keep there eyes glued to the highs, but look at those higher lows. That , IMO, is the story right now.
It wouldn't surprise me. Unfortunately I don't have Lv2 for pinks.