Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Hoping these high sells are people taking their shares off the table for the shorters. I have bought 250 k more today. Feeling good about this.
Two quick things. They don't truck out water. They would drill an injection well to pump the water back into the ground. Trucking would be extremely expensive.
Drilling this well 250 ft lower isn't necessarily better, as oil floats on top of water. When this well is tapped out the other well will mostly still be pumping oil.
The good new here is that zlus's well will be able to use the existing injection well. The bad news is they pretended like this was a big deal with this oil discovery. In reality the odds of hitting oil were 85 to 90 percent since there is a producing well a football field and a half away.
These foreclosed Wells people are talking about are literally a sad joke being played on them. Why would a well get foreclosed on? Because it has no oil. Or so much water and litt7le oil that its not worth it. Since banks are not in the habit of operating and maintaining Wells, good or bad, they would sell them as fast as they could. People would have already bought them if they produced.
But the rainbolt family has secret connections for forclosed Wells for zlus to buy. Instead of buying them privately and rolling in the dough, they are allowing zlus to get involved here. They learned the secret to buying old foreclosed houses and oil Wells frrm a late night infomercial that allowed them to quit their nowhere jobs and become rich working from home. The American dream!
How much does zlus own on the well 150 yards away? The likelihood that the ownership percentages will be equal or very close is very good. Agree?
Also, two pay zones don't mean two different oil targets. It usually means that there is hard non porous rock formations in the middle of an oil target that can be reached on the top of that formation as well ad the bottom. It dosent mean they will get 2 times more oil.
You would like that. But so would I and I'm long. I am buying what I can afford right now and if it gets less than a penny I will borrow some to buy more. Not usually a smart move in pennys. Good luck to you.
Completing a well takes different amounts of time. Completion can be hurried if oil prospects are abundant. If they tested it and thought that they would get 500 or 200 or 100 bpd then they would pay large sums of money for completion crew to move in and get the ball rolling.
If they are trying to conserve money because the well will not be a large producer, then they wait for the cheapest rig they can find. Sometimes that means waiting a few weeks for it to get done on another project(s).
They still have to move tanks in, set up pipeline and injection well, move in unit, and do some more testing to get the well stroking at the correct pace. It could be weeks or months to hear at this rate.
If this well is situated just next to an existing one, then they can use the same tanks and well so that will save time and money, also will be seeing results much quicker. This is actually the one to not hope for, as it means the production figures will not be red hot.
I have waited for up to two months for a completion and as little as two weeks. Just depends on the weather, scheduling of contractors, projected revenues, ect.. Sometimes everything can be all ready to go and you have to wait for power to be hooked up - the electric company in some places is very inefficient and they dont care about your production.
Hope to hear some news soon to see who's guesses have been right. Good day
Lets all just assume the o/s is 500 million. Now what are you going to do?
They have a property situated right next to an existing multi-billion dollar mining company actively producing. They have hired a top mining lawyer. They have drilled for sampling, and are in the process of having it expertly examined. They are paying bills that they owed from year(s) past when they took in zero dollars. People that were working for free, that still work there and would like compensated.
Do you sell, buy, or hold this stock?
Simple as that.
This is a very small company trying to compete in a very expensive business. Some things take time to do, especially if saving money is a issue. If you have no patience this may not be the stock for you.
The news people keep wishing for will lower the stock price. Not raise it. Read my posts to see why.
This is not a sprint, or a quick flip. Todays news wasnt great, so we will be sideways or down. I appreciate the fact that they are communicating and not pumping up the situation with artificial expectations.
I thought that I had all the shares I needed, but will buy more at these levels. With REAL news, which we can expect in a few weeks or so, we will move. Flippers will start to get anxious and may be selling off shares. I will be there to buy them.
Think they just nailed someones stop sell at .016. Huge volume spike. I picked up 150k at .0161. I hope to sell them next month for 5 to ten times that.
That was a long way of not saying much at all. I honestly appreciate the offer to help me where I've gone wrong in my assumptions but will respectly decline.
Ask yourself this - what is stopping anyone from drilling completing and establishing 60 Wells? Money and luck. What I'm saying is that zlus will need a large supply of both to accomplish this. Since it will take 9 to 18 months to get their money back on this well (here is where my industry knowledge comes in), the time table to drill the remaining 60 Wells is quite large. They might as well say they will be acquiring 200. Both are great but too lofty of goals.
Even with 3d seismic charting and the smartest geologists the odds of hitting a new target are very small. One in four to one in seven or sometimes more. This odds of hitting a completion well in the same proximity of an existing well are much better but the barrels per day will be much lower because it targets the same oil targets. I believe, my opinion, that this well is just one of many completion Wells within a small area. This is misleading to novices for a variety of reasons. We wont know until they tell us what they are able to extract per day. My biggest issue with the company is that they know how much working interest they own and have a good estimate of what it will produce per day. They say they don't quite know and are still working out those details. This also is where my prior experience tells me, without a doubt, that they are lying. The question is why?
My last issue you ignored is that they are not personally drilling the well. If You didn't know much about the process you would miss this detail. They are not the landowner and they are not the contractor or operator. They had no say in how it was selected, drilled, or anything at all. They simply signed on to an existing project and paid their way for the lowest form of interest you can own.
I can also assure you that they would have the well completed and operational if they expected 50 or 100 bbpd like some on here are guessing. Jan 3rd they were moving in completion unit to lay casing. These large production numbers would warrant the crews to work 24 hours a day, very common in any part of the country, for extra money to finish within a matter of days.
They would be losing 4 to 8 k per day at these projection figure by waiting this long.
I understand that private oil projects are different than public ones. I have simply used my backgroung to fill in some on here. Whether you are drilling in Alaska or Arkansas the process is very similar.
Final thought is on the foreclosed Wells they are possibly buying. Really? Anyone and everyone would have snatched these up years ago if they were worth having - provided they don't have some secret connection. The price of oil has been high for some time, touching around 150 a barrel a few years ago. If they made money they wouldn't exist. The bank would have no reason to take back a well if it made money. What is a bank going to do with a well besides sell it? This is just using your head. Finding a good existing well that has been forecslosed would be like finding a needle in a haystack.
Bill of sale? Do you mean the recording deed? You are good at cutting and pasting but less than qualified to dissect it for us. This isn't a shoe purchase at target, this is a transfer of ownership and land rights.
Kind if like how you said the police couldn't seem to find the necessary names on the paperwork and were investigating. This is so fake I couldn't believe it.
Just because You can't find a deed to something that doesn't mean it doesn't exist. Sometimes the title company can't find them for closing purposes in my business. The county court house women take a few hours to find it sometimes. Sometimes th ey dont all get transferred electronically. These theories are getting absured .
To say you can't find it therefore it dosente exist is plain silly.
I am not a downer. Just down on this stock. Don't get me wrong, I love oil. I believe the price is headed up and will stay for a while. I spend a lot of my money on new drills, its an exciting business. Where else can you get checks for 20 years sent to you for doing nothing. Contrary to what buccaneer says on here I have some good Wells along with some less profitable.
Some make a ton of money and some do ok. That's why you need production numbers to go along with the pumping not just the fact that they found oil. How much and how much they own are significant unknowns here - known to the company just not to us.
I will apologize if I'm wrong to everyone very quickly. Then cry myself to sleep for days. Not really because with the amount of money I can get for 3k in private oil projects versus this stock is no comparison.
You can read more about this on the aultra board, apparently there were more than one ticket. Its looking like there were possibly upwards of three.
ND and I are in the process of waiting on some info from the Clerk of Court Humboult County, and are just chomping at the bit to "get to the bottom of this".
Since ZLUS only has working interest in the well, it would be unlikely that they would be given the opportunity to buy in the exact same interest in the next wells targeting the same ground reserves.
The overriding royalty and royalty interest holders usually have more of an option to purchase more interest if they choose. This depends on the situation and particular well. If the area was producing 100 bbpd then ZLUS or the landowners would edge the shareholders out bit by bit.
The odds of drilling 60 wells and hitting them all are astronomical. You also have to pay for each well, this comes out of the existing well proceeds. Average time to pay off a well in that area is 9 months to 18 months. Calling 50 barrels a day a low guess is poor projecting. 100 barrels is just silly for the area. These numbers are way out of line.
I dont feel like you have done any DD at all, since these numbers are purely guesses thrown together at random, with some numbers injected into them. They are misleading to people not knowledgeable in oil operations.
I am excited to see the percentage ZLUS has in the well and what it produces per day. I will gladly apologize for my low projections that it will produce 18-26 bbpd and ZLUS will own less than 60%.
Until the company gives us the numbers then we will just have to argue and guess, which is part of the fun of penny stock speculating. My chart says sell. Look for re-entry at .0028 plus or minus .0002.
I have limit buys in one tenth cent increments to .009 just in case of high dilution numbers and a bear raid or some tricks like yesterday's. They are diluting for a reason and when they announce something big I want to be loaded with shares. Been considering flipping some new shares but its hard when I believe that a huge jump is around the corner. Holding tight and looking to add here.
I'm not worried but a bit annoyed at the delay. I think they have positive news they are wanting to couple with the new OS.
Not an expert at all if you will read my posts. Its with my novice oil experience that I'm able to pick out serious flaws with the PR and with this stock. Good luck with it though, when they are done diluting and put out the PR saying how much they own and production levels per day it will be too late.
You arent giving any reasons, therefore there is no reason to listen to you. Chartwise, this is headed south, and unless there is some secret event that is going to propell the pps in the near future, your pumping makes no sense.
This had its run in November, and now people are looking to exit. Telling people to buy and hold for a later date is not effective. Who would listen to this?
Assume the 50 bbpd figure is accurate. which it isnt, and that ZLUS own 75% in working interest, which they dont. I could explain why they wont take that much oil from the ground and why they will reveal that they own considerably less than 75 percent, but no one wants to hear it here.
That would net around a million a year. A million divided by a billion is .001. That is assuming they havent diluted any shares since their last figure of approx. 1 billion AS. They have an OS os 1,5 billion so there is no telling how many more shares have been diluted since.
You dont multiply earnings by 7 or 10 or 15 in the case of this company even though it is a penny stock. This is because the amount of oil that comes from a well drops off exponentially after the first year. Yes, they will drill more wells after this one but they will produce even less because they will be targeting the same oil.
This is a good flipping stock for now, just dont be caught with too much when they come out with how much they own and how much the well produces per day. Even though I know this is a horrible company I have bought and sold a few times in the last two weeks. A game of musical chairs now with the loser at the end still holding their shares.
I love it when these guys pretend that all shorting is done by the book. That the market makers are so ethical they would never trade with a naked short position, which would never show up on reg sho.
When they announce drilling results you will see some chasing from shorts and longs to get back in.
Gettin' a lot of laughs with this hilarious post!
The oil buyers come around to the well sites and pick the oil up for free? The oil buyers? That's how they do it in that part of the country?
You need to do some research on the process, like I said its very simple and not much has changed in a hundred years other than some equipment technology. You are just responding to my points blindly and leading other investors down the wrong path.
Unless you have a pipeline, which they don't, you pay for the transport to the refinery. They are the "oil buyers". This is a cost you can't get away from. No individual people are going to buy the oil and take it with them and pay the market rate.
Is there an update yet? I can't figure which part of the website will have it. Thanks
That part of the country averages a year to 18 months to pay off your investment totally. Alaska Canada or parts of Wyoming can be as early as 2 to 4 months.
Wells are not free money either once they hit oil. If they don't have enough or good enough gas coming from them - ZLUS's well has little to none they stated - they require a fair amount of electricity to operate. Then you pay to transport it off. Plus any problems that need fixed. No real cost savings for ZLUS on that one because they aren't the operators.
Crusher - good find, although I am pretty sure it was brought up extensively after the PR came out, it just hasnt been updated in the ibox. OTCmarkets will be updated quarterly, and Im sure that the number will be higher than 298 mil at that time.
The A/S is 500 million, and if they need to dilute another 200 million to begin mining operations or to fund a JV and get the ball rolling, then so be it.
There are many many other penny stock miners with higher O/S than we have that are not currently mining but have a higher pps. Cotton mining has been moving this week to almost 2 cents - they have an OS and AS of 10 billion. Ten Billion. 20 times more than we have.
Also slamming the company's Facebook page is a nice touch. The geologist website is also irrelevant. Everyone can see right through your attempts.
DD? what for? They found oil!!! They wont tell us how much or what percentage of the well they own, but thats irrelevant. They found oil!! Gas could be $5.00 a gallon I heard on the local news!
Just think - they have one, then they could have two, and then 3, 4, 5, 50, 100 wells going and could be producing upwards of 500,000 bbpd! That 50 million per day in revenues. Exxon will want to scoop this up soon. Load the boat!!! (or your oil tanker - lol!!)
We were expecting an update Monday and now this coming Monday. News events get in the way of chart behavior. Especially in penny stocks. Golden crosses are fine if it is the right set up.
If dillution numbers are high this will take a dip. I am hoping for this because I know they are dilluting for the right reasons. I plan to hit it hard if it drops below .016.
You do understand that ZLUS is not drilling anything. They arent even contracting the well. They only have working interest in it, and nothing else. They arent the operator either. They didnt pick this location, they wont pick the next one either. All they can dois choose whether or not to write the check to pay the bills.
They will be given the chance to participate up to the same percentage that they have in this well. A number that we dont know.
They have to take either profit from this well to pay for their share in the next well. This is a very simple process.
When they announce the percentage they own in this well, and what it produces a day, and then you divide that by a billion, the share price will make everyone here very sad. Unless you are short.
I beleive they are done or almost done diluting to begin the first phase of whatever their plan may be. Hoping its a JV so stock will rise fast and furious.
If it takes until Feb, then so what. The pps will drop a bit due to impatience. The patient will be rewarded even more because we will buy more as more funds because available.
I, for one, have bought all I care to buy at this point. I think there is a small chance for failure here, but not much. Each week I add some more.
Funny there are other stocks with A/S 30 times what we have that are bouncing in the same range as us. When we move on real news I expect it to be substantial.
When you put one well 50 feet from a well that produces 60 bbpd that rodent mean they will both then produce 60. They target the same oil. That's the whole point of putting them so close together. Risk of dry hole is minimized. Less risk but also less return.
This is how you want a stock to move. A steady pace trending over a period of days to weeks. With potential along the way to really move and not come back.
Expected share count announcement trumps the golden cross. If dillution is low or lower than expected we should be ready to move up with the drilling g results referenced in last weeks PR.
Production estimates are readily available to the operators of the well. Before casing pipe is purchased and set, a pump is inserted, a unit is moved in, ect.. they first test the well.
Before a company undergoes these expenses, they test the well by pumping from the top for a period of hours from a smaller diameter pipe.
A fairly accurate estimate of how much oil and gas will be produced per day from this. Please let me know if you have any other questions or corrections.
Nice post - but it dosent entirely make sense. Thats like saying I got a paycheck, now Im rich. Well, was the paycheck for 37 hours at McDonalds or for a months salary as CEO of a Fortune 500?
I own one percent to three percent of many wells. They all have oil, but most dont make that much money. Some actually lose money if there are repairs needed plus the electric or gas bills to operate.
The main question, which none of us knows the answer to, is how much do they own of the well and how much it produces. (Both of these are known by the company even though they say they dont).
Just because there is oil in the ground dosent mean that as a shareholder of ZLUS you will profit and stock will appreciate. They still take out management fees and payroll for their company. (These should be limited, seeing as how they didnt select the drilling site, own the land, operate the well, or anything else material to the process. They receive a check and a bill in the mail once a month from the refinery.)
[quote
Due to the importance of this first project, and our commitment to inform our shareholders in a timely manner, CoreStream elected to issue this initial and limited report of well success and company operations. A more comprehensive report will be available in the coming weeks.
Pretty self explanatory to me and Im sure most here.][/quote]
Hiring a contractor to purchase and connect pipes together and insert them into the already drilled hole into an already tested zone of interest is not news.
Releasing this was an unnecessary step which most penny players would identify as an opportunity to dilute. (they have 500 million left to sell to us)
EWA11- the 90 percent water dosent mean much. It just goes into figuring how much pumping there is to do back into the ground. What anyone would be interested in here is the barrels per day. Which will be shockingly low when then report them.
There are just too many well in the area to be a huge producer.
I really wish that another person with oil knowledge would come in here and confirm. Or you could look at wikipedia or a variety of sources and come back and agree with me in 15 to 20 minutes.
Oil dosent just shoot out of the ground like in the beverly hillbillies. Some parts of the country many years ago it did, but that is long gone.
This oil the company is reaching for is very deep and mixed in with salt water, sulphur, and other gasses. Go to alaska or Canada - or the persian gulf and mostly oil will flow out, but not is southern US.
Walker - I like your posts on Ihub, but think you are valuing this wrong. The multiple dosent apply the same way.
My figures, to start with are high. Also the numbers dont get multiplied by 15, as the production signifigantly decreases after the first year, then the second, and so forth.
I know you are a very smart guy, so check this out and I think you will agree with me.
I own one percent of many wells, and I this figures are light years away from what I pay/recieve.
You have no idea what you are talking about. The PR says they are laying casing pipe. This is the wider pipe that goes on the outside. This is the last phase and the most expensive - depending on how deep the well is.
They dont spend all this money without knowing how much oil and gas will be coming out. This is brutal talking to you.
The zones come through the same pipe, then seep out by gravity, go to the bottom or wherever the pump is placed and then it is tested. You are lying about knowing about the oil business.
Seriously, its not that complicated. You can learn the basic process very quickly if you just try to look.
They would know within a very close amount, how much will be produced.
Its a moneymaker if you own 12 percent or 20 percent. You might get 10 or thousand a month.
Unfortunately we dont have that here when you consider that there are a billion shares. 20k divided by a billion is nothing, which is my main point. Surely the best oil man would laugh at these figures.
They dont spend the money to complete a well if they have no idea how much it will produce. Thats why they test it first and come up with some hard numbers. This is quite standard. Research it. My post has nothing false in it.
This is basic stuff to me that I learned years ago when I started buying interest in drilling.
That is why this whole company is a joke to me - I dont need DD from any other members here, it is not complicated at all. There dosent need to be a billion shares either, this is sick.
400 k divided by a billion is nothing. Thats what each stock is worth - sorry dudes. From now on I will not be posting my opinion , just facts about the oil business and how this dosent make any sense.