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NICE! Love it! Congrats on the new shares.
Nations is very quickly turning into a LEGIT operation! Great DD Tufan.
TREND HAS BEEN BROKEN!
Green on a news day. Setting up for a strong movement upward!
A green close breaks the "News = Red Day" trend.
That's a HUGE victory imo.
Agreed. ORFG is hands down the most undervalued ticker in recent memory. It's silly.
Nations and Bakken and really doing work!! Can't wait to see this break pps barriers.
Some DD on Indigo Resources, Ltd. Think this may have already been posted, but what the hell.
IMO it's is HUGE that we're partnering with this company. They are already very established. This is a great validator for Bakken Energy, Nations Oil & Gas, and those involved.
MACD flip is looking pretty sexy right now!
Pistolpete...
I request you take an extended lunch everyday :)
Could it be the same 800k that was traded this morning?!
Hmmm... Smells to me like somebody is trying to keep this down as long as possible ;)
Yup. It'll be easy to pick back up this morning :)
Yeah me too :) GET EM OUT OF THE WAY!
LOI WITH INDIGO NOT A MANIPULATION TOOL
This LOI was signed in conjunction with Indigo Resources, Ltd. NOT an LOI signed within Bakken itself.
Nations Oil and Gas has signed a letter of Intent with Indigo Resources, Ltd to set up Joint Venture to access assets in Oil and Gas related properties in the Uinta Basin.
This LOI has been signed by BOTH Bakken and the HUGE/already established Indigo Resources. BIG TIME FELLAS!
Looking at HUGE revenues for the refinery! WAYYYYY undervalued at these levels.
I think so too.
The DD we've been assembling past few weeks really speaks for itself and indicates that, without a shadow of a doubt, this company is absolutely 100% UNDERVALUED.
I think I have a reasonable reputation of being leveled headed about price predictions.
IMO you're being to conservative. The valuations from the Refinery Appraisal document alone puts ORFG fairly valued around .20 to .30
Also keep in mind we're also waiting on valuations from the land holdings :)
We're going to see selling along the way, but there's a very good chance ORFG breaks through the .10 wall
It would be wise to buy at these prices :)
All our DD points to ORFG being EXTREMELY undervalued. Great work longs!
AND a warm, hearty welcome to all the new ORFG faces:)
Looking good here!!
And talk about the quality DD we've assembled the past couple weeks. 100% top notch and legit. GREAT THINGS COMING GUYS!
Yes. Just somebody trying to get out the flippers and/or acquire more shares probably. It's gone now.
Good work! Now hold em' tight ;)
These are the oil refineries in the Salt Lake area. You're looking at 1-6 million in revenue per day for these. For reference, our refinery will do about 2,500 bbl/d less than the Woods Cross Refinery (Silver Eagle) location.
We're hanging in there!
North Salt Lake Refinery (Big West Oil), North Salt Lake 35,000 bbl/d (5,600 m3/d)
Salt Lake City Refinery (Chevron), Salt Lake City 45,000 bbl/d (7,200 m3/d)
Salt Lake City Refinery (Tesoro), Salt Lake City 58,000 bbl/d (9,200 m3/d)
Woods Cross Refinery (HollyFrontier Corp Corporation), Woods Cross 31,000 bbl/d (4,900 m3/d) Nelson Complexity Index 12.5[26]
Woods Cross Refinery (Silver Eagle Refining), Woods Cross 10,200 bbl/d (1,620 m3/d)
7,057 Barrels Per Day, 2,576,000 per year is the capacity of the Green River Refinery as per the official 2006 Appraisal Document.
At current value ($104.35 per barrel) that represents $268,805,600 in revenue every year (if run at max capacity).
As of 2006, when oil prices were sitting around $50.00, the net margins for refineries located in the Rocky Mountain region was $7.67 per barrel, and therefore would result in $19,757,920 in profit. Because oil prices have doubled since 2006, one can assume yearly profits at 2014 values would be in the $40,000,000 range at the Green River Refinery.
Information on iBox is GREAT!
Big thank you to Tufan123 for assembling that this weekend.
What do you mean it doesn't matter? That's been your entire point... So to emphasize the TRUTH:
The appraisal DEDUCTED the costs for capital expenditures (future upgrades/refurbishments) from the valuation. The appraisal is ALSO based on the refinery IN ITS CURRENT CONDITION.
SECONDLY. The appraisal was not based on future refurbishment. IT IS CLEARLY STATED NUMEROUS TIMES in the appraisal document (which you provided) that the values presented are based on CURRENT assets in their CURRENT condition. IN FACT there is a section that states the refinery needs ONLY $600,000 in upgrades to be fully functional and boost yields. AND I QUOTE FROM THE DOCUMENT:
APPRAISAL REPORT ANALYSIS!! MUST READ!!
The Appraisal Report Bear posted is actually VERY interesting for us investors IN A GOOD WAY. Lots of great information in here. Let's keep in mind a couple things before we dive in:
1) This appraisal was conducted in March-June 2006. Oil prices in this time ranged between $50-60. Oil now sits above $100. That's a 100% increase guys!! It's safe to say you can take these valuations and basically double them based off this!
2) It's noted throughout that this appraisal is very conservative.
3) Take into account that this valuation is in 2006 dollars. The US dollar had OVER DOUBLE the purchasing power in 2006 than toady!! (sad isn't it?) Therefore, we could again double the valuations listed in the appraisal... But for arguments sake, let's be CONSERVATIVE and just double once.
4) I don't know where some investors are getting their information from. The reason why the plant 'is not capable' of refining is because the refinery 'RENDERED THE EQUIPMENT' inoperative. NOT that the equipment doesn't work or is non-existent. INFACT, this appraisal deducted the necessary capital expenditures needed to continue operation from the valuation.
Okay, so with all that in mind... This appraisal goes through three different types of valuations. The PR, potential investors, and longs have been referencing the COST APPROACH appraisal specifically. So I'll focus on that (although, I'll recap the others at the end too). I'd like to also note that the COST APPROACH is the most conservative of the three. Before we get into the results, here are the five things that go into developing a refinery's value based on COST APPROACH (as per the appraisal document):
Reproduction Cost New: First step of the cost approach. Defined as the 'estimated amount required to REPRODUCE OR CREATE A REPLICA OF THE ENTIRE PROPERTY at one time with current market prices. Includes materials, labor, manufactured equipment, contractors, overhead, fees, engineering fees, architectural fees, and does not include overtime, bonuses for labor, or premiums for material equipment. (So often times, this is a 'perfect world' construction scenario. Very often undervalued).
Physical Deterioration: Defined as the loss in value resulting from wear and tear in operation and exposure to the elements. Result of past service, experience, and maintenance practice. Also includes exposure to the natural elements of the production area.
Economic Obsolescence: This is a form of depreciation accounted for in the Cost Approach. Defined as an incurable loss in value caused by unfavorable conditions. Can also be caused by reduced demand for the product, overcapacity in the industry, etc.
Functional Obsolescence Due to Excess Operating Costs: Penalty that the existent property incurs if the subject property has higher operating costs than would be necessary in the modern plant. Measured by the present value of the excess operating costs from continued operation of the existing property compared to a brand-new refinery.
Necessary Capital Expenditures: This represents the costs that would be required by a buyer or seller to keep the subject property operating into the future.
Land Value: Self explanatory.
RESULTS:
Reproduction Cost New: Based on the analysis, the cost to build a similar refinery as brand new, the cost is concluded to be $65,100,000. WOW, this is HUGE GUYS!!! Keep in mind the price of oil has DOUBLED since this appraisal. The analysis also notes that the use of new technology will result in higher production yields and reduced labor requirements. (But not much in the grand scheme of things, we'll get to that).
Physical Deterioration: The analysis says that a refinery of similar size, in a similar condition as our own WITH NO UPGRADES would be fairly valued at $27,342,000 in 2006.
Economic Obsolescence: The appraisal notes that upon review of the Green River Refinery, there is NO LOSS IN VALUE based on wear and tear, exposure to elements, or poor maintenance. OUR REFINERY IS IN WORKING CONDITION!
Excess Operating Costs: Again, this is a comparison to a BRAND NEW refining facility. Also, this estimate is not yearly, but rather for the REMAINING LIFE OF THE PROPERTY. So, over the MANY, MANY years of operation, our factory would only produce $9,000,000 less income than a brand new STATE OF THE ART facility. BUT, with the next point, that number would be much less:
Necessary Capital Expenditures: THIS IS HUGE GUYS. The report notes that only $600,000 is necessary for upgrading the technology and equipment at the refinery. This will keep our property running WELL into the future and produce HIGHER YIELDS!!!!
OTHER TIDBITS:
1) There is NO capital expenditures necessary to continue operation as required by a government agency. The refinery is GOVERNMENT APPROVED TO CONTINUE OPERATION.
2) That $16,500,000 number is the value of the refinery, AFTER SUBTRACTING THE COST TO UPGRADE THE TECHNOLOGY AND EQUIPMENT. It's noted that this value is very conservative. Also keep in mind the cost of oil has DOUBLED and the current value of the USD!
3) Land value in the document is very undervalued. A quick search shows land values in this area have increased exponentially. Therefore, our refinery is worth more than listed. (Sits on 35.19 Acres)
4) Using an Income Approach, this appraisal says our refinery without any upgrades is valued at $51,000,000.00 as of 2006 (Income Approach is a reflection of actual investor expectations of the refining industry and reflects the financial rewards of ownership). Again, HUGE given the cost of oil is SIGNIFICANTLY higher.
MY CONCLUSION:
This is BIG STUFF guys. According to this appraisal, the refinery is in good condition and doesn't require many upgrades to get it running @ full power. Taking into account the higher cost of oil AND the purchasing power of the dollar... THE PR IS 100% CORRECT. With upgrades (only around $500,000) our refinery could absolutely be worth upwards of $70,000,000 today. So this, coupled with the company going current on Friday.... name change.... dividend... the ORFG's PPS COULD NOT BE MORE UNDERVALUED!!!
I'd like to point out one last thing. This document was 100 pages and is only a single refinery. I've talked with Michael numerous times about why we haven't seen valuations for the land property Nations has acquired. THIS STUFF TAKES TIME GUYS. MONTHS, in fact. We're not working with an MJ stock here. Fortunately, we should be seeing land valuations soon as we're nearing the time window outlined by Michael on my calls :)
And in case anyone wants some light reading materials or doesn't trust me... I basically just copied and pasted everything above.. Here you go: http://www.salvex.com/media/document/GR%20Appraisal%20Report.pdf
FOR NEW INVESTORS, HERE IS SOME MORE DD TO REVIEW: (Thank you Tufan123 for this DD)
CORRECT GREEN REFINERY INFORMATION:
Ecodomaine Refining, Inc before actually completing the purchase of Green River Refinery, spent past 1 year refurbishing the Green River Refinery.
Take a look at this paragraph from this article which was published in Nov 2006:
“Bigelow, a Green River native who intends to return to Utah, said EcoDomaine has spent the past year refurbishing the plant that shut down at least eight years ago. There are still a couple of tanks to build, he said.”
http://www.deseretnews.com/article/650203618/Another-refinery-in-works-for-Utah.html?pg=all
http://www.riversimulator.org/Resources/farcountry/OilGas/GreenRiverRefinery/ExisitingGreenRiverRefineryPhotos.pdf
http://www.loopnet.com/Listing/17970085/4210-Industrial-East-Rd-Green-River-UT/
Gulfstream Management – was the company that was contracted by EcoDomaine Refining for remediation of Green River Site:
Here take a look at their website and look under “Turnarounds – Refineries”. You will see the following:
“EcoDomaine Refining – Green River Site & Jacintoport Tank Terminal (JTTI) - Demolition and Site Remediation ($2.8M)”
After refurbishing Green River Refinery in 2006, Green River Oil Refinery was valued at over $16,500,000 in 2006.
http://powergenerationservicesincorporated.webs.com/
Later in 2010, assets of EcoDomaine Refining were auctioned off to “Private Capital
Group, Inc. as agent for those individuals/entities listed on the
Exhibit "A" of the deed of trust, ("Beneficiary"), whose mailing
address is c/o Private Capital Group, 160 W. Canyon Crest Road,
Alpine, UT 84004,”
This Private Group is one that’s managing the LOI with ORFG and they are :
GREEN RIVER LENDERS LLC
Entity Number: 7879685-0160
Company Type: LLC - Domestic
Address: 160 W Canyon Crest Road Alpine, UT 84004
State of Origin:
Registered Agent: Private Capital Group Inc
Registered Agent Address:
160 W Canyon Crest Road
Alpine, UT 8400
https://secure.utah.gov/bes/action/details?entity=7879685-0160
Green River Refinery was listed for sale - $3,500,000
Link here:
http://marketing.naiutahsouth.com/marketing/sale/industrial/6780/files/assets/seo/page3.html
on Page 4
Where are you getting this from?
EVERYONE needs to read this excellent DD!
I found the same results myself, Tufan.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102467516
I second this. Calvin hit the nail on the head.
Fair if sticky is removed as it's someones opinion.
Tufan's observations are correct imo
THIS IS A GREAT CATCH TMONEY
Great catch. Love that the Green River Refinery LLC has a merger/acquisition date of May 15, same date as our LOI PR. Definitely not a coincidence!!!
Green River Refinery LLC. on Bloomberg BusinessWeek:
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=263915407
You're spinning this like a top!!!
Yes it will!
I've tried to be as realistic about this company as possible since the beginning... and imo we're seeing everything line up in the next couple weeks.
The company placed a 30 day deadline on the refinery acquisition... so we'll know exactly what we are dealing with on that front very soon. Fortunately, our DD is pointing to YES, the refinery acquisition is indeed in the works (and possibly already nearly finalized).
Also: This week we've seen the name get approved by the State of Nevada, company standing moved to active, and the directors list updated. Bakken is now current at the state level. This is a key indicator that the FINRA documentation will be approved soon.
Also, Also: many have confirmed that YES ORFG is in contact with the TA (Island) about the Dividend. So that is nearly finished as well.
Lots of good things coming my friend. Finally all lining up!
EVERYONE MUST READ Correct Green River DD!!
This is the correct Green River Refinery DD. Really encouraging stuff. Great work Tufan!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102467516
It's a no-brainier to at least take a starter position in this.
Except for NO red flag?
That's OLD DD and is no longer accurate.
Company is listed as "ACTIVE" and the official officers were updated... The company is NOT inactive and NOT in default with state of Nevada.
https://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=1fXf1umSxrCc673JFx17hA%253d%253d
No red flag bud. Nothing but green
Whoa... great catch!!!
Imo that is absolutely NOT a coisidence !
They placed the 30 day timeline for a reason ;) good chance they already have this basically in the bag. Imo.
Real DD on the refinery... MUST READ
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102437730
Thank you for assembling this Tufan.
Look how fast all this is coming together. What are we, two and a half weeks into the new CEO?
We're in for the big weeks we've all been waiting for very soon imo.
LOVIN' IT GUYS!!
This is great DD Tufan. Thank you for updating
Awesome! !!! Everyone needs to read this. Good work with ibox my friend.
Well would you look at that?! AWESOME!!!
LIKE WE'VE SAID ALL ALONG TUFAN...
reorganizing a company for a new industry takes time. And it's great to see that Bakken is taking steps to become current/move forward in this new direction. If this was a 'SCAM' why would they be they be getting all their ducks in a row? hmmm....
This is the tip of the ice burg. IMO we see much be validated next week.
Also like to point out how quick all this is moving since the appointment of the new CEO :) Hats off to him.
https://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=1fXf1umSxrCc673JFx17hA%253d%253d