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I was watching the Grimes debate
and wave was not saying the Hyrdoslotter/BIGN relationship had broken down, he/she was saying that the Grimes properties (leases)had been sold by BIGN. If BIGN has retained a working interest in the Grimes wells already drilled ( why sell all interest in a producing gas well?) and BIGN has retained/regained a business relationship with HSC through TYCHE, how was that incorrect? I wish Wave would comment more on this mystery.
None of the "comprehensive" PR's from BIGN in the last few months have mentioned Grimes or implied that BIGN owns "leases" there anymore. A working interest in a well does not require title interest in a lease or grant deed. IMHO, that is because they no longer had no leaseholds there. Wave was correct. But today's PR was artfully worded to read: "...Currently Biogenerics has Hydroslotter operating in Grimes, California. Although there have been delays with the wells, the issues causing the delays are unrelated to Hydroslotter technology..." BIGN "has Hydroslotter operating" in Grimes? What does that mean? It means that HSC is operating existing wells that we all know about and there are problems with one or more of those two wells...i.e. production is down. This mention does not address who now owns the lease rights but it does confirm a retained interest in Grimes.
But no matter, the ink is drying everywhere for BIGN's deals that are now executed as a result of the BOD meetng this week.
"SloMo"...Peak Oil,
I like it star!
A friend's chart:
coydog may call it the "mean streets",
I call it black and blue ducky.
Who let the dog out?
Mr. Whazoo, it was hidden out in the open...
we only need to wait for the ink to dry now...
You are very welcome, ckid
we only need to wait for the ink to dry now...
This PR was the green light
telling us that the financing and lease clearances are complete.
http://biz.yahoo.com/pz/070122/112241.html
We are very close to the next run up in the price of this stock. I am done buying this company and wait for the first ten bags to fill on the deals being executed.
After that, expect a series of revelations, each one establishing the value of the interlocking relationships between these companies, the synergies. The opportunities will be many and BIGN has cash and no debt. The second run will be the best of the two for the short term, IMHO.
Then I will sell some into the 2nd 10 bag run off of the series of PR's.
20 bags: that is the ST target that we hope to average into on this deal. After that, the production enhancements and profit numbers will determine the future of this company.
Geopolitical crisis will be the big unknown as this stock plays out. (See article below) Crude Oil above $60 will bring in more retail buyers. Oil above $70 will bring in the commercial buyers. Oil above $80 will bring in the speculative panic buyers.
The down side risk? Economic collapse of the United States of America.
My bet is placed, and may God bless America. Timing is everything. Stay the course for a few more days.
****************************************************************
http://www.marketoracle.co.uk/Article304.html
Crude oil is the key weapon in the battle between Saudi Arabia, Kuwait, and the UAE, aligned with the United States, against the “Oil Axis” of Iran, Russia, and Venezuela. The Persian Gulf Oil kingdoms fear the emergence of a Tehran-led axis linking Iran, Iraqi Shiites, Syria, Lebanon's Hezbollah, Palestinian Hamas in Gaza, and Islamic militants linked to al Qaeda trying to topple the Saudi royal family.
Earlier this month, Riyadh fired the first shot in the war against Iran, by knocking the price of crude oil to as low as $50 per barrel. The goal is to squeeze Iran's budget and wreck havoc on its economy, as much as possible, before the Ayatollahs can get their hands on the nuclear bomb. According to a Jan 24th report in the UK Telegraph, that indicated North Korea is helping Iran to prepare an underground nuclear test similar to the one Pyongyang carried out last year.
Under the terms of a new understanding between the two countries, the North Koreans have agreed to share all the data and information they received from their successful test last October with Teheran's nuclear scientists, to assist Teheran's preparations to conduct its own test, possibly by the end of this year.
audi All Share Index (SASI) closed below the 7,000 level
On January 24th, the Saudi All Share Index (SASI) closed below the 7,000 level for the first time in two years, and has yet to confirm a bottom. The specter of a nuclear armed Iran is sinking SASI, but we are also reminded that SASI has been a good leading indicator for the price of crude oil for the past three years. Saudi Arabian Oil Minister Ali al-Naimi said on Jan 24th, he aiming for moderate oil prices but did not give an actual price level which he considers to be moderate. Saudi Arabia's spare crude production capacity is set to rise to 3 million barrels per day (bpd) in February and could put a ceiling over crude oil, if it chooses to do so. In the event of an embargo on Iran's daily oil exports of 2.4 mil bpd, Riyadh could fill the gap from its spare capacity.
To counter the Saudi inspired plunge in oil prices, Iranian President Mahmoud Ahmadinejad proposed on Jan 21st, to cut the oil price on which the next Iranian budget is based to $33.70 per barrel for the year starting in March, compared with what he said was a price of $44.10 for the existing budget. “It is a signal to Iran's enemies saying we are ready and we will manage the country even if you lower the oil prices more. We assume our enemies want to damage us by decreasing the price of oil. So we must reduce our dependency on oil revenue,” Ahmadinejad said.
Iranian crude usually sells for about $7 a barrel less than US crude oil, so the drop in crude oil to $52 per barrel for WTI in New York last week, would wipe out Iran's budget surplus. Any further drop in world oil prices would force Tehran to dip into its foreign exchange reserves or seek loans from Beijing and the Kremlin, its stalwart allies, in order to maintain vital subsidies for its population.
Tehran spends $20 billion to $30 billion on heating oil and gasoline subsidies per year, costing the government roughly 15% of Iran's GDP. Ahmadinejad was elected promising to bring oil revenues to every family, eradicate poverty and tackle unemployment. But he has failed to meet those promises. Anticipating a possible US blockade of gasoline imports, Tehran will start rationing gasoline as of March 21st.
Venezuela's oil revenue added $50 billion to government coffers last year, financing about half of the country's budget, allowing kingpin Hugo Chavez to fund domestic subsidies and overseas aid to propagate his 21st-century socialism. Russia's energy exports finance about 30% of the government's budget and have transformed a country that partially defaulted on its foreign debt in 1998 into a creditor nation. Russia's foreign-currency reserves have expanded sixfold in four years to $303 billion.
The US Treasury has barred Iranian institutions from the US banking system, effectively cutting Iranian banks off from foreign exchange transactions in US dollars, which require a US counterparty bank. Because of US sanctions, Iran is looking to China and Russia to help develop its resources, and in exchange has promised to coordinate with Russia in marketing its natural gas to ensure that it does not loosen Russia's stranglehold over European markets.
US sanctions, Iran is looking to China and Russia to help develop its resources, and in exchange has promised
Tehran believes this strategy think will get them out of the box that the Saudis and the US are attempting to construct. China's national oil companies have secured $100 billion of agreements to develop Iran's huge oil and gas reserves.
The Specter of War hovers over the Middle East, Mohsen Rezai, secretary of Iran's Expediency Council, told the Dubai-based Al-Bayan newspaper on Jan 21st, “America will exploit sanctions against Iran to incite people to rise up against the Islamic revolution, provide aid to movements hostile to Iran, carry out operations inside Iran and promote a sectarian war. The next two months will show the world this strategy. An Iranian-US confrontation is inevitable,” he said.
Rezai would not rule out US missile strikes against Iran's nuclear installations. Ali Larijani, Iran's top nuclear negotiator, said in remarks on Jan 20th that Iranian armed forces were ready to face any threat to its nuclear installations, amid speculation Washington may be planning a military strike.
What about the outlook for Crude Oil? With renewed speculation of a US military strike against Iran or a gasoline embargo in the air, crude oil has hit rock bottom at $50 per barrel. Crude oil jumped $4 per barrel since the US Energy Department announced on Jan 23rd, a new push in the spring to fill the Strategic Petroleum Reserve with initial purchases of 11 million barrels. “In the spring, that is to say about two months from now, we will begin the fill. At current market prices we believe that we can purchase about 11 million barrels of oil over the course of a few months, so that would be approximately 100,000 barrels per day,” said Energy secretary Samuel Bodman said.
Crude oil jumped $4 per barrel since the US Energy Department announced on Jan 23rd
The 100,000 barrels per day to be added to the SPR in late March or early April only represents a 0.50% increase in daily US consumption, but was taken as a psychological signal, that Washington thinks crude oil is near a bottom. From a technical perspective, crude oil has stiff overhead resistance in the $56 /barrel area, from the Neckline of a “Head and Shoulders Top” pattern, and more resistance from a downward sloping trend-line which intersects around $58 per barrel.
Most H&S Top Patterns don't reach their downside objectives, and usually end up as bear traps. In other words, short-selling the crude oil market below $56 per barrel, might only be the fuel for a short squeeze to higher prices later on, especially if tension between the US and Iran heats up in the months ahead. Saudi attempts to put a lid on oil, might only allow a crude oil rally to start from a lower starting point.
Furthermore, gold traders appear to be convinced that crude oil has bottomed out at $50 per barrel and it's only matter of time, until shorts are squeezed. Given the enormous amount of global liquidity and super low interest rates in Japan and Switzerland, hedge funds might become buyers of crude oil in the weeks ahead.
Arab Oil kingdoms Shifting into Gold
Saber rattling by Iranians officials to the media, and test firing missiles in the Persian Gulf, are ultimately designed to raise the tension level in the world oil markets. Recognizing the high risk strategy of taking on Tehran thru economic means, jittery Saudi princes have been moving money from their local stock market into gold, British pounds, and US Treasury notes. The net result has been a 25% gold rally against the price of crude oil since Dec 15th, to a 3-year high of 12.2 barrels.
Arab Oil kingdoms Shifting into Gold
That's significant, because it means that gold is shaking off its worries about a weaker oil market. Still, lower oil prices should lower official G-7 inflation figures and confuse potential gold converts. The relative strength of gold will present a major dilemma for G-7 central bankers sometime in 2007, especially if bond markets begin to break-down from explosive money supply growth and rising gold and silver prices.
Global Money Supply out of Control, While crude oil has a major impact on inflation statistics churned out by governments, the gold market has shifted its primary focus to explosive money supply growth that is pumping up global stock markets. Central bankers have not raised their short term interest rates high enough to slow down the global money supply, which according to the Economist magazine, expanded an average 18% in 2006. In Japan, the central bank loan rate is absurdly low at 0.25%, while the Swiss National Bank's Libor target is only 2%.
“Markets show very strong risk appetite and risk premiums are very low,” said Swiss National Bank Chairman Jean-Pierre Roth on January 24th, warning market volatility would inevitably return, hurting investors. “My current thinking on the franc is that this is part of the exuberance in the financial markets,” he said
Baby step rate hikes by central banks have failed to rein in explosive money growth. In Australia, the M3 money supply is 13% higher from a year ago, British M4 is 13% higher, the Euro zone's M3 is 9.3% higher, a 16-year high, Korea's M3 is 10.3% higher, China's M2 is 16.9% higher, India's M3 is 20.5% higher, Russia's M2 is 45% higher, and the US M3 has been reconstructed to show 10.7% growth in 2006.
Global Money Supply out of Control, While crude oil has a major impact
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The great “paper chase” is on, but would an investor trying to stay ahead of monetary inflation be better off putting money into gold or a basket of Dow Jones Industrial shares? Both trading vehicles are good choices to stay ahead of expanding M3 growth, which is diluting the purchasing power of fiat currency For the past three and a half months, the DJI to Gold ratio has been locked in a tight sideways range between 18.8 oz's and 20.8 oz's.
In fact, during the DJI's last 1,000 point advance since September, Gold has also moved higher at an equal pace, thus the DJI to Gold ratio at 19.4 oz's, is unchanged from four months ago. If this stalemate pattern continues, a further advance for the DJI to the 13,000 level in the weeks ahead could also lift gold to as high as $675 per ounce, while keeping the DJI /Gold ratio steady.
The recent sharp drop in crude oil prices to $55 per barrel leaves US consumers with more money to spend, while they lower expenses for heavy fuel users, including big manufacturers and Dow Transport companies. That's positive news for US corporate profit growth, which helped stocks put in a strong performance last year. Cheaper fixed costs are welcome by corporate bond investors, too.
Lower oil prices can cushion the blow to an expected slowdown in S&P 500 profit growth of 8.2% for the fourth quarter, after about four and a half years of straight double-digit profit gains for S&P 500 companies, according to Standard & Poor's.
DJI is in a seven year bear market vs Gold,
So while Saudi Arabia keeps oil prices low to squeeze Tehran, Wall Street power brokers can drive the DJI higher, even when S&P 500 profit growth is slowing. But what would happen if crude oil prices suddenly surged above $60 per barrel or much higher due to fears of a military explosion in the Middle East? In the event of a US military strike on Iran's nuclear facilities and its oil refineries, or an embargo on Iranian oil exports, would gold or the DJI be a better investment?
The answer is elementary, so while the timing is uncertain, it pays to own Gold rather than the DJI, because when the fateful day arrives, a military strike will be complete surprise to Wall Street power brokers but not to gold bugs. In any case, one can still argue, that in hard money term, the DJI is in a seven year bear market vs Gold, highlighting the supreme importance of global liquidity and explosive money supply growth in lifting the DJI and other stock markets higher around the world.
Gold Shines in Tokyo as BoJ Buckles Under pressure,
Gold got a big boost last week, when the Bank of Japan succumbed to heavy political pressure from the Shinzo Abe government and voted 6-3 to leave its overnight loan rate unchanged at 0.25 percent. The BoJ is finding the radical inflationist Abe regime to be a much tougher opponent to tighter money, than its predecessor regime under Junichiro Koizumi.
It's doubtful that BoJ chief Toshiro Fukui could have drained 26 trillion yen from the banking system with Abe in power. Moreover, political pressure from the Abe regime to hold rates steady is not expected to abate and could even intensify ahead of an election for parliament's upper house in July. “We expect the BOJ to conduct monetary policy appropriately while keeping in close contact with the government,” said Chief Cabinet Secretary Yasuhisa Shiozaki on Jan 21st.
The final BoJ board vote was the closest in over three years and showed a marked shift from the 9-0 vote at the last meeting when rates were also held steady. One of the three hawks on the Bank of Japan Policy Board member Miyako Suda said on Jan 25th, the central bank needs to take certain risks in deciding monetary policy to prevent excessive stimulative effects in the economy.
“Since we are guiding monetary policy in a forward-looking manner we need to take certain risks, even if uncertainties remain in the outlook for the economy. Otherwise the timing of a rate hike may be delayed," Suda said. Still, the hawks are out numbered 2 to 1 at the BoJ, and the stench of dirty LDP politics hangs in the air.
Tokyo gold traders have little faith in the BoJ to maintain the purchasing power of the Japanese yen,
After climbing to a 5-year high of 0.57%, Japan's 3-month Libor rate plunged 14 basis points to 0.43% on January 25th, after the BoJ left its overnight rate unchanged at 0.25%. Tokyo gold climbed 8% towards 78,800 yen /oz, just 3% shy of an 18-year high. Tokyo gold traders have little faith in the BoJ to maintain the purchasing power of the Japanese yen, which fell to 9-year lows against the British pound, the Euro, and the Korean won, and down to a 4-year low against the US dollar.
Gold Bumping against 500 Euros /oz,
The European Central Bank is dragging its heels in containing the explosive growth of the Euro M3 money supply, which expanded at a 9.3% clip in December, it's fastest in 16-years. The 14% decline in crude oil prices in January is bound to exert downward pressure of European inflation statistics, buying the ECB more time, before contemplating another rate hike.
The ECB kept its key rate at 3.50% this month, without giving any clear guidance on the timing of its next likely move. “Lower oil prices could help ease Euro zone inflation pressures in 2007 but upward risks still prevail,” said Bundesbank chief Axel Weber on Jan 22nd. “There is potential for a slight relaxation in inflation for 2007, as long as the oil price remains permanently at the current lower level,” he said.
The ECB kept its key rate at 3.50% this month
“But I don't think that is the most likely outcome when I look at the futures markets, quite the opposite,” Weber noted. While the price of US light crude oil for February delivery is trading at $51.20 per barrel, the farther dated June contract is quoted above $55 /barrel. Still, the timing of Weber's hawkish jawboning was designed to turn back gold's rally from the psychological 500 Euros /oz level.
For now, the ECB can offer nothing but verbal threats to restrain gold bulls in Europe, who are squarely focused on the explosive M3 money supply growth. A surge in gold above 500 Euros /oz would force the ECB's hand, and make a quarter-point rate hike to 3.75% all but inevitable. While not specifically mentioning the gold price, which is foremost on his mind, Weber offers a diversion to explain his hawkish line.
“I fear that in the current economic environment, and given the political acceptance that wage increases have found at the moment that wage settlements could turn out stronger than we have assumed,” Weber said. German unions are seeking 5.5% more pay for construction workers this year and up to 6.5% more in the engineering industry, although official inflation in the Euro zone's biggest economy was just 1.4% in December. The gold market doesn't place much faith in such statistics.
“Monetary policy cannot wait until second-round effects materialize. We have to run a forward-looking monetary policy and orient ourselves based on what our expectations are,” he said. According to the Frankfurt futures market, the ECB is expected to hike its repo rate 0.25% to 3.75% in the first week of March.
Monetary policy cannot wait until second-round effects materialize
The ECB is walking a tight rope, between growing political pressure to halt its rate hike campaign, and fears about an upsurge in gold prices above 500 Euros /oz, which can undermine the European bond markets. In the end, the ECB is expected to continue lifting its repo rate, but at a slower pace than in H'2 of 2006. But a slower pace would make it more difficult to rein in the explosive growth of the M3 money supply.
Six baby-step ECB rate hikes to 3.50% have kept gold locked within a range of 450 to 500 euros /oz for the past six months, or 14% below its 2006 high of 565 euros /oz. European Gold bulls are waiting for the earliest signal that the ECB has run out of ammunition on the monetary front, and is getting ready to join the Federal Reserve, the Bank of Japan, and the Bank of Canada to sit on the sidelines.
The earliest date for the next ECB rate hike to 3.75%, which has a 140% probability according to the Frankfurt Euribor futures market, is the first week of March, still six weeks away. But such a long delayed manuever, is comparable to fighting pnuemonia with aspirin, and not likley to contain the explosive growth of the Euro money supply.
Learn how to Trade Elliott Waves
Gold Ready to Rumble higher from Down Under,
Gold is starting to break-out in Sydney, climbing above key horizontal resistance at 630 Aussie dollars /oz on Jan 25th. More importantly, Gold is busting out of an extended triangle pattern, which is typically a continuation pattern of the previous major trend, which is obviously Upward! Most interestingly, Gold is up 10% since the Bank of Australia's last rate hike to 6.25% in November.
The new RBA chief Glenn Stevens wanted to prove his mettle as an anti-inflation fighter,
The new RBA chief Glenn Stevens wanted to prove his mettle as an anti-inflation fighter, with a quick rate hike at the start his tenure. But in reality, Stevens has been busy feeding strong loan demand at home, with explosive growth of the Aussie M3 money supply. It's important to realize, that three RBA rate hikes to 6.25% last year, did not slow down the growth rate of the M3 money supply.
Aussie M3 soared to a three and a half year high of 13% growth in November
Instead, Aussie M3 soared to a three and a half year high of 13% growth in November, up from an annualized growth rate of 7.6% a year earlier. The RBA would have to lift its cash rate another 75 basis points to 7.00% to get control over M3. For now, the central bank is content to feed strong loan demand at home with injections of cash, which has been pumping the ASX-200 Index to dizzying heights.
The ASX-200 Index has doubled from four years ago, while gold has gained 45% against the Australian dollar. There is more at work behind the ASX's strength besides rapid money supply growth. Booming commodity prices, especially for base metals, uranium and gold, boosted Australia's mineral and energy exports to A$111 billion in 2006, up 20% from the A$92 billion in 2005, lifting profits for ASX-200 miners. Coal and iron ore lead Australia's resource exports.
By Gary Dorsch, Editor, Global Money Trends newsletter
Resolution of concern is near!
Very near.
Be prepared!
popcorn/Satori:
Thanks for the link. That about says it all, except:
As the triple bottom develops, it can start to resemble a number of patterns. Before the third low forms, the pattern may look like a double bottom. Three equal lows can also be found in a descending triangle or rectangle.
* Prior Trend: A downtrend or long trading range should be in place for Triple Bottom. Sometimes there will be a definitive downtrend to reverse. Other times the downtrend will fade away after many months of sideways trading.
* Three Lows: All three lows should be reasonably equivalent, well spaced and mark significant turning points.
* Volume: As the triple bottom develops, overall volume levels usually decline. Volume sometimes increases near the lows. After the third low, an expansion of volume on the advance and at the resistance breakout greatly reinforces the soundness of the pattern.
* Resistance Break: As with many other reversal patterns, the triple bottom is not complete until a resistance breakout. The highest point of the formation, which would be the highest of the intermittent highs, marks resistance.
* Resistance Turns Support: Broken resistance becomes potential support, and there is sometimes a test of this newfound support level with the first correction. Because the triple bottom is a long-term pattern, the test of newfound support may occur many months later.
* Price Target: The distance from the resistance breakout to lows can be measured and added to the resistance break for a price target. The longer the pattern develops, the more significant is the ultimate breakout. Triple bottoms that are 6 or more months in duration represent major bottoms and a price target is less likely to be effective.
I see a triple test of .01
Late October, early December and just recently:
Double and triple bottoms tend to be seen on charts as the base for a strong moves up.
Thank you, Pennimon:
Have you seen this new addition to the Tyche Website?
http://www.tycheenergy.com/relations.php
Beta test about one week ago: 2,000 shares CUSIP NUMBER
90212D 10 6
$4.00 per share was not free market price and it is well above the IPO Tranche 4 potential price to complete in a couple of months...unless there is some spectacular production news before then.
http://www.marketwatch.com/quotes/TYEG
One last link for your favorites list:
http://www.marketoracle.co.uk/Article211.html
You are what you eat. You think what you read.
Be selective, and think for yourselves.
Phantom messages from the past:
Not much has really changed, has it? But never short a dull market:
WWNG and WW Oil and Gas - hey people. Open your eyes, call the company. BIGN has a JV with WW Oil ad Gas 50-50. WWNG WW Energy is the parent company of WW Oil and Gas. We are ONLY involved with WW Oil and Gas. Read the news relating to Success Oil and the Crawer and Gray Gulch properties scheduled for workovers in September. This is huge for BIGN anfd nobody noticed. Success Oil is a turnkey drilling operator and has access to rigs and equipment much better than the standard lease agreement with Schlumberger. Yes the East Texas LOI is far better because if this deal closes we own 2 workover rigs and 1 drilling rig. Nothing could be better than that. So if the East Texas LOI falls thru, we still have the Success Oil WW Oil and Gas deal going. This is the backup plan that BIGN is ensuring is in place in the event the East Texas LOI falls thru. Just imagine if both happen, then we are truley making big money. Eash well at Crawer scheduled to begin in September will put 270K per month onto BIGN's income statement. They have 12 wells planned for workover. I cannot imagine why this news did not impact the PPS and BIGN PR out yesterday was in fact old news if you read the WWNG PR's it came out on 8/3. BIGN just reiterated the event yesterday because the stock was taking a beating and they needed to stop the selling showing management does care about the shareholders and PPS.
In reply to: fratboy72 who wrote msg# 11954
Date:8/10/2006 9:29:23 PM
Post #of 24330
Here is what Boyd told me. Take this as you wish and do not make any investment decisions based on what I post here. This is the truth, no fabrications here.
1. WW Oil&Gas is STILL a 50% owned subsidairy of BIGN. I even called WW Energy and confirmed that yes, WW Energy's subsidiary WW Oil&Gas is in fact owned by both companies jointly 50-50 Biognerics and WW Energy. That issue is put to rest. So any news out about WW Oil&Gas is 50% ours. Any news out on WW Energy is not ours.
2. Name change and quarterly report is on hold until the one or more of the LOI's close. They need to focus on getting the LOI's done. The frankfurt listing was important to attract new investors thus why they felt they needed that done at a minimum.
3. Some of the wells at Grimes are not workable with Hydroslotter but are workable with N20 thus why they closed that deal. For those who thought is was nothing but fluff it may turn out ti be a good thing.
4. The fifth well at Grimes is not going to be slotted because the siesmic data and tests have revealed it will not be a good producer.
5. Six more wells are being targeted at Grimes in the near future once wells 3-4 are done. These wells will require a pipeline to the meter station. Cost about 20K. All six wells have had seismic tests done already and show the same characteristics as Opheila.
6. Once wells 3-4 are done and are recorded as producers in the 1000mcfd range after "stabalization" we will have the following revenue. This will be disclosed publically as stated in the last press release.
Charring Cross 200mcfd
Andreotti 250mcfd
Opehila 1000mcfd
Well 3 10000mcfd
Well 4 1000mcfd
Do the math, considering 25 days of production per month for required maintenance at $7.50 NG prices, I come up with $3.1M in revenues for BIGN (40% allocation after ROI).
7. Financing is secured for the LOI in part by the cash generated from above. Debt based financing is being pursued here. No shares can be issued because the A/S is only 400M and the price is .021 Not much cash can come from shares as I agreed with Dale on this point. It would be silly to dilute at this price and Lancaster is not that stupid.
8. He said the Texas LOI is the big one that everyone as Biogenerics is hoping comes to reality. He said Lancaster feels confident the deal will close by 8/31 or sooner. He mentioned that 1 of the 3 options as outlined in the press release is a done deal. They have a backup plan to satisfy shareholders. The Success Oil Company LOI mentioned by WW Oil&Gas will offset any revenues not obtained from the Texas LOI deal option #1 falling through. In other words, if they do not go ahead with the best option, which was option #1 for the East Texas LOI and settle for one of the smaller options, option 2 and option 3, the WW Oil&Gas LOI i.e. Success Oil will offset any revenue lost from this deal falling through. Success Oil and a turnkey drilling operator but they must lease equipment and have rigs available to them on a more frequent basis then BIGN leasing rigs from Schlumberger. It seems that Lancaster has things covered here. Dale also said that option #1 is not ruled out and Lancaster feels confident it will happen and he said if option #1 closes BIGN will have rigs available to them on an immediate basis. He said this will be huge for the company. He said most companies must wait in upwards of six months now to obtain a workover rig due to the price of Oil.
9. He also said that Lancaster wanted to wait on wells 3-4 until after the LOI closes because the rig cost would not be incurred 60 day delay verse cost of lease...makes sense. However the financing required them to obtain this revenue as collateral so they went ahead and started slotting. This explains the delay from May until now. I agreed with him here but still balked on why nothing was done from January to May and basically was told Grimes has weather issues and it was difficult to get a rig to the site due to demand for rigs being high.
Overall it was a very positive conversation and I feel much better now about Lancaster and what he is doing here. The delays are explained in a stratgeic point of view and I understand now. Like everyone says a company cannot be built over night and after wells 3-4 are slotted this .02 cent stock will have over 3M in revenues. When the other six wells at Grimes are completed (probably within 6 months), BIGN will have another 5.4Min revenues to add to the 3M if they produce at 1000mcfd. 8.4M in revenues and we sit at .02 cents ?? Ridiculous consideration the market has given this little stock.
starboy: the geometry is changing again today:
"...shareholders of record as of January 2, 2007 will receive 1(one) WW Oil and Gas Inc. restricted common share for every 19(nineteen) Biogenerics shares held. The shares will be paid out on January 30, 2007. The special dividend shares will be mailed out to qualified shareholders of record without any action(s) required by eligible recipients." BIGN 12/22/06 Press Release
The geometry has changed once already:
"...shareholders to be paid 1 (one) Tyche Energy Inc. restricted share for every 30 (thirty) Biogenerics Ltd. shares held. Shares are payable March 24, 2006 to shareholders on record December 20, 2005." PR of 01/20/06 and "the new record date for the Special Dividend will be on May 19, 2006 with a payment date of June 2, 2006." 05/03/06 PR
The Geometry could change again in the future as to Royal Pet. Co.:
Oct 20, 2005 10:30:10 AM
TORONTO, Oct 20, 2005 (PRIMEZONE via COMTEX) --
Biogenerics Limited (Pink Sheets:BIGN) is pleased to announce that it is currently finalizing arrangements, and expects to soon commence trading BIGN in Europe via an exchange listing in the United Kingdom... In addition, Biogeneric's management reiterated the impact of this Tuesday's Press Release whereby Royal Petroleum has agreed to provide traditional debt-based financing for Biogeneric's upcoming schedule of oil and gas re-completion projects. Terms announced for the financing include an 8.5% credit facility to support wellhead completion expenses for hydroslotting, secured by current cash flow of the Company's existing portfolio of producing oil & gas properties. Biogeneric's Paul Smith stated, "This is tremendous news for the company and for our shareholders. The Company already has well over $1 million in reserve cash on its balance sheet to support our current hydroslotting schedule, which we knew was going to allow us to leverage our growth without raising additional equity financing and diluting our capital structure. The credit facility we have now put in place with Royal Petroleum is going to allow the Company to step to the plate with an even more aggressive re-completion schedule on a non-dilutive basis, and provides the catalyst for us to hyper-grow the Company's resource production and income streams. Over the past 6 months, we have been aggressively locating and securing additional dormant energy properties that fit the hydroslotter criteria for re-development. Now that the company has secured an almost inexhaustible 'war chest' to bring the remainder of our existing, as well as target properties into production, our growth will now only be limited by how quickly we are able secure new properties, move hydroslotter equipment to the sites, and commence re-completion operations."...
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Why are BIGN shareholders getting these shares in Tyche and WWO&G?
WWO&G: BIGN's interest in WWO&G came to light on August 23, 2006:
TYLER, Texas, Aug 23, 2006 (PRIMEZONE via COMTEX News Network) --
Biogenerics Limited (Pink Sheets:BIGN) announced that WW Oil & Gas Inc. has signed a letter of intent and forwarded a initial deposit to acquire the oil and gas lease rights to properties located in East Texas. Biogenerics Limited shares a 50% interest with WW Oil & Gas Inc.
TYCHE:
2004.12.08 - 2021877 Ontario Inc. name change
TORONTO, Dec 8, 2004 (BUSINESS WIRE) -- Biogenerics Inc. (the Company), (OTC:BIGN) announces that 2021877 Ontario Inc. will file Articles of Amendment to change the name of the company to Tyche Energy Inc.
Tyche Energy Inc. has advised the Company that it plans to drill an exploratory well on a new Silurian sandstone play in Southwestern Ontario. Recent developments in this play have led to the discovery and development of a significant gas reservoir exceeding 10 bcf recoverable sweet gas reserves. Flow rates from wells completed within the "type" reservoir had initial flow rates in the 2 to 4 mmcf/d range.
Drilling of the previously announced development well at the Charring Cross project has been deferred and negotiations are under way to pool lands necessary to create a production spacing unit for the RPI #7 Harwich 1-1-18-IV WCR well. This well tested gas at a stabilized rate of 465 mcf/d from a shallow Devonian reservoir. Construction of a sales gas pipeline at the Charring Cross project is nearing completion. Engineering design and sourcing of sweetening facility necessary to deliver pipeline quality sales gas is currently under review.
Eric David & Sons Interview
With Jean Claude Bonhomme Of Ontario Inc.
Eric David & Sons:
Can you explain exactly how Biogenerics will profit from the assets acquired from Ontario Inc.?
Claude Bonhomme: Biogenerics will profit by receiving an interest in the oil and gas property that we are developing. In other words, when they put up money they will get their money back from the production we are able to get. Secondly, they will retain a percentage interest from the on-going production. Let us say that a well produces for example $20,000 a month and we spend $60,000 in developing the well. They will receive that money firstly, the $60,000 they put up. Then they will retain an interest in the on-going production for as long as the well produces, for five, ten years, whatever the term it will be able to produce.
EDS: Once the oil field is completely utilized, will it produce enough to effect oil and gas prices?
CB: No. There are millions and millions of barrels of oil and cubic feet of gas being produced by major companies. We would have to be like a Texaco or a Petro Canada or Esso to have any effect on the gas or oil prices.
EDS: Where are the wells located? Are they on land or in the water?
CB: The majority of the wells are on land. We have some locations and we have an interest in some leases that are off shore, but we do not drill on the water. We drill from on shore and drill in horizontal wells. We take a location on shore and access those reserves by drilling underneath the lake at a horizontal basis so that we can get access to them without creating a problem of pollution or anything on surface of the water.
EDS: Does Ontario Inc. have in place any procedures or special measures to protect the environment? Have there been any problems with the locals or environmentalists in the past?
CB: No, we have not had any problems with the environmentalists in the past. In Ontario, there are strict procedures that we have to follow to protect the environment. Besides that, we have drilling insurance in case something does happen so that we do not get into any problems financially if there is a problem, it might happen. There could be an accident no one is perfect, but we are well protected with insurance. Secondly, we follow all of the rules and regulations that are applicable to the environment in compliance with the Ontario Natural Resource Department. They have certain policies and procedures that have to be followed and we do. If we did not they would shut us down.
EDS: Does Biogenerics hold a seat on the board at Ontario Inc. and do they hold any of the companies stock in addition to the assets?
CB: Yes, they do. [And] They have an interest directly in the stock of Ontario Inc.
EDS: What other companies are Biogenerics currently investing in and are there any other contracts in the works?
CB: There is a contract in the works that has not been made public yet. It is concerning a new technology to improve secondary recovery production in wells. It has been tested already and has been successful. Now we are going to elaborate further and develop more wells to prove that the technology does work in more than one location. We have tried it in California and Kansas and it worked. Now we are coming to New York to see if it will work there. If it does work then we know that we have something quite substantial.
EDS: How many shares are outstanding and how many are in the public trade-able float?
CB: There are thirty million shares out. There is a ten million share float.
EDS: How many shares do insiders hold?
CB: Company insiders hold nine million shares.
EDS: When will the company report audited financials and move to another exchange?
CB: The target is to have their first audited report on September 30, 2005. That is when they plan to move to another exchange. If things progress faster, which could be, if we get very successful with this drilling and this new technology we are developing, we could accelerate that. Right now that is when it is planned.
EDS: How will the company finance current and future investments?
CB: The company is financing by private placement, by venture loans, and by the current cash flow they are getting through these wells.
EDS: What industries will the company be focusing on for 2005?
CB: The industry will be mainly in the resource energy projects. In other words, anything related to oil and gas and technology related to oil and gas production.
Interview conducted by Kristin Huffner, an Independent Consultant for Eric David & Sons. November 29, 2004.
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Are TYCHE, ROYAL and BIGN just JV partners?
Who might merge and/or acquire whom?
More than half of BIGN's shares are still in its treasury. Control of BIGN is there for the taking. Meanwhile, BIGN keeps spinning off its TYCHE and WWO&G assets to CURRENT shareholders. Have you ever wondered who the majority are that owns the current OUTSTANDING SHARES? Why, I bet it is the venture capitalists who started this company! And so they are giving themselves stock gifts as well as the publis share holders.
From the BIGN website:
We invest in two things: People and true Intellectual Property. With these two components in place, we can help you build your company.
We make decisions quickly and act on them quickly.
When we receive a business plan, we review it, and if we share your vision, we'll contact you to arrange a meeting to discuss the plan in detail and get to know each of your team members. If we reach a sense of business and personal synergy over a few meetings, we'll discuss the terms of investment, and produce a draft term sheet. We like simple structures that are fair to all parties concerned.
We then perform due diligence, evaluating the market, the products or services, the competition and the strategy, in order to develop an in-depth understanding of the business dynamics. We'll check references, and talk to customers and other industry sources.
In parallel with due diligence, we'll start the legal process, and unless significant problems arise, we'll finalize the terms of investment - often within 30 to 60 days of our first meeting.
We want to be the first professional money to invest in your company, and typically take a 20-40% equity stake. This gives us significant influence, but not control, in the company. We usually want a seat on the Board, and full access to company records and information. We're non-invasive, but we're not passive money partners. A good sense of chemistry between Biogenerics and our prospective investees is a crucial factor in whether or not we become partners.
Thank you very much, opp
we always appreciate cheap shares in an open market. And thank you too, UBSS! Good luck buying them back at .005, if you ever can. That might be very smart, if you can do it.
This is the move before THE MOVE, in my opinion. I have no idea how long the higher negative volume will last, but when it ends, it might be fortunate to be long BIGN and not "pickin' cotton", IMHO.
Now let me tell you a story:
A former Tennessee legislator turned Oklahoma wildcatter, Columbus Marion "Dad" Joiner, a man in his 60s, was broke and depressed when he went to sleep along a seawall in Galveston one night in 1926 and had a vision that he would find the biggest oil field in the world in East Texas. When he awoke, he sketched the topography of the place he saw in his dream. He later walked and hitchhiked his way to Rusk County and believed he had found that visionary place on Daisy Bradford's land.
"She leased him the land and he drilled three wells and the third one finally came in (Opp, patience pays some times) -- and it was the biggest oil field in the world," said Joe White, director of the East Texas Oil Museum. "As a historian, I realize that sounds like a tall Texas tale, but the proof's in the pudding, and it came true."
Joiner's fantasy became reality on Oct. 3, 1930. According to an article White wrote for the East Texas Historical Journal in 1968, word had spread that Joiner was going to bring the well in, and people from miles around converged on the Bradford farm to witness the occasion.
"On Friday night, Oct. 3, the No. 3 Daisy Bradford came in sending a stream of oil over the crown block, while several thousand spectators looked on," White wrote.
A witness described how "all of a sudden we heard a low rumble from beneath us." Officials at the scene told spectators to get off the platform and put out their cigarettes.
"We had hardly gotten off the platform when oil began to gush out of the hole," Mrs Jimmy Harris of Henderson said in White's article. "Suddenly oil blew over the top."
Almost 75 years after the historic discovery, the Texas Alliance of Energy Producers plans to honour Joiner and Ms Bradford as a part of the East Texas Oil Legends Luncheon. State Sen. Kevin Eltife, R-Tyler, is set to be the master of ceremonies at the luncheon, which is a prelude to a host of activities slated across East Texas for the 75th anniversary of the discovery.
"Why would he (Joiner) be a legend?" White asked rhetorically. "Well, he did something no one else ever did, and that was find the biggest oil field in the world in East Texas. That discovery went against every belief that the major oil companies had. The major oil companies just did not believe there was oil in commercial quantities here in East Texas. There had been 17 dry holes drilled going back to 1911. So in the face of all of that, Joiner persisted, and there were those like Daisy Bradford and others who believed and stayed with him and watched him succeed."
Joiner helped "dramatically change" the life and lifestyles of East Texas, which, before the discovery, was mainly a rural agricultural area, White said.
"With the oil boom, communities like Kilgore grew into small cities and incorporated and formed city governments; people were asked to pay taxes to build new schools," he said. "That meant opportunities for young people to get out of college and come back to their homes to teach. It gave birth to a community called Joinerville -- Tyler became the business centre for the East Texas oil field."
He said major oil companies set up their offices and headquarters in Tyler, which meant opportunities for engineers, geologists, accountants, attorneys and land men, and meant there would be jobs for women to type and take shorthand.
"Otherwise they might well still have been on a farm helping dad milk the cows and mom churn butter," White said. "It literally changed East Texas."
At that time, farmers in East Texas "had been hurtin' for a long time, and it wasn't going to get any better," White said. "That's the reason so many people supported Joiner when he came in with this dream that he would find the biggest oil field in the world," he said.
"That's the reason Daisy Bradford gave him the lease. That's the reason Leota Tucker moved her family out to the well when school let out and lived in a tent... They believed in the dream. This wasn't just something -- 'good if it does, and no big deal ifit doesn't' -- this was the future.”
"It just dramatically impacted the whole region."
Winter Elder, a lifelong resident of Kilgore who is now 89 years old, recalls the boom days that followed in the years after Joiner's and others' discoveries in the East Texas Oil Field.
"It was a wild time," Ms Elder said. "Our lifestyle changed more than anything else. We were short of money -- it was during the Depression... (After the boom) money was coming in, and we were tickled to death to get it." As she thinks back on that time, her memories are of the influx of people who came to East Texas.
"We were just smothered with people," she said. "We didn't have anywhere to put them."
Helen "Pudge" Griffin, who was a child at the time of the oil boom and living in Longview, said that she remembers how people came "in droves" to Longview, Kilgore, Henderson and other cities and communities in the area.
"It was just covered with people, and there wasn't any place for them to live, so a lot of them lived in tents... and slept under newspapers right at first," she said. "The Depression was on, and they didn't have any work, so they all came to East Texas to find work... We weren't the little sleepy towns we'd been."
Ms Griffin, who now lives in Kilgore, said she tries to think about what her life would have been like if she had not lived in the oil field.
"It would have been quite different," she said. "We wouldn't have had the good things that have come from it. I think first of Kilgore College, about how it has helped so many people who would not have had an opportunity for education. I had cousins that lived in other parts of Texas and they didn't have all these opportunities that we've had."
An oral history exhibit at the oil museum includes recordings of people's memories from the oil boom.
Errett Hale, who lived near the Bradford farm, gave his account of what happened soon after the Bradford well came in as part of the exhibit.
"The day after that well came in, my dad and I were picking cotton... Hale said. "We were able to drive possibly a half a mile from it. There were so many people and cars down there that we had to walk the rest of the way. We didn't see any oil flowing from the well, but there was oil on the wooden derrick and all on the ground out there and people were all excited... (When it) came in everybody was happy. We didn't think we'd have to raise any more cotton and pick any more cotton."
In addition to the effect the discovery had on the region, it seems the oil field had an impact on the entire country. According to information from the museum, the 42-mile-long East Texas Oil Field produced more oil during World War II than the Axis Powers combined.
The six largest known fields in the world at that time would have fit within the perimeter of the East Texas Oil Field. It was the largest oil field in the world at the time of its discovery -- just like Joiner dreamed.
Source: Tyler Morning Telegraph
eatmenasdaq- many think oil is at a significant bottom:
http://www.247wallst.com/2007/01/after_a_40_drop.html
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5D2FB9AE-1176-4AEB-A0C3-7AB81835F322%7D&....
http://www.marketoracle.co.uk/Article211.html
r7315- "cash cows" take forever
and "forever" ends in a couple of weeks. Frankly, I wish there were more time to accumulate. Last week was a gift. Soon, the ink will be drying. Then, the only concern will be how wisely we spend the 4 million dollars.
I can hold this stock until this time next year as long a Jim makes his next move wisely. A new "oil company" must be very wise. They will have more than a dozen deals/opportunities offered each month across their desk, and very few would pay off enough to make stockholders happy. I want my brother and sister stockholders to be very happy in the weeks and months after the initial excitement.
futrcash: your "well enhancement technologies"
in East Texas:
http://www.osti.gov/bridge/servlets/purl/827040-Y6pTzG/native/827040.pdf
There are new and better products coming to market to attack asphaltene and paraffin blockages. These products are not too expensive when pumped down old well bores. Woodbine and related zones previously thought to be unprofitable-by passed- in East Texas are now quite profitable, even with Crude at $50 odd dollars. The new technologies can be discussed in more detail later. There is money to be made in "picks and shovels" too, not just "black gold".
Remember the example in the last BIGN PR: "...an existing active well, which was producing 3 bbls/oil/day, was re-completed at the lower pay zone and is now producing over 45 bbls/day, increasing production by over 1,200 bbls/oil/month..." Run those numbers into dollars and multiply by 200 or 300. It applies to LA. as well as TX. Well enhancing technologies can keep these re-worked wells productive just as well as old wells treated at current well depths to increase production.
The BIGN delay in closing the East/West Texas LOI has been very favorable for BIGN. The deal is becoming more affordable and therefore it is being enlarged as mentioned in the last PR! Look at the price of Crude Oil. Listen to the "so called experts" on Blumberg and CNBC, saying it will go to $40. These are the same people who said it would go to $100. In truth, BIGN has been at the right place and at the right time. Yet there are those shareholders who piss and moan here.
To those negative posters here, I say, "sell me your shares".
I wait at the bid price. I can wait longer than you can. So make it easy on us both, sell tomorrow...or a month from now.
http://en.wikipedia.org/wiki/Peak_oil
Time is on the Oil Bulls' side!
You are quite welcome, popcorn
My friends and I are accumulating BIGN at the bid whenever possible. We are in no hurry. We hope to make money selling properties to BIGN- properties owned well before 2003,onetimebaby- and then by owning its stock as long as it conducts business honestly and intelligently. End of story.
About that 01/11/07 BIGN Press Release:
Has anyone wondered what they were talking about when the PR stated this:
"...Part of this transaction will include future well sites for offset drilling production on the current leases involving the Lower Stringer and Main Woodbine/Ashe Stringer zones...."
The conventional approach to operations of the marginal wells in the East Texas Field has been to pump at higher rates as the oil percentage drops. Across the field the wells are progressively becoming uneconomic because of water encroachment and this issue was a prime consideration in the project. Basically the objective of this task was to improve the decision making process about whether to abandon wells or purchase larger production capabilities.
Pumping nearby wells with conventional pumping units indicated that the total "fluid production" for this area may be limited to the 100 to 200 barrels per day range. A submersible pump would provide pumping capacity of over 1000 barrels of fluid per day,
but obviously would be excess capacity and non-economic at present. Discussions with DOE allowed a modification. An alternative to increasing oil production from potentially
productive zones by increasing volume while maintaining oil percent, is to increase oil percent of the existing producing capability.
Schlumberger was contracted to set a bridge plug in the No. 1 well to isolate the target zone at the top of the Woodbine from two sets of perforations in the lower Woodbine. New perforations were shot in the upper zone at the interval computing saturations or 50% or greater.
The well immediately was producing approximately 3 BOPD and this continued to the end of the grant period. It is anticipated that oil content will increase as the fluid level in the borehole declines. This zone is one that was originally produced as an open hole when the well was drilled. The operator set a liner in the well in 1975 when the production was uneconomic for the current prices. The deeper sand zones often referred to as the “lower stringer” were opened to production (3714’ – 3768’) and the upper Woodbine was left isolated from production behind the liner. This project identified that residual oil was still present in significant quantity and tested this observation by opening the behind pipe reserve to production.
http://72.14.253.104/search?q=cache:paQRE-noVYQJ:www.osti.gov/bridge/servlets/purl/834361-zWx03R/nat....
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