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To me, it appeared that some hoped for worse. I am satisfied with how it ended up. For now anyway.
Mrs. Smith
From the Investorhub site go to GSPE, News, choose Gulfslope News (10-Q).
Or go to GSPE’s Intro Box on Investorhub, scroll down to “Useful links” and choose 3rd option “Gulfslope SEC Filings”.
Either way should do it.
Mrs. Smith
Yes, “Ugh”. I agree with all of you.
One of the things that distresses me the most about the decline of the GSPE shares, is the short sidedness being displayed in the extreme by those that either lack vision, or actual ability, or both. I refer to the the potential for massive earnings for shareholders from drilling successes that some are exchanging for penny ante trades worth but fractions of pennies compared to those dollars.
Yes, the sharks, the bone picker brigade, the brokers, and market makers have arrived to get in on the action. And, there is really no effective way to hide from them. No one will be exempted from any of this. The golden goose is being plucked. And feeble attempts to disguise this intent reminds me of the ‘salesmanship’ I witnessed at the carnivals of my youth. And at this point, none of this is about the price of crude oil, market news, or the impact on GSPE shares.
Those things no longer matter because these sharks are here only to make a buck the quickest and easiest way possible. And when they leave, the money they take with them will be ours.
I know from experience that some here are very knowledgeable and more ‘tuned in’ than most. So I hope that perhaps these unfolding events were anticipated and will be avoided. Not so much for the rest of us.
Perhaps the company survives to continue the quest. One of the things I have noticed about the Gulfslope management team is that they are also very ‘tuned in’, as one might expect. In fact, they seem to always have anticipated the progression of events, and have a plan to offset the repercussions. I am waiting to see if they have anything in mind now.
I believe that ‘no’ news is not necessarily ‘bad’ news. That is just another tool that can be used for manipulation by the unscrupulous.
Public companies must be cautious to not make statements that could be perceived as being inaccurate, because there are serious penalties for any misrepresentations. So do not expect the management team to casually throw out words just to appease disgruntled shareholders.
Considering his level of commitment, and the millions in personal loans he made to the company to keep it moving ahead, I just do not see John Seitz throwing in the towel.
After already enduring a +99% decline in the value of my shares to get to this point, I see no reason to panic now. Taking the loss just to salvage a few tenths of a percent of a penny on those dollars, and appease the agenda of others to the detriment of my own, does not appeal to me.
So I am staying ‘long’. I will have earned any money made on this deal. There has been no ‘quick and easy’ with any of this, and those that opt to take that approach find no favor from me.
If I had any balls, they would likely be big ones.
Mrs. Smith
I crave good news for GSPE shares, and now looks like a good time for any such news to be disclosed. But, unfortunately, developments usually occur in their own time, and do not respond to prevailing needs. So, we wait.
And also, I prefer to think of the current state of the shares as only the suffering of the trading games, and not the circling of a drain. I am hopeful that, once this has run it’s course, the share price will recover.
But I read that some nice dirt bids were snagged on the way down. There is always that.
Next, there may be those with questions. And I seriously doubt that statements like “I have a clear conscience” are going to cut it. Nor should they.
As in the past, I prefer to not give direct trading advice. But I wonder what harm could come to the shares if they took a brief period of rest to relax and recover?
Hoping for a Steady On Now, GSPE.
Mrs. Smith
In the spirit of providing timely data, I agree the oil price has been heading North. But suddenly it is taking a siesta down South. However, it is still holding around $80 from the high of $82.41 on Tuesday.
I lost track. Is it 97.9% or 99.7%?
Lol, I’m just envious of your average.
The EIA reported today crude oil inventories fell by 17 million barrels as of the week ending 7/28. Gasoline rose by 2 million barrels. Jet fuel and distillates declined by 1 million barrels.
Link: https://ir.eia.gov/wpsr/overview.pdf
Did you notice the headlines are declaring that OPEC oil production ‘fell’ to its lowest level in three years?
I may not know what I am talking about, but I am going out on a limb and blaming this on the fact that the Saudis intentionally cut their oil production.
But not to worry, being the premier oil producers and profit making entity in the world, they should be fine. Especially since this move should cause crude prices to rise even more in the future.
There are those that advise the Saudis to contribute much of the wealth from their oil earnings towards enabling renewable energy.
To me, these recommendations sound like a justifiable use of the Kingdom’s wealth as long as you are unconcerned about being beheaded.
As far as the GSPE share price goes, the perpetraders appear to be in a hurry to get it lower. Nervous of any news that might pop up most likely.
Mrs. Smith
I do not have a lot of time for the board. But as it is Saturday, I offer a few closing thoughts.
Over the past several months, since the Fourth Quarter 2022 when Gulfslope Energy paid $70,000 for the most recent Tau lease ‘rental payment’, the company does not appear to be in the process of abandoning the pursuit of the Tau prospect. By the way, this payment was a 100% increase from the prior annual amounts.
This goes to the point NorOilGuy1 was making and supports his conclusion regarding “why would he do this?”.
These activities contradict the point of view that the company management intends to cease conducting their normal operations. And recall that during this same period of time, Gulfslope was working on evaluations for purchasing producing properties.
Speaking of producing properties, Cox Operating, LLC, a mid-size independent, filed Chapter 7 during May 2023 so they could liquidate assets to pay creditors. Many of these are GOM oil assets. Prior to this, it was reported in January that Cox Operating sold a few of their GOM oil assets to Arena Energy, another GOM operator. The remaining Cox assets likely face a similar fate.
This is in alignment with the Gulfslope management strategy to purchase producing assets. Perhaps this is another reason for the motivation of why he is doing this….
And it is my belief at this time that the Gulfslope management team has way more to gain by continuing this strategy, than they would by accepting “dirt bids” on company assets sold in a public auction.
Could it be that a considerable number of the shares traded these last few months are the same ones constantly being recycled over and over? Is anyone suspicious that there could be parties wishing to ‘gut’ the GSPE shares to bring them to this point? Would this not require a certain level of coordination?
There may only be circumstantial evidence, but nothing seems to be able to cause these parties to deviate from the plan, so what other conclusion might there be?
The signs were obvious. Everyone should have been able to see the current situation in GSPE shares as it developed.
And I wish to mention my total agreement with the comments by Tb7 on July 6th. I will not feel any distress if those shorting the GSPE shares were punished by good news.
I am planning to set aside time to review the pending 10-Q. So there is the potential for future comments.
In the meantime, we should all be celebrating $80 oil….
Mrs. Smith
I sincerely appreciate the compliments, spec. I really did attempt to add substance to the discussions. Thank you for noticing. And, our back and forth bantering was the high point of my posting career. Link to highlights below….
Anyway, some said WTI would approach $80 due to demand and declining supply. Today I noticed these comments have proved to be accurate. Hopefully this will spur on drilling activity in the GOM.
Take care and best wishes until my return.
Mrs. Smith
I agree with those that believe a company shell and accumulated NOLs are assets that have value. And rightly so.
Still, an actual offer to determine the asset value will be comprised of many calculations, each at a level much more complicated than would ever appear in this discussion.
Potential buyers would know that NOLs transfer with an asset, as this is the main attraction to reduce their cost basis. This should boost the price of any offer.
And we all should be grateful to spec for his leadership. I found his efforts to be genuinely informative and beneficial to the success of our board. Thank you spec for demonstrating how it is done. I have learned much from you over my time here. Just imagine if I had been a better student.
Perhaps a positive narrative can be found in the next 10-Q. It has happened before. Leave it to those here to track it down and follow it to fruition.
I have enjoyed posting on this board and reading these routinely thoughtful and informative posts. And thank you all for having made me feel welcome, despite the fact I do not trade.
Even though my focus will soon be on a new work project and some personal travel, I must state that I have come to view my time here with great fondness.
Moving forward, soon I may only be with the board in thought and spirit. But I am 100% there, joining with all of you “for the win”.
I will likely be unavailable throughout much of the remaining year, so take care friends.
Mrs. Smith
Please recall that Gulfslope Energy does have the 3 Delaware LLCs that the BOEM and BSEE have accepted and approved for any GOM bidding and drilling activities. These could be of interest to potential buyers.
Any future agreement that is negotiated to end up with a GSPE share price value greater than $0.001, is a good deal for us as of today.
For what it is worth, I was hoping for a more favorable net loss on my Gulfslope investment.
Mrs. Smith
I see that things look really bad for GSPE shares.
Those that act quickly, can likely sell off many shares before $0.0007, which I believe was elcheepo’s original prediction back in March.
He only recently raised it to $0.0009 in June, so good call…. Really, really good.
The crystal ball belonging to elcheepo evidently has much clearer images than those of any other participant on this board.
Just giving credit where credit is due. I do not know how he is able to do it. Clairvoyant perhaps?
These CHARTS do not matter. The CHEAPENISTAs are speaking.
Over and Out,
Mrs. Smith
When reviewing forecasts it is a good idea to compare with all others that are available, the idea being a consensus of opinion.
And the opinions for now all appear to be coalescing around the point that the market is becoming more positive and supportive of the increased demand for oil and gas energy.
Naturally, this will encourage more exploration to meet the demand. Enter Gulfslope Energy.
The moral to my story is that the facts on record indicate Gulfslope should continue with their exploration goals. So this is not based ONLY on my opinion, however beneficial that may be.
Yes, times are challenging for now, but time has not yet run out. And in the end time will surely tell the tale.
Detractors need to come to the debate with more than a negative opinion and an offer to buy our shares.
And so, I have included two articles with links in separate posts.
Mrs. Smith
As promised, good reading. And documentation of my point of view. See what you think.
Link: https://www.houstonchronicle.com/business/article/crude-oil-prices-rising-demand-increase-18199360.php
’Analysts eye $80 crude as supplies tighten and demand rises’, Houston Chronicle article, by Daniel Graeber, Released July 16, 2023
Bullish factors in the oil market were on display last week as supplies became a growing concern, though demand may be determined by what happens next in the world’s leading economies, analysts said.
Both the International Energy Agency and the Organization of the Petroleum Exporting Countries increased their demand estimates in their monthly market reports last week. Those forecasts came amid pledges from Saudi Arabia and Russia to trim production by a collective 1.5 million barrels come August, tilting the scales toward a tighter market.
Elsewhere, the United Nations pleaded for calm in OPEC member Libya, where armed militias are protesting the kidnapping of a former prime minister. Production from the Sharara and El Feel oil fields was curtailed as a result of the fighting. Combined, that puts more than 300,000 barrels of oil per day in jeopardy.
RBC Capital Markets said in a research note Friday that “Libya represents the biggest near-term oil supply risk.”
Holding in the upper-$60 per barrel range since April, West Texas Intermediate, the U.S. benchmark for the price of oil, broke through the $75 mark last week after jumping some 8 percent, or $7 per barrel, since the start of July.
“I think we have a real shot to get to $80 per barrel,” said Phil Flynn, a senior energy analyst at The PRICE Futures Group in Chicago.
From his view, Flynn said the main driver since the beginning of July has been the bullish narratives, particularly with the IEA forecasting record oil demand this year. Even with the lingering headwinds from inflation, he does not see a major slump in demand emerging.
And with supplies at a premium, oil prices will have no place to go but upward as a result.
Should the Energy Department surprise on the upside with a production forecast in the monthly drilling report, however, it could offset some of the supply-side concerns. Total U.S. crude oil production is around 12.5 million bpd, some 2.3 million bpd more than Saudi Arabia, and much of that is coming from here in Texas.
Giovanni Staunovo, a commodities strategist at Swiss investment bank UBS, said investors may be in a believe-it-when-they-see-it mode on supplies, so OPEC and Russian exports are something to watch, particularly given the sanctions-busting on Russian barrels.
?“If the oil market is undersupplied as we all think, we should start to see at some point sharply lower inventories, which should further lift prices in my view,” he said.
On some of the broader economic issues that may influence crude oil demand, there’s no shortage of data coming out of the U.S. economy this week. Last week saw core inflation dip below 5 percent annually to June, while wholesale prices increased by only 0.1 percent last month, the slowest pace in nearly three years.
This week, data on everything from housing starts to retail sales and industrial production are on tap, which will help those trying to read the tea leaves on the Federal Reserve’s next rate move.
Many of those data could be lower than prior months, leading to the perception the Fed may stand pat on rate levels. But commentary last week on consumer-level inflation suggested that a few data points are not indicative of the entire picture.
“The U.S. economy is in a much better shape than other developed countries, they will start reducing rates earlier than the rest, demand for dollars therefore will decline relative to the euro, sterling and Yen and, as we all know, a weak dollar is demand supportive,” said Tamas Varga, an analyst at the London oil broker PVM.
This week should provide a nice set up for Fed meetings starting July 26.
Mrs. Smith
The OPEC Outlook For The Oil Market 2024 - Featured Article, Released July 13, 2023.
World GDP growth in 2024 is forecast at 2.5%, slightly below this year’s expected growth level of 2.6%. Key oil-consuming countries, including China and India, along with some other developing economies in Asia, will continue their healthy growth levels and be responsible for around half of next year’s global economic growth. This is under the assumptions that general inflation will continue retraction in 2H23 and 2024. Tight monetary policies are also assumed to continue and key policy rates to peak by the end of 2023. Moreover, central banks are expected to engage in more accommodative monetary policies by 2H24. The services sector is expected to remain the main global economic growth driver for the remainder of 2023, with a normalization of the growth dynamic expected in 2024, when industrial production picks up again. In the OECD, GDP growth is expected at 0.9% in 2024, down from 1.1% in 2023. In the non-OECD, 2024 GDP growth is forecast at 3.9%, the same level as in 2023. Numerous uncertainties remain, to include high inflation, monetary tightening and high global debt levels.
Global oil demand in 2024 is set to grow y-o-y by a healthy 2.2mb/d, on the back of a continued rebound in Chinese economic activity, and firm growth in other non-OECD countries. Within the regions, OECD oil demand is forecast to rise y-o-y by 0.26 mb/d, while non-OECD oil demand is projected to show a considerable increase of nearly 2.0 mb/d, mostly in China and India, and supported by incremental demand in other regions. In terms of oil products, transportation fuels – including jet fuel and gasoline – are expected to drive oil demand growth in 2024, with air travel expected to see a further recovery and expansion. Gasoline requirements will continue to see support from steadily rising road mobility in major consuming countries, such as China, India and the US. Both on-road diesel, including trucking, as well as healthy industrial, construction and agricultural activities in non-OECD countries are expected to support diesel demand. Light distillates are projected to be supported by capacity additions, and petrochemical margins in non-OECD countries are expected to remain healthy.
Non-OPEC oil supply is forecast to grow y-o-y by 1.4 mb/d in 2024, supported by healthy demand and upstream investment. Upstream capex investment in non-OPEC countries is expected at around $480 billion, roughly the same level as 2023 and 9% more than in 2022. US liquids production growth in 2024 is forecast at 0.7 mb/d, mainly from Permian crude and non-conventional NGLs, as well as from the Gulf of Mexico. Oil production in Canada, Guyana, Brazil, Norway, Kazakhstan, and Argentina is forecast to increase through new field start-ups, ramp-ups or the optimization of existing projects.
The continued commitment of the countries participating in the Declaration of Cooperation (DoC) and the successful approach of being precautious, proactive and pre-emptive and the carefully devised production adjustments have added a considerable measure of stability to global oil market, based on which the solid oil market fundamentals seen this year are expected to extend into 2024.
Mrs. Smith
Spec, a sincere ‘Thank You’ for the kind words regarding my post to Tiger01.
Some encouraging news. The U.S. economy is showing signs of disinflation. There was a reduction in the PPI, and the CPI data reflects the lowest level since March 2021. U.S. Treasury yields are attempting to moderate, but Equity markets appear to be on the upswing. And WTI is still trading at a 3 month high.
Will any of this bring relief to Gulfslope Energy? I cannot say. But hopefully the declining share price will not trigger a reverse stock split. Nonetheless, Gulfslope Energy continues to issue audited financials, 8-Ks and 10-Qs. Not signs of a terrible company.
Yes, there is speculative risk. But there is also still more to be gained by sticking it out than there is by selling out at these prices. And, even a blind hog can still find acorns, so perhaps we should not be in a rush to give up at this point.
Now for some general comments for other readers. I enjoy reading those worrisome posts about the ‘effects of a big trading day’. You know, the one where .003% of shares traded (4M shares). Allow me to point out this is even less than 1/2 of 1% of outstanding shares (let that soak in).
And I suppose that the other 99.997% of shares that did not trade do not count for anything and we should all just ignore them? As long as this minuscule volume is all there is, how can it be determinative for the vast majority of the remaining shares?
As far as GSPE shares are concerned, it is not a mistake to follow the whales over the advice from these posts. But only you can decide your path. I will concede that if you are a momentum trader, there are better stocks on which to focus. The big money to be made from GSPE shares will come from the investing side of things.
The exploration business is not for those requiring constant reassurances. There are many facets that must be addressed, both financial and technical, and these take a great deal of time, effort, and money. So hand-holding is not a priority.
With a clear conscience I say, if you feel like you need protection from a difference of opinions (Kool-Aid), maybe this is not the best place for you. But the choice is yours.
And again, I stress that the big money in GSPE shares will come from investing rather than trading. So, if you are not making money, it is not because you are unable to purchase shares low enough to trade for a profit, it is because the bit is not yet turning.
Before you leave, consider that any partner news gets the share price significantly up on the same day. Same for drilling news. To say nothing of the share price after an actual discovery. This is not just looking through rose colored lenses. Facts are what they are. A coin has two sides. See both sides of it! The share price has only declined because of no news, not because of any bad news. And as long as the share price continues to decline, there is only a small chance to trade for a profit.
So, who is it that is saying it is over? And why do they wish for us to sell off our shares so cheeply? And who is it that is buying these shares without hesitation? And, if things are as bad as we are told, why would they?
With all that said, the advice I have for other readers is to keep things in perspective. Be objective and analyze. Leave emotion aside. Nothing ruins stock trading faster than a healthy dose of emotion. Best to focus on identifying and discarding misleading information. Just in case there is any.
Mrs. Smith
In my opinion, the recent low selling price of GSPE shares only represents the value placed on them by the relatively minor numbers of shareholders choosing to sell their holdings at this point in time.
And they were willing to lower the sales price enough to create the required liquidity. Probably nothing more to it than this.
Perhaps it is still too early to predict an outcome for Gulfslope Energy and GSPE shares. The value of the intellectual property is not diminished and the only thing currently lacking is the funding to pursue the drilling goal. So as you pointed out, much potential remains, and I do agree with you on this.
Evidently, these recent sales do not belong to members of the Gulfslope management team or to any of the major shareholders with large holdings. Those shares never trade.
Perhaps it is shareholders with somewhat less, but still significant holdings. But, by and large, these shares do not trade either.
So what we can deduce is that these latest sales occurred from those owning much less than 10% of the outstanding shares. Or, in other words, shareholders like ‘us’.
This selling can be considered regrettable and undesirable, or maybe even worrisome. But these sales are not representative of a catastrophe in the making, and it appears they will not be.
And I am less curious about who is selling than I am about who is buying. The new buyers at these price points appear anxious to take advantage of those selling at these prices.
In fact, it appears that once the stock price begins to rise, a large trade at a reduced price occurs. Is this a coincidence? Or is there perhaps a desire to hold the price low a while longer in order to purchase even more shares?
Please consider this for a few moments. I am interested to know if you have noticed this trend and formed an opinion.
During this selling we were also able to see that there was no shortage of buyers available at these price points. And no lack of willing buyers with money to purchase shares seemed to stabilize the share price and appears to indicate it is only ‘over’ for those doing the selling.
Of course there is always the potential that somebody new might know something new, and is setting up to get a big payday at a discount at some point in the future. I will not deny this is a possibility.
But I also want to mention that someone(s) with vision, or knowledge, or both, and the necessary resources are mining all available shares of GSPE stock at every opportunity.
Is it not curious that these new buyers obviously do not appear to be much concerned about any decline in the price of GSPE shares, as the money keeps pouring in to purchase more shares?
And please recall, the shareholders with the largest holdings were investors interested enough to purchase great numbers of GSPE shares @ 12 cents each.
So is it not likely that some of these shareholders, while still holding their initial investments, may also be interested in adding additional shares @ .0012?
Particularly if these actions also shore up the share price, and protect the investment.
Surely none of this is an oversight. These buyers must think of this as only being bargain hunting, as their sights remain focused farther ahead in time.
One way to possibly tell if these large investors are indeed adding to their holdings, is if these newly purchased shares do not trade again anytime soon, since the buyers will likely continue to hold on to them. Help me be watching for it.
It is my expectation that the Gulfslope Energy management team will continue to focus on finding new partners.
I wonder if the Gulfslope staff is also working on an Exploration Plan for Tau 2. One that can be presented to Delek for consideration. This will be required since the drilling will be from a new lease location. Would be nice to hear of any progress towards a Tau 2 drilling plan.
All things considered, I must agree with you that GSPE shares are not yet over. And there are at least two of us saying this on the record here.
Looking around, I see room for others to join this opinion. Anyone else willing to be on the record? Or is it only spec, Tb7, and I willing to put our mouth where our money is?
Sorry for such a long post. But for now, I am only intermittently posting. And I had a lot saved up.
Mrs. Smith
Perhaps this is a good time to introduce another topic for discussion. From reading the Journal of Petroleum Technology, I learned that many of the offshore GOM oil producers and service companies are leaning towards implementation of the ‘predictive maintenance’ model (PMM) using Artificial Intelligence (AI).
This enhances profitability by cutting expenses, improving safety and reliability, and increasing productivity. This could certainly benefit Gulfslope Energy in operating platforms (PMM) or drilling wells (MPD).
Coincidentally, Artificial Intelligence can be a benefit for solving many other issues facing us in our daily lives. And we are in dire need of some kind of intelligence from our leadership.
It is said that in 3 to 5 years AI will be able to do all calculations ever performed in the history of mankind in one second. Assuming this is an accurate statement, imagine what could be accomplished in two weeks.
Since the human brain will be unable to compete with AI, the trick will be to harness it’s power in such a way that it does not evolve in to controlling us and our lives.
If we fail, we will not have supervision over it. We may just be sitting around wondering what just happened. So all groups will need to come together and focus on getting this right, as no group will be exempted from the outcome.
The USA will continue to be the leader in the development of AI, which again brings me back to the need for some kind of intelligence from our leadership.
https://jpt.spe.org/ai-is-here-and-its-helping-with-predictive-maintenance-in-the-oil-field
Mrs. Smith
As a reminder for the record, Gulfslope’s Net Deferred Tax Asset value is 15 million dollars.
Additionally, it is worth remembering that Mr. Seitz has many millions of his personal wealth invested, and, per the most recent 10-Q, he continues to inject funds as needed.
So to me, it does not seem likely that the management team is ready to throw in the towel. I anticipate that many of the shareholders will continue to be right there with them.
Although some shareholders may feel the need to abandon their expectations, I say do not stress over it. Yes I know, easier said than done.
Also, there is the distinct possibility that the new shareholders taking their place will be a better fit going forward.
Mrs. Smith
It appears a little over 41% of the 5.5 million GSPE shares traded this past Friday were buys. So approaching an even split between buys and sells. In fact, the last trade was a ‘buy’ for 1.7 million GSPE shares. Not bad for no news.
Nonetheless, when trying to push the share price lower to buy cheaper shares, the result is devaluing ALL other GSPE shares owned, and risking more than can be gained.
The celebration of purchasing GSPE shares at near par value is the same as Napoleon throwing a party just before the battle at Waterloo.
If continuing down this path, ‘potential’ investors may not actually be attracted to committing millions of dollars towards a scenario of a declining share price. Draw your own conclusion as to the resulting consequences to Gulfslope Energy.
Although I do not personally know the Gulfslope management team, other individuals, companies, and institutions do. And the odds are this good reputation did not all happen by accident. I anticipate Gulfslope’s managment team will continue it’s mission with integrity and hard work. I wish for them success and fulfillment.
Mrs. Smith
American Petroleum Institute (API) statement regarding ‘permitting reform’, released 5/28/2023:
“We applaud Congress and the Biden administration for reaching a bipartisan agreement that includes important progress on permitting reform. Our current system for reviewing the infrastructure projects that fuel our economy and support our way of life did not become an endless gauntlet of bureaucratic hurdles overnight, and it will take more than one step to develop a workable process. This is a positive start, and we look forward to continuing to work with policymakers on both sides of the aisle to pass this agreement and build on this progress.”
The genesis of investing is usually for the share price to rise.
I still believe strongly in Gulfslope Energy and I will continue to support the GSPE stock. But until we get an update from the company, I will be limiting my posting on the GSPE board in an effort to assure my posts are of the quality expected and to focus on family.
I will continue to monitor the board as moderator and offer clarity if needed.
Regards to all….
Mrs. Smith
Even with strong upstream cash flow, high crude prices, increasing demand, and after almost 2 decades, we are finally witnessing permitting reform.
This should alleviate the long lead times before a new oil and gas project can even commence. Which means that investors will no longer need to wait years upon years before they begin to get a return on their investment. This will be a positive development while trying to secure investors for a big project, such as Gulfslope purchasing production or drilling a well in the GOM.
Interestingly, 30% of the Debt Ceiling Bill is dedicated to oil and gas ‘Permitting Reform’.
I predict Gulfslope Energy has a very favorable outlook in support of these recent developments.
https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf
Mrs. Smith
Your decision to buy additional GSPE shares was not so “idiotic” in the end, lol. What a day.
Mrs. Smith
Just to clarify, Gulfslope has incurred accumulated losses of $69.7 million as of 3/31/2023. One-half of this amount will expire by 2038 (15 years) the other half will remain indefinitely. GulfSlope’s NOLs are allowable as a deduction against 100 percent of future taxable income. The Net Deferred Tax Asset is approximately $15 million. A big plus if there was a merger.
Mrs. Smith
You are absolutely correct. One final observation, and just off the top of my head math, but with 1.3 Billion shares outstanding, all the sales for the last month is less than 5% of the total shares. So the whales are still hanging in there, and since I am with them, I will too.
One thing I noticed is 47 trades so far today. So, smaller amounts, and definitely not the big dogs barking.
If I had to guess, I would say small traders overreacting and losing it. To each his own…. Perhaps new ownership of these shares will be a good thing.
Spec did say this could be a bumpy ride. He was right.
Mrs. Smith
There is no replacement for fossil fuels.
There is more positive news for the GOM.
A recent report from the National Ocean Industries Association (NOIA) reveals that greenhouse gas intensity of US oil production, particularly in the US Gulf of Mexico, is significantly lower compared to most other regions around the world.
Highlights from the report:
* Total US oil production has a carbon intensity 23% lower than the international average.
* The US Gulf of Mexico has a carbon intensity 46% lower than the global average.
* Using the API Gravity of 37.5 of typical GOM crude, results in a 50% reduction in the average international carbon intensity.
Excerpts of comments by Erik Milito, President of NOIA:
* The US Gulf of Mexico energy production sets the standard for oil and gas production worldwide.
* The Gulf of Mexico produces a massive amount of energy with a remarkably small footprint.
* This study validates the importance of the US Gulf of Mexico as a source of energy with demonstrably lower carbon intensity barrels.
Link to the report and article for more information on the value and favorable economics of oil and gas production in the US GOM:
https://www.noia.org/wp-content/uploads/2023/05/NOIA-Study-GHG-Emission-Intensity-of-Crude-Oil-and-Condensate-Production.pdf?utm_source=Mailchimp&utm_medium=email&utm_campaign=ICF+study+emissions+
https://www.offshore-mag.com/regional-reports/us-gulf-of-mexico/article/14293916/report-us-gulf-of-mexico-production-has-lower-ghgs-than-most-other-oilproducing-regions
Mrs. Smith
Here is what I believe is going on…. For Whatever It Is Worth.
A lender was due to be paid back for monies provided. Gulfslope, being short of cash, has paid them back with stock shares. This transaction was not required to be reported, so no 8-K. Those shares are being converted in to cash.
It is not in the lender’s best interest to harm the share price, so much of this is happening after hours and as negotiated trades between principals. It should be ending soon. It is all in the minutiae of the SEC filings.
So, the company is still strong with support and in possession of a viable future. Shareholders are not the driving force behind these sales. What a relief. We will survive with only a scare. The share price will rebound.
Whoever it is that is buying these shares heard something, sees something, or knows something. And is not afraid to make a financial commitment to get a seat at the table. A noteworthy observation.
Do not give up on Gulfslope Energy. While we may be unaware of what is brewing behind the scenes, this is the fire providing that smoke everyone is seeing.
A wild guess says that Gulfslope has been beating the bushes very hard and has awakened someone’s interest and attention. We need to hang together and see what shakes out.
As was mentioned in T’s recent post, the GSPE management team continues to fight. Since I believe that too, I am standing by them.
Perhaps the best play for us all is to remember the demand for oil and gas is not diminished. And drilling in the GOM is surging.
This is not happening in secret, so there will be others wanting to participate. And Gulfslope is ready and willing to accommodate.
This is a guess. Nothing more than that. And you are welcome to do with it what you will….
Mrs. Smith
Good news is here again.
The U.S. Total GOM Rig Count is the highest it has been since Biden took office. Back up to Trump levels. Perhaps this is a favorable sign for GOM drillers.
https://www.dnr.louisiana.gov/assets/TAD/data/drill_weekly/WeeklyRigCountUpdate.pdf
https://www.dnr.louisiana.gov/assets/TAD/data/drill_weekly/ogj_rig_count.pdf
Mrs. Smith
As the world turns….
We sort of understand where those that are selling GSPE shares are coming from. The economy and the impact on the stock market is the first thing that comes to mind. As previously stated on this board, that concern is no problem, it can happen with any of us. So, no need to cover this ground again.
No, today what I have on my mind is, “who is it that is willing to buy?” Of course, it not possible for me to know. But one obvious reason is to buy it @ .004, and sell it @ .008. Definitely in a recent trading range for GSPE stock. And a 100% return.
But might it also be that some are anticipating an upward move for the stock? Common sense says that if the stock is expected to move lower in price, WHY buy a lot of it Today at a Higher Price? A very good question…. Who will do this? As in the past, if the stock price is expected to rise, more shares is more profits.
Up to now, the GSPE total average volume is around 60 million shares for 6 months (VWAP @ .0042). Yet, it is already about 30 million shares for the most recent 1 month period (VWAP @ .0039).
We may not know what is causing it, but one thing is for sure, the trading volume is certainly up, so no lack of ‘BUYING’. And these are not the common 5k share trades favored by manipulators.
So is there a contradiction in the buying and the falling share price? It does seem so.
And while I am not happy about the price struggles, considering the market conditions, it is not exactly unexpected. Perhaps others see it this way as well, so the price is less of a concern as long as the volume is there. That is one point of view supported by the facts.
Mrs. Smith
Some perspective to keep in mind.
While over the short-term things may get a little choppy for the economy, GSPE shares, and the stock market, does this mean anything more than we might have a bouncy ride?
History shows that at some point, there is always a REBOUND. So using past history as a guide, look for the market to bounce back just as fast as it dropped.
Yes, definitely something to keep in mind….
ABB2024 (Anybody but Biden),
Mrs. Smith
A faster way to increase oil production….
https://oilprice.com/Geopolitics/Middle-East/Iran-Seizes-Second-Oil-Tanker-In-Arabian-Gulf.html
Oil Tankers may want to consider being equipped with self-defense drones. When these attack boats show up, sink them.
In our past history, the USA was very effective in fighting off pirates. It would not take very long to sink Iran’s fleet of fast boats.
I wonder if Joe is getting his 10%?
We could always default to the D’s precedent of delivering a pallet of cash. That should show them.
Mrs. Smith
I have a full day ahead, and not that much time. But I want to take some of that time to reply to your post.
I am an investor following the vision of the opportunity offered by Gulfslope Energy. That is unchanged.
What has changed is the current administration, it’s attack on fossil fuels, and it’s attack on the country’s economy (inflation).
You are wearing an ‘investor’ hat. But if you put a ‘trader’ hat on, perhaps this all becomes more clear.
In my opinion, Brokers and Market Makers are negotiating these larger trades. So it is most likely not any of the traders from this board. You are right though probably a liquidation, perhaps forced.
But if we are not careful, we can still negatively affect what is going on. For example, assume for a moment that there is a group, unnamed in this discussion, with the desire to take advantage of the situation.
The reason is simple. Manipulating the share price lower provides the opportunity to purchase shares really cheaply. The idea being to get them as cheap as possible, then attempt to manipulate the share price higher, and higher again. Sales provide the profits.
You already know how this works. I know this from some of the terms used on the board. Dirt bid. Scalper. Whacking the bid. Slap the ask. Etc.
What makes it all the more risky at this time is that other investors are also already nervous. What if something was to trigger a big downward move? Reminds me of the term ‘avalanche’.
And that is the danger of ‘the game’ being played. These are not normal days. And reactions may not be normal either. An opportunity to sell higher may not ever come if the bottom falls out. This can easily be the fire providing that smoke you are worried about.
So the players accumulating cheap shares might only end up with a worthless pile in the end. Because they failed to see the damage that can be caused in the wake of the game. This is not a time to play the game. This is a time to support the stock, the company, and shareholders. Play later.
Thinking of trying to liquidate your position? Getting a few fractions of a penny is better than nothing? Think about it some more.
You are right to worry. That move is what starts the avalanche. Anyone with large numbers of shares can kick it off. What is the likelihood that we can all sell our GSPE holdings without negative effects?
Nope. We may only crash it. And if we do, it may not ever return. This is one of the reasons I still hold my shares in hopes that Gulfslope is allowed the opportunity to succeed. Hopefully these sales are nervous investors selling off. And if it holds to that, we escape with only a scare.
Fortunately, someone is buying. So somebody has a vision for a brighter future. Someone with big bucks to commit. But if we join in the selling, mayhem may follow…. The only things I plan to follow are the whales.
Again, you are right to worry. Some players do not care about the company. Or other shareholders. They only focus on running the price lower and accumulating cheaper shares. When they finally see it coming, it may well be too late for them.
The short-term may be challenging. There is nothing we can do about it. This die was cast a long time back. And the only long-term play I see is to wait it out, and start over.
The good news is none of this will diminish the need or demand for oil and gas. The GSPE product will still be viable and valuable in locating new GOM shallow offshore accumulations. A new day will dawn. Perhaps hard to visualize at this time, but it will come nonetheless.
None of us created any of this. We are not accountable. We only failed to act in a timely enough manner. And we did not fully appreciate the dangers to the oil and gas industry and the economy brought to us courtesy of incompetent politicians swimming in waters over their heads, with ideas that appear to not be well thought out.
That may not be accurate. They likely thought about it quite a bit. And then decided the damage is acceptable if they get to take over the government and hold all the power. This might be the “fundamental change” that was promised.
Ask Joe and the other politicians about it, if you ever see them. Although I doubt any of them are smart enough to realize what damage their efforts actually caused. And, in any case, I am certain they will be unwilling to admit their role.
After all, from their perspective, they are immune from accountability. Any fault lies with Trump and the Russians, evidently the only true powers in the world. Ironic. Those two are the ones not involved in creating this mess.
The bottom line is, this great country was founded by great men with greater ideas, and we should not lose site of this. In fact, we should endeavor to pass on those ideals while we move forward in life.
I am certain this is what Gulfslope Energy plans to do. And they have my full support.
Mrs. Smith
Typo Correction! “The world continues to spin and 92% of it’s energy is supplied by fossil fuels.”
It seems that no matter how hard I try, I cannot avoid these mistakes.… apologies. An affliction I am not able to shake. Perhaps I need to slow down. Fewer distractions may help also. And maybe some editing.
Talk about pulling your head out…. I need to practice what I preach.
Mrs. Smith
The world continues to spin and 92% if it’s energy is supplied by fossil fuels.
The truth is oil and gas will be produced, and deals will be made. And you can trust in this. No prayers required.
Oh, and another inconvenient fact, those three bank failures came out of blue states. Two from CA and one from NY. Need I say more.
Okay, I will.
Over the past couple of weeks, many (most ?) U.S. banks are “opposing” the resolution requiring winding down of NEW fossil fuel financing, citing other efforts to achieve net-zero by 2050.
In addition, Major U.S. banks are “removing” the Paris Agreement requirement that phase-out plans be aligned with the International Energy Agency’s 2050 net-zero scenario.
Citi Bank’s CEO recently stated “we simply don't yet have affordable alternatives at the scale and reliability that is required to move national economies off of fossil fuels.”
Apparently bank management and other executives see the light too, and are pulling their heads out….
So the struggle continues. And now is the right time to shine the light on these ‘back door’ attempts to prevent the use of fossil fuels by government fiat.
We have a presidential election coming up, so make this an issue. Instead of “Joe” doing it, let the voters decide. In this country it is still their right. So far, anyway.
Mrs. Smith
Just a bit of a change of topics. We are constantly being bombarded about needing EVs and renewable energy to combat “climate change”. As a supporter of oil and gas and Gulfslope Energy, there are a few comments I want to make on the subject.
I have heard a lot about climate change over the last 15 years or so. I have read much about the theory and the consequences. I have seen many politicians ranting about the end of our civilization if climate change is not addressed.
This is the same thing that used to be known as “global warming”, although that moniker was dropped when the globe failed to warm at the predicted rate. In fact, it got cooler. So the term evolved into climate change. Now it is not warming, only changing. How convenient.
So we are now stuck with climate change. They try to use weather to convince us the climate is changing, but not the same things. And we have all seen a lot of protests about climate change and why we need to turn our entire civilization and standard of living upside down to combat the effects before it destroys us.
But, the one thing we have not seen is any ‘PROOF’ that ‘man-made’ climate change actually exists. All we have are dire predictions based on political forecasts and demands that the progressives be given the power to save us from climate change.
“Sorry Charlie”, as my father says.
Lacking peer reviewed evidence that man-made climate change exists, and with no convincing arguments that the proposed solutions are the best approach, I feel I am being asked for too much commitment on only blind faith. Especially since I have little faith in the climate change cause. I will save the comments on ‘trust’ for a future post.
To completely change our country, our lifestyles, and our standard of living, based mostly on the political desires of one group of suspiciously manipulative politicians, is too large of a leap of faith for me.
No Sale.
Mrs. Smith
I am looking forward to OTC…. the convention. I will be the blonde with the ‘Smith199’ name tag. When I get near the Gulfslope booth, I will need to remove it. If John sees it, he might call security.
Let me know what day you will be there, and I will get an extra ticket. For safety’s sake, you might also consider not wearing a name tag.
I think I do hear that echo you mentioned, it must be just you and I here.
Mrs. Smith
Summer Oil Market Outlook - OPEC Featured Article 4/13/2023
In 1Q23, world oil demand is estimated to have grown by a healthy 2.1 mb/d y-o-y, on the back of a strong rebound in China’s oil demand, as well as solid oil demand data in other non-OECD regions, particularly the Middle East and Asia. Looking ahead, world oil demand is expected to grow by around 2.4 mb/d y-o-y in 2Q23, 2.5 mb/d y-o-y in 3Q23 and 2.3 mb/d y-o-y in 4Q23.
In terms of products, global demand for gasoline and diesel is forecast to increase by 0.6 mb/d and 0.5 mb/d, y-o-y, respectively, in 2Q23. In 3Q23, demand for these two products is forecast to improve further, with global gasoline demand growth forecast at 0.7 mb/d and diesel at 0.6 mb/d, y-o-y.
In the OECD, heightened mobility in the upcoming driving season in the US is expected to provide the usual additional demand for transportation fuels. However, any weakening in the economy on the back of ongoing monetary tightening measures by the US Fed may offset some of this seasonal dynamic. Overall, OECD Americas is forecast to lead demand growth in the region at an average of around 160 tb/d y-o-y in 2Q23 and 3Q23. The demand in OECD Europe is likely to continue to be challenged, amid slowing economic activity, leading to a slight projected y-o-y decline in 2Q23 and 3Q23 on average. OECD Asia Pacific is expected to show y-o-y growth of around 50 tb/d on average over 2Q23 and 3Q23.
In the non-OECD countries, China is projected to drive oil demand, supported by a pickup in mobility and industrial activity, growing by almost 1.0 mb/d y-o-y in 2Q23 and 0.8 mb/d y-o-y in 3Q23. Similarly, India oil demand is forecast to grow by 0.3 mb/d y-o-y, on average over 2Q23 and 3Q23. Other Asia and the Middle East are also expected to see healthy growth of between 0.3 mb/d-0.4 mb/d on average over 2Q23-3Q23, with requirements for air-conditioning in the summer months adding additional support.
It should be noted that potential challenges to global economic development include high inflation, monetary tightening, stability of financial markets and high sovereign, corporate and private debt levels.
On the refining side, intakes have been on a declining trend since the post pandemic high level seen in November 2022 at 80.8 mb/d. In addition, the start of heavy refinery maintenance around February further weighed on intakes in recent months with some 2.1 mb/d of capacity offline in February and 400 tb/d in March. Although US refiners have recently started returning online, ongoing strikes in France, and impending peak refinery maintenance in Asia are likely to keep intakes suppressed in the weeks ahead. Moreover, the impact of the recent reopening of China has still not been sufficient to reverse the declining trend in global refinery intakes.
On inventories, OECD commercial inventories have been building in recent months, and product balances are less tight than seen at the same time a year ago.
Given these uncertainties surrounding current oil market dynamics, several countries in the Declaration of Cooperation (DoC) have announced additional voluntary adjustments as of May 2023 and until the end of the year, and this was in support of the ongoing relentless and determined DoC effort to support the stability of the oil market.
Mrs. Smith
I am not a bonafide historian on the history of Exxon, but a while back I read an article that mentioned the “greatest” period of profitability growth for Exxon started during the depression era in 1931 and continued until about 1958.
I was not there to personally observe the sources for this growth, but perhaps it was partly due to investors of the time needing to find a safe investment that would pay a good return.
And just maybe things have not changed so much. Considering all the current stresses in the economy of today, would you rather invest in a new tech company or in a new energy company?
And I would point out that there have been many financial challenges over the past 100 years and most of the energy companies seem to have weathered them all and prospered.
The underinvestment in oil and gas energy over the recent past is now recognized by almost everyone and is considered to offer a multitude of unique global investment opportunities.
The GOM is going to be high on that list, and Gulfslope should get a close look by the principals searching for USA energy investments.
At this time, “steady as she goes” is the order of the day. After all, nautical terms seem appropriate for offshore use.
Mrs. Smith
There is that humor again. And thank you. Envy.
As far as equities, this is to be expected. We all knew this was coming. Very predictable with Joeflation and Bidenomics in play.
The effects on equities will be similar to the effects on other aspects of our economy. And the best remedy is a change of leadership, which in another few months should be assured.
But oil investments typically do better than many other equities in times of inflation, and financial managers know this. The industry, as a whole, will proceed ahead without being impeded and drillers will not be seriously obstructed. After all, in tough times, one must go where there is money to be made. And all of us here know of one good place.
I am a believer in the sentiment that “Frontier exploration is suddenly being reemphasized which will benefit the offshore industry” as quoted in the workboat.com article.
I am on my mark and set, waiting only for the command to “GO”….
I will see you at the finish line.
Mrs. Smith