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One reason for pumping oil first...
Gas wells start paying the government a 35% tax from the first day they pump.
Oil wells have the added benefit that they are exempt from this tax on the first 15,000 barrels (if I have figured this correctly that would amount to $262,500 at $50 per barrel price, per well).
This makes for oil being the desired product to a cash short startup company as it gives them a chance to recover some of their resources/cash on the front end.
In your talk I am assuming they gave you nothing as you did not quote them at all, right assumption?
JW
The ride I rember was a slide in Guatemala, it was home built out of concrete, the thing I remember most is that it was a very long-long slide down that hill…. Glad I started not at the top… Merry Christmas and may the Christ of Christmas bless you all (and me) with a better knowing of Him…
Must be our Christmas present… 12 transactions all on the bid side, good news the price has not moved down, huh? Most have went on holiday for now…
Reading and waiting (is where I am)...
Bobbie...
Glad all is going well after your surgery. My prediction: STUOF will break through .62 -.63 on its fourth attempt. One more failed attempt yet to come then we will be on our way…
Nice Bump...
mostly selling...........
HOPE... and yes that is all it will take; investors (new one)
What can I say... "No Guts-No Glory".
If you looked at the charts and the posts for ASDX on R.B. you will see the same words found on this site, you get a glimpse of what those on this site will be saying if or when STUOF makes it's move.... Long wait but what an uptick, may we experience something along those lines... I wish I had purchased but am fearful of chasing after as I have found that a good way to experience pain...
ADSX another stock like STUOF in that I have been watching it for a coupe of years but its problem started out with too much hype (the kind that got them into trouble coming out of the gate). If only I had bought a million shares at .20 as it will surly break though 8.00 this morning… I am fully persuaded this will be a 100.00 stock over the next few years… Now to find a good entry point/time… look at a monthly and daily chart…
See what a bit of promo does... the report came out on the 16th and the price then at .40 rose to .62 over the next 9 days... just need a few more promos...
As I said after the stockholder meeting I still believe these guys are for real when it comes to finding oil and bringing it to market which over time will produce a sound stock price... I was only wrong one other time (ask my wife of 37 years)...
… (Mike is it?)
The story given at the stockholder meeting was that they were at the mercy of the owners of other wells (and distribution) in the area. If those owners thought that (STUOF) product was actually being drawn from their wells we may see a long stall (forced sell) before that compressor is installed… Just my two cents worth…
JW
You said:
The answer...no, and I'm waiting for a return call re:up to date shares owned by Mr. Bass and the rest of mgmt.
Last report Brian had about 4.5 mil. if I read it correctly...
I ask:
Can they give that information to a private party or must it be to all?
Question…
On my live real-time quotes I show two transactions on opening! One at 6:47:50AM @ .435 with 600 shares and another at 7:16:07 with 4000 shares yet the volume has hit 30,869. If anyone has a simple answer I won’t call and ask why. Maybe some kind of abnormal purchase or ???
Hanging in there,
JW
lot of selling this am...
If anyone calles ask about the pump upgrade as the 7th was the last projection date for completion...
speechless, huh?
And then, of course, there's our esteemed past President himself, the virtuoso of the English language. I believe him when he says that he "technically" didn't lie. He is, after all, the one person alive who can probably tell the truth and lie at the same time.
Your post is about as clear (in politician language) as Bill Clinton saying "Or-- Sex is not sex... if we tried it we would be in jail...
JW
I think my guess about the share price of STUOF are about as good as my guess on who is going to win the election... Have not a clue, but "THINK" both the USA and STUOF will surive the short term...
Trying not to think of either to much or I might end up like Catman...
JW
...as to post 1088 on R.B. I did call the FBI,local police, CIA, and Federal mental hospital this AM...
The man of wisdom speaks again!
Wow! we in Washington State are safe...
November 1, 2004 -- WASHINGTON - Osama bin Laden warned in his October Surprise video that he will be closely monitoring the state-by-state election returns in tomorrow's presidential race — and will spare any state that votes against President Bush from being attacked, according to a new analysis of his statement.
The respected Middle East Media Research Institute, which monitors and translates Arabic media and Internet sites, said initial translations of a key portion of bin Laden's video rant to the American people Friday night missed an ostentatious bid by the Saudi-born terror master to divide American voters and tilt the election towards Democratic challenger John Kerry...
In light of:
ISLAMABAD, PAKISTAN – A new videotape that has surfaced in Pakistan threatens a massive attack against the United States by a purported American member of Al Qaeda. It is not yet known if the tape is an authentic Al Qaeda production, but it bears enough resemblance that some experts are taking the tape seriously.
The chilling 75-minute digital videotape, seen by a Christian Science Monitor reporter in Pakistan, where it was obtained by ABC News, shows a high degree of sophistication and bears the logo of Al Qaeda's video production house, As-Sahab.
On the video, the unknown man's face is masked with a Palestinian scarf and sunglasses. He stabs the air with his finger, which appears to be fair-skinned, as he delivers his warning in American-accented English.
"Allah willing, the streets of America will run red with blood, matching drop for drop the blood of America's victims," says the speaker, who calls himself Azzam al Amriki (or Azzam the American). "What took place on September 11th was but the opening salvo in the global war on America."
The next attacks, he adds, "could come at any moment."…
And now we await a message from Osama bin Laden:
Oct 29, 3:09 PM (ET)
DUBAI (Reuters) - Arab satellite television Al Jazeera said on Friday it would broadcast a video tape from al Qaeda leader Osama bin Laden addressing the American people.
It said the tape, to be aired at 4 p.m. EDT, would discuss the reasons behind the Sept. 11, 2001, attacks on the United States and their repercussions. It gave no further details.
Indicates that at the least Osama bin Laden is going to make an attempt to influence the election; this leads to my question, how will Americans respond to something like “Elect George Bush and we will destroy an American city”. Would American fall in line out of fear and cow-down to such a threat?
From one with a very active imagination,
JW
Frontier Oil & Gas (FOGL)
InvestorsHub
Post #140...
...seems like a picture I have seen else-where...
Investors to scrutinise oil giants' earnings
By James Boxell in London and Doug Cameron in Houston
Published: October 24 2004 20:20 / Last updated: October 24 2004 20:20
Investors will this week look for signs of intensifying exploration and development activity as the world's five largest oil and gas companies report what analysts expect to be near-record quarterly earnings of close to $20bn (€15.8bn). Executives from ExxonMobil, BP, Royal Dutch/Shell, ChevronTexaco and ConocoPhillips are also expected to give details of more share buybacks, and face questions about political risks as development programmes focus on emerging markets.
But with crude oil benchmark prices above $50 a barrel, analysts said the focus would be on capital discipline and increasing output from mature fields such as the North Sea and the Nigerian delta. "Work on these oil fields at this oil price is almost irresistible," said Andrew Gould, chairman and chief executive officer of Schlumberger, the world's largest oilfield service group by revenues.
Exxon has led the way in capital discipline, with the big companies directing much of the free cash flow from oil prices back to shareholders rather than pouring it into investment.
Art Smith, chairman of consultant John S Herold, estimates buybacks from big companies may exceed spending on exploration and development this year.
Shell has worried investors because it is committed to spending its way back to production growth through a $45bn three-year capex spree, rather than promising share buybacks. It also broke away from peers by saying it will assess whether to invest in projects based on a $25 oil price. The others have stuck at $20.
Exxon is expected to lift buybacks from $2bn to $3bn, quarter over quarter, reaching $9bn for the year, Chevron has restarted repurchases, and Goldman Sachs estimates BP could return $32bn to shareholders between 2004 and 2006, equivalent to 15 per cent of its market value.
The five companies reporting this week generated net profits of $19.6bn in the three months to June 30. Analysts expect they will fall just short of this in the third quarter.
Rapidly growing demand from countries such as China and India and supply fears have pushed prices higher and kept refining margins well above year-ago levels, while their chemicals operations are benefiting from a cyclical recovery. However, production at high-margin US and North Sea fields has suffered because of maintenance issues and the run of four hurricanes in the Gulf of Mexico.
And analysts warn it is uncertain how far companies benefit from high crude prices in newer - non-Organisation for Economic Co-operation and Development - oil-producing regions because much of the excess is taxed away. Peter Nicol, ABNAmro analyst, said the $50 headline figures are misleading because they refer only to sought-after light crude from the North Sea and the US. "That $50 is not what most companies receive. A lot of their crudes are heavier and therefore less in demand and cheaper."
I will drop them an email and see if I can get more detailed answers on those two questions...
I know what OEM stands for but EOM????
Piranhas2...
To question #1: They did not say anything in specific terms. Brian actually expressed openness for suggestions on how better to promote and in the same breath he seemed to speak of his frustration (my interpretation) with not knowing how to do that with out repeating himself over and over giving out the same information as things take more time (purchasing-permits-tests and such) than the investors like. This is understandable to me when I consider their being small with limited capital. It might be worthwhile to look at similar sized oil companies and see what they are doing to promote their stock and pass that along as possible suggestions. Silence is a killer for the small investor who has no real relationship with them.
To question #2: I apologize, I didn’t even think to ask that one though it is a good question (speaking of the split issue)
I tend to remember that I saw a figure that stated there are only 7000 investors mostly Americans holding the stock. When I got home I thought I should have asked about Germans, as it seems there is a lot of STUOF on the web in German. Volume will only come up as new investors are drawn to the stock (for whatever reason)…
Disclaimer:
These are thoughts generated by one who has traded commodities since the late 60’s but never purchased a stock until a few of years ago. That purchase of a single stock led to a 500% profit over a 24-month period. For myself the purchasing of a stock is much different than buying or selling S & P 500 contracts where a long-term play is remaining in the position for a few hours. By nature I like that game and will continue as I test purchasing some energy related stocks for a longer play.
Other than wanting to start the journey of learning the basics (class 101 for sure) about the oil & gas (energy) business I wanted to meet these guys and get a feeling as to where they stood on a character level. I feel very comfortable with my skills at reading people.
As to expertise or to think that I know what I am doing when it comes to picking stocks is laughable to me as I have no proven history in doing so, my advice should be taken with much caution and as from some guy you don’t know who has an opinion.
Personnel:
Brian J. Bass (CEO):
Stan Herdman (CFO)
Ken Ellison (geologist)
Ken was easy to relate to, as he is a blue jean type of fellow. I received that from the kidding they gave him about wearing a tie (not his normal attire). I actually talked with him more than the others (very nice & likable fellow). The blue jeans in no way limits what he has to offer the company.
Brian also was an easy person to relate to. The thing about Brian that stood out was his clear understanding that he (San Telmo) is a little fish among very large fish and desires to see San Telmo Energy remain alive and survive all the issues that arise from startup with its shortage of cash. My gut feeling is that he is into this thing to make it work and to make it work well. Little is 1,000 barrels per day in relationship to large as in 200,000 plus barrels per day (that is the figure I came up with after looking around on the web for a few minutes). If their 5 out of 7 hits as at the start continues I think they will eventually have the cash needed (realizing continued and possibly faster growth will eat up that cash)
Ken I did not talk with… but his numbers were what they are “numbers”, if you have looked at their financials you have seen them. From my prospective they are doing well.
My over all thoughts are; they are men that are of good character. They seemed straightforward in their answers to questions and in general how they spoke of the company and where they want to take it. One thing that is always a large red flag concerning the extent of my trust is how much ones talk seems filled with hype/pumping. I heard “none” of this either in personal talks or the PowerPoint presentation. (I felt for them going through the PowerPoint with only myself there…)
Points that stood out in my thinking upon returning:
When they want to purchase the mineral rights to a piece of land they file/post this and it is approximately an 8-week period before that piece of property is placed up for bid to all who are interested.
By the time a company jumps through all the government hoops the government has seen all the studies done on the property. This information is keep secret for 1-year from the public and all other companies. This allows the one drilling to have inside information that they may apply to their bidding process on adjoining properties if they decide to do so. This is one reason they do not want to fly a real high flag as to their discoveries. So when they bid on that property (which all competitors are aware of) they have a bit of edge because the other bidders do not have all of the data though they do know that oil or gas has been located thereby keeping the price down.
Gas wells start paying the government approximately 35% tax from the first day they pump.
Oil wells have an added benefit that they are exempt from the tax on the first 15,000 barrels (if I have figured this correctly that would amount to $262,500 at $50 per barrel price, per well). This makes for oil being the desired product to a cash short startup company as it gives them a chance to recover some of their resources/cash on the front end.
If your well happens to be among a group of wells owned by another company and that company has the infrastructure to move that product from the field to market you are somewhat at their mercy. This has been an issue at McLeod (with the first of Nov. now the word), they have been given a date as to when the compressor upgrade will happen and when that date comes and goes they can put a certain amount of pressure on them but two things that come into play are; first of all the company has no obligation to do so, other than that they will receive their fees for moving the product. Secondly there may be concern that the product they are moving through their system is actually coming from the same field that they draw from, which only takes away from their own resources. I would think they could stall the small/new guy until he was willing to sell out.
Continuing on the last point, they claim do to their past experience working for these companies they have working relationship with individuals which is very important to maintain and add to. I would think this is a big asset.
The Teepee Creek 6-3 well was a find that was more than they had hoped for. Though they were not hyping it was obvious they were more than pleased and have increased their vision for that property.
They can drill 4-oils wells or 1–gas well per square mile (not sure if they can have both). If I recall correctly they have 3- sections at Teepee Creek.
It appeared to me the 1000 barrels of oil per day (or equivalent; gas) will be before the end of the year.
It appears they will come up 3.5 million dollars short after new cash flow is used for development of current properties. The question is, are they to the point of being able to borrow rather than make more private placement offers. The answer given was they didn’t know, but would do what ever works best (and easiest) for the company. Private placement is most likely easier and quicker from things said, which makes sense as to why they might elect that route and understandably raise concern among stockholders (especially Catman type…). Long term I am not sure how that plays out (lack of understanding on my part currently) if they continue to have more hits than not.
How all this translates into stock prices I do not know (if you do, let me in on the secret). I just don’t know what brings investors to a given stock (finding favor with it). I do think that the principles in this company do care for the stockholders in the larger picture. By that I mean that they are interested in finding product and getting it to market over spending a lot of time pumping the stock for the short time as many companies do. One that took that route to an extreme and finally had to change management was “Applied Digital (ADSX) http://www.adsx.com/content/index.htm. Long term this one may be a big winner also. Brian said they are very open to suggestions as to how to communicate better. I would say he is open to the point that they felt it wasn’t given out to much information to those who have more cash to cause properties to become more expensive to San Telmo.
Hopefully you find some of these ramblings helpful. I realize there is not much new information here; also I don’t always make things as clear as need be.
JW
Good news coming early this next year; more wells at Teepee Creek
Bad news; may be more Private Placement shares issued…
I think it is not a stock to watch to closely (minute by minute or even daily) as it may drive you crazy… think long term. Play poker/blackjack or trade commodities for action…
Open to any thoughts you may have.
SELL...Sell...
Partial report on the meeting… SELL…SELL…SELL. Warped humor, I have no intention of selling. It was worth the trip for me. I completed ¼ of the first 101-class on oil and gas. Someone said the meeting would mostly only require a phone booth for a meeting room. If the seven from STUOF had not shown I think I would have fit into a phone booth though (I was the only show)I might have needed to loose some weight.
I have a busy morning but I will give a more detailed report shortly (tomorrow hopefully)… The conclusion for me is; if they keep having success with their drilling it may prove to be a very good long-term play…
I picked up no hype from the three owners, which allowed me to go away feeling good about their intentions….
JW
Scary! Catman is buying....
.63 is the gateway to better things...
catman...I have a feeling that 6 months from now catman may be kicking himself or more on the order of kicking the German Long buyers (now that is creative)as to why he lost money by not hanging in there....
Read post #1428.. but now after this announcement you can add these words tothat post ""WITH GOOD REASON".
I should get out of here before noon today even though some things have come up that I need to tend to in my business, but they will have to wait as I am set to go...
the question of the day is should I have doubled up by using my margin (or can you even do that on over the counter stock)
Piranhas2... Read all of his posts… does remind me of a friend of mine when he is off his meds…Sad!
What is the RB board? A group on Investorshub or else where?
Bobbe...
As of this morning I am still planning on going to the meeting. I will give you my spin of what I hear upon returning.
I have a feeling that I will learn little more than we already know as to what they are doing but hoping that going there may give me a clearer gut feeling about the people involved. The long haul (from my prospective) requires people of integrity as much as oil found... So you now can see how I am wired.
I am 101% convinced that energy is going to be the next dot-com bubble (over the next 1--15 years) and I want to be in on it early.
JW
Still planning on it... two Dr. Appointments on Tues. Morn. then planning on taking off if all is well business wise...
Go for it, it would be nice to meet you and learn a bit...
JW
I agree.... JW