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Even if that was the only hole in the ground they owned, they should be worth more than the current market cap. Add in the other plays Dejour owns and this should be priced at $1.50 to $2 minimum. The market will wake up especially if we find some success at South Rangely or the Gibson Gulch partner is announced. So many catalysts for the attention to get focused on us and once it is...watch out.
Chairman's letter to shareholders
http://www.dejour.com/docs/letter.pdf
C H A I R M A N’ S L E T T E R
May 9, 2011
Re: Gibson Gulch / Piceance Basin Developments
__________________________________________________________________________________________
Dear Dejour Stakeholders,
Gibson Gulch (northwest Colorado) represents one of the lowest cost North American sources for natural gas.
With thick natural gas accumulations primarily in the Williams Fork formation, it is known for both low risk reserves
and NGLs (liquids) that enhance the net Mcf price. Currently, there are several large companies aggressively
developing this highly prolific resource with extensive capital expenditures slated for 2011 and beyond.
Who are the major players at Gibson Gulch?
Bill Barrett (BBG- NYSE) $ 1.95 B Market Cap
Williams (WMB-NYSE) $18.40 B Market Cap
What are these major players doing?
Bill Barrett drilled approximately 148 wells in 2010 and disclosed that they plan to drill an additional 100 wells for
2011. They currently have approximately 750 producing wells and have a stated goal of increasing NGL revenue
through an accelerated program at Gibson Gulch.
Williams is the 10th largest natural gas producer in the United States with one of their primary production areas in
the Piceance. Williams has 50 wells in this region and expect to drill at least 100 additional wells. It should be
noted that they had previously acquired property by paying $30K/acre. A new pipeline is scheduled for
completion during the second half of 2011.
What interesting developments have occurred elsewhere in the Piceance Basin?
Encana (ECA-NYSE) ($24.02 B Market Cap) drilled 125 net wells in 2010 in their Piceance resource play and
have been there since 2001. They produced 458 MMcfe/d over a broad stretch of the basin during 2010. Some of
Encana’s most prolific new horizontal wells are in close proximity to Dejour acreage located a few miles from
Gibson Gulch.
What is the Value Opportunity for Dejour and our Shareholders at Gibson Gulch?
Dejour is the only junior E&P with a sizeable stake at Gibson Gulch. With 220 well locations, our land position is
surrounded by adjacent production with neighbors who are committed to furthering their investment in the region.
As per our latest reserves report for Gibson Gulch, we have been assigned a PV-10 value of $165 million. This
value is exclusive of the deeper Mancos gas resource being developed elsewhere in the basin.
With a modest $50M market cap and a multi well drill program slated to commence in Q4-2011, Dejour plans to
bring its Gibson Gulch reserves into production early in 2012. Gibson Gulch represents significant revenue and
value growth for Dejour on the immediate horizon to supplement current rising oil/gas production at Woodrush NE
BC ($8.2 M in revenue for 2010, up over 20%). Please note this is just one component of our total portfolio of
properties that currently encompasses more than 120,000 acres and 11 oil and gas projects. Again, all within a
$50M market cap company.
Thank you for your continued interest in Dejour.
Robert L. Hodgkinson,
Co-Chairman & CEO
Dejour’s Gibson Gulch Project
Premiere proven asset
? 2,200 acres in the Piceance Basin (Colorado)
? Company paid $250/acre versus $30k/acre paid by competitors in recent transactions
? 185Bcfe of proved and probable undeveloped reserves, PV10 of $165m+ (compared to
company market cap of $50m)
? Liquids rich, solid economics even in current pricing environment (est. $7.50+ realizable/mcf)
? DEJ’s acreage is adjacent to the significant GG operations of Bill Barrett and Williams
Development plan
? In final stages (permits and financing) - 1H 2011
? Williams GG pipeline in place by Q4 2011
? Expect to begin drilling in Q4 2011, revenue in 2012
? 220 potential wells at 10 acre spacing (72% WI)
Additional upside
? Niobrara (Mancos) play potential
Statements
the more DD you do, the less freaked out you get over small dips on small volume thats for sure. If this gets a PR, watch out above. Welcome aboard.
here is a slide presentation from today
http://www.dejour.com/docs/dej_presentation.pdf
I also think that those numbers are really conservative when it comes to share value. I think if they liquidated everything today, we would have a couple bucks per share.
I think it will. I keep looking for bad things to counter all the positives and the only thing I find is the stock dillutions but that is better than having too much debt imo. They look to have used every penny they have gotten wisely and have built up a good company. Todays presentation was pretty good. I see nothing but good from this company over the next year or two. I think more and more people are realizing this also. I can't tell you how to invest your money but I think this is a good investment for myself.
We will be getting a PR on Monday after the presentation. Just confirmed it with Mr. Hodgkinson. Have a great weekend everyone.
http://finance.yahoo.com/news/Federal-Reserve-Rejects-AIG-cnbc-2325996002.html;_ylt=AidBRoAUtKmbXxAUFNPs8eO7YWsA;_ylu=X3oDMTE1dGJtbjRtBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawNmZWRlcmFscmVzZXI-?x=0&sec=topStories&pos=main&asset=&ccode=
I think Lehman has a lot of MBS on their books that are very similiar to what AIG wants to buy back from the Fed. More value is in our toxic assets than they want to let on.
That would make a lot of sense. Would account for the huge discrepency of what they originally said they had in assets and what they claim they do now. You might be onto something.
Thanks. I bought more today and am cost averaged in at 38 cents. I don't care if it drops in the short term because I think it will hit a $1 plus in a couple months. I have been wrong before also but I like what I see. Good luck to you and thanks for responding back.
HI Fut, I have read your posts and have respected your comments. What are your thoughts on this?
that is my hope. I know they are going to understate assets until all the debtors agree on settling and then they magically will find extra billions hidden under the couch. I just hope they leave us some scraps and don't cut us off with an unfreindly POR. For the price, it is well worth the risk/reward. Good luck to you.
look at the 2 year charts. This is coming off 2 year lows. Biggest bk in history and plenty of people think they have more assets that they are letting on. I think the MM tried scaring people into selling at absurdly low levels and since that isn't working, is starting to drive the price up to get the action going.
Looks like you are right...so far. Hope I never get a chance to buy them that cheap. I like the price action.
I have accumalated 25k shares so far with an average cost of 37 cents. I am looking for another 25k but I am holding off in case it drops into the 33's or 34's. Technical signs show a potential for a drop but the fundamentals on this company are great and any drop would be short lived imo.
Scottrade is finally showing an ask again. So you can put a sell order in. I put one in for .07 for mine. Feel free to buy them.
It is frustrating but I am not selling anytime soon. I tried putting a sale order in and it wouldn't even let me put it in at .0001. It is a joke. I guess they get to short my shares now. No big deal, I will make them pay to cover later on ;)
I put good until cancelled orders on my LEHJQ for good until cancelled. I noticed this morning that it was expired so I went to redo it. I have a margin account and do not like seeing my shares borrowed. So I went to put it in for .06 gtc and scottrade told me it was too high. Well I started lowering it a penny at a time. It rejected a .02 GTC sell order because it is too far above the current price!! Games are being played thats for sure. No sweat since this is play money but it sure sucks.
Yeah I know. It doesn't bother me too much. This is already priced out at worst case scenerio. I like how you put your numbers together. It is a lotto ticket. I am holding out hope that they are minimizing assets to make the creditors give better concessions. As long as we don't get wiped out on a reorganization plan, I hold out hope. I think this might take 10 years but it will eventually pan out for us as long as we don't get wiped out on a reorganization plan. Good luck nonetheless to everyone. Hopefully no one has the mortgage on this.
Lehman’s trustee anticipates windfall
By Telis Demos in New York and Megan Murphy in London
Published: February 23 2011 19:13 | Last updated: February 23 2011 19:13
Lehman Brothers’ trustee is potentially in line for billions in additional cash as part of Barclays’ deal to acquire the defunct investment bank’s US broker-dealer business, after a US bankruptcy court opinion.
The UK bank and Lehman’s trustee, a US government-appointed attorney assigned to collect monies for Lehman’s broker-dealer customers, were trying on Wednesday to decide how much cash should be transferred under the court’s ruling on Tuesday.
EDITOR’S CHOICE
In depth: Lehman Brothers - Nov-23Barclays purchase of Lehman unit ruled fair - Feb-23Lehman reaches agreement with German affiliate - Feb-04Lehman revamps creditor proposal - Jan-26Pimco in bid to boost Lehman bondholder pay-outs - Jan-14Lehman creditors unveil rival bankruptcy plan - Dec-16Judge James Peck of a New York bankruptcy court ruled that the deal was fair, refuting the claim of the Lehman estate and its creditors that Barclays misrepresented the value of securities it acquired for $45bn in September 2008 in the aftermath of the US bank’s collapse. He said the deal was “admirable, even heroic” under the “fog of war” during that week.
The estate and its creditors declined to comment.
But Judge Peck did agree with the Lehman trustee, James Giddens of Hughes Hubbard & Reed, that Barclays took some cash assets that were not part of the deal. They included $4bn in cash margin held by clearing houses for exchange-traded derivatives, plus $769m in cash held in “15c3-3”, or protected customer, accounts.
“This was enormously important to us. If we hadn’t won this, it would have frustrated the trustee’s ability to pay customers,” said William Maguire, the trustee’s chief trial counsel.
The judge said Barclays was entitled to $1.9bn in securities in a “clearance box” held by Depository Trust & Clearing Corporation, that it had sued Lehman to recover. There is currently about $800m in those accounts.
According to Mr Maguire, Lehman’s trustee already possesses some of the cash in dispute, and Barclays will now have to transfer to the trustee more than $1.5bn in cash and relinquish rights to a further $1bn held by third parties.
Barclays said in a statement: “We are pleased with the court’s decision,” but would not comment on sums potentially owed.
I will sell you that many at .80 cents a pop. Let me know :)
The crazy thing is it could quadruple from these levels and still be underpriced for the potential reward versus risk. Good luck to everyone.
New York Leads in Pursuit of Lehman
State Prosecutors, not U.S. Regulators, Are Set to Sue Over Accounting Overseen by Ernst & Young
By MICHAEL RAPOPORT
In 2001, the regulator of the nation's biggest banks told its examiners to be on the lookout for firms whose regulatory filings made them look healthier than they really were. That followed guidelines issued in 1990 that said banks could face disciplinary action if their filings "have significant inaccuracies or are 'window dressed.' "
But as early as this week, it is the New York attorney general—not the Office of the Comptroller of the Currency, the bank regulator—who is expected to file a lawsuit alleging accounting firm Ernst & Young LLP allowed Wall Street broker Lehman Brothers Holdings to fake its books so it could appear financially healthier.
But federal regulators, who were blamed for failing to stop financial abuses that led to the subprime mortgage crisis, haven't acted.
"They haven't taken any significant action in pretty much forever," said William K. Black, a bank regulator during the 1990s savings-and-loan crisis who now teaches economics and law at the University of Missouri-Kansas City.
"It's the usual problem of what you do with a ubiquitous practice," he said.
Bank regulators' apparent reluctance to crack down on window dressing comes as agencies assume even more authority for overseeing the banking system in the wake of the Dodd-Frank law's overhaul of financial regulation.
Bank regulators may have pressured some banks privately. But federal regulators have been criticized for their inaction and coziness with banks they police.
Though Lehman's transactions, designed to remove assets from the balance sheet, were of a different type than most others, many banks have engaged in window dressing on a broader scale—systematically reducing their debt before reporting financial results. The practice isn't illegal, though intentionally masking debt to deceive investors violates guidelines set by regulators.
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Bloomberg News
The New York attorney general is expected to file a lawsuit alleging accounting firm Ernst & Young allowed Lehman Brothers to fake its books so it could appear financially healthier. Here, Ernst & Young's headquarters in New York.
In a statement, the OCC said it would take appropriate action if necessary.
"Our procedures properly address this area and our procedures remain in effect," the statement said.
A Wall Street Journal analysis found that, since the beginning of 2009, the group of 18 large Federal Reserve primary-dealer banks has reduced a key form of short-term borrowing, known as repurchase agreements, or "repos."
The banks dropped their loans by an average of 42% at quarter's end from its peak level during the same quarter, only to raise it again after the start of the next quarter, according to the Journal analysis.
Window dressing came to the forefront as an issue in March, when a bankruptcy-court examiner's report said Lehman had used a window-dressing maneuver it called Repo 105—accounting for repo transactions as sales instead of borrowings—to take about $50 billion in assets off its balance sheet before its 2008 collapse.
Securities and Exchange Commission inquiries subsequently turned up billions of dollars in repo transactions that Bank of America Corp. and Citigroup Inc. acknowledged they had accounted for incorrectly—classifying them as sales when they should have been borrowings, akin to what Lehman did with its Repo 105s.
In Bank of America's and Citi's cases, the amounts were relatively small in the context of their giant balance sheets, however, and both banks said the inaccurate accounting was inadvertent.
The SEC proposed new disclosures about short-term borrowing to help investors spot when companies are window dressing. In a speech this month, SEC Chairman Mary Schapiro said "misleading 'window dressing' in quarterly reports" was one factor that has fostered investor skepticism.
But the SEC said it hasn't found any widespread inappropriate practices in companies' repo accounting. It hasn't taken any public action against any companies over the issue beyond requiring more disclosure.
The Federal Deposit Insurance Corp. said in a statement its examiners also look for window dressing and take appropriate action when improprieties are found. But it noted banks must report average balance-sheet figures that would make clear when they are reducing debt at the end of a period. It added that sometimes questionable practices arise from a bank's broker-dealer operations, which are outside the FDIC's purview.
FDIC regulations point to the Federal Reserve, which "will discourage temporary balance sheet adjustments or any other 'window dressing' practices." A Federal Reserve spokeswoman declined to comment.
Despite the inaccurate transactions found in the wake of the SEC inquiry, Citigroup "has followed appropriate accounting procedures on this issue," said spokesman Jon Diat.
Bank of America, which is among the companies being investigated by New York state prosecutors, has acknowledged it found six repo transactions that were wrongly classified. Those transactions are separate from what appears to be Bank of America's broader practice of reducing repo debt virtually every quarter in recent years before quarter's end.
The Journal analysis shows that, since late 2008, Bank of America's net repo borrowings have declined an average of 53% at quarter-ends compared with the average during the same periods.
The bank acknowledged it "manages" its balance sheets and requires its traders or divisions to meet certain balance-sheet limits. But the company says it isn't doing anything improper and provides significant disclosure that makes its practices clear. Jerry Dubrowski, a Bank of America spokesman, added that the bank's practice is to cooperate with any inquiry from regulators.
http://online.wsj.com/article/SB10001424052748704610904576032062171661374.html
You could say any of the big banks and it would make sense. No shortage of bad guys in the banking world.
am I reading this correctly in that the securities "won" were from 5 other Lehman entities? So in essence, this doesn't affect the A/L at all?
Lehman says Archstone unit needs more equity
9:15am CDT
Wed Nov 3, 2010 9:39am EDT
* Archstone would convert another $237 mln debt to equity
* About $5.4 billion of debt would be eliminated
* Lehman acquired Archstone in $22.2 bln takeover in 2007
NEW YORK, Nov 3 (Reuters) - Lehman Brothers Holdings Inc (LEHMQ.PK) said it wanted its Archstone-Smith Trust unit to convert an additional $237 million of debt into equity to maximize the value of that real estate business.
According to a filing in the U.S. Bankruptcy Court in Manhattan, which is handling Lehman's Chapter 11 case, the company previously sought to restructure Archstone in part by reducing $5.2 billion of debt through an equity conversion. The change would boost that sum to roughly $5.4 billion.
"The restructuring, as modified, is necessary, in the debtors' judgment, to allow the debtors to maximize the prospect of a recovery on their investments in Archstone," wrote Shai Waisman, a Weil, Gotshal & Manges LLP partner who represents Lehman.
Archstone's restructuring requires court approval.
Lehman's $22.2 billion takeover in 2007 of the nation's second-largest real estate investment trust added hundreds of prime apartment buildings nationwide to the company's portfolio.
The takeover was ill-timed, however, and saddled Lehman with more debt just as the U.S. property market was in the early stages of a precipitous fall.
Lehman owns 47 percent of Archstone. Barclays Plc (BARC.L) and Bank of America Corp (BAC.N) share another 47 percent, and invested $4.8 billion of equity into Archstone. Talks with them on the restructuring are ongoing, Lehman said.
Tishman Speyer Properties, a New York real estate firm, joined with Lehman in the Archstone buyout.
Anton Valukas, Lehman's court-appointed examiner, in March cited Archstone as among a handful of real estate transactions that caused Lehman's balance sheet to grow too large.
Once the fourth-largest U.S. investment bank, Lehman filed for Chapter 11 protection on Sept. 15, 2008. It is trying to sell assets to pay creditors. Lehman's bankruptcy is six times larger than any other in U.S. history.
The case is In re: Lehman Brothers Holdings Inc et al, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555. (Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)
http://www.reuters.com/article/idCNN0310352420101103?rpc=44
at least they didn't forget about us :)
What a difference in spread. bid is .016 and the ask is .06. Who is going to blink?
370 million here, 8 to 10 billion there and we haven't even shaken the old Lehman couch to see how much is hidden in that yet. GLTA and I hope everyone has a great weekend.
Nice day today. Keeping the faith might be paying off for us sooner rather than later. GLTA.
its all a bunch of bs. Pay your mortgage and you will not be foreclosed on. These are all people trying to get off on technicalities. It doesn't mean the foreclosures aren't merited. It just means the banks are cutting corners. I don't see how it compares to what happened to Lehman.
more good news.
You would think it would be worth more than the commons but I suppose the liquidity of the commons is worth more to some people versus being higher up the pecking order when it comes time to get paid out (if we are so lucky). Personally, I think this is the better bet.
at least 445 million for a lawsuit I doubt most knew about. How many more are there? This is why I hold on. You can shake a trillion dollar tree for quite some time before it stops dropping dollar bills.
Lehman Brothers Holdings Inc (LEHMQ.PK) asked a judge on Thursday to delay 50 lawsuits it has filed while it tries to reach settlements and focus on other parts of its record bankruptcy.
Many of the lawsuits were filed this week as Lehman raced to beat a two-year deadline to file cases seeking to undo so-called fraudulent transfers.
Lehman filed for Chapter 11 protection on Sept. 15, 2008.
In a filing in federal bankruptcy court in Manhattan, Lehman said the 50 lawsuits were filed against more than 300 defendants and seek to avoid or undo more than 230 transactions.
"Temporarily staying these proceedings will allow the debtors to pursue consensual resolutions of claims," Lehman said in the filing.
U.S. Bankruptcy Judge James Peck will consider the request, which Lehman said has the support of the company's main creditors' committee.
Some of the lawsuits, including against Canadian Imperial Bank of Commerce (CM.TO) and other banks, concern agreements where the bankruptcy caused collateral that would have gone to Lehman to be diverted. Lehman calls these diversions improper.
Lehman expects to file additional lawsuits to undo transactions where the two-year deadline does not apply.
Lehman is trying to repay creditors owed more than $600 billion. It has said unsecured creditors might have to wait years to recoup just 10.4 cents to 44.2 cents on the dollar.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555. (Reporting by Chelsea Emery and Jonathan Stempel; editing by Andre Grenon)
http://www.reuters.com/article/idUKN1626071320100916?rpc=44
welcome back Troy. Nice to see you back around.
a coworker of mine was responsible for selling a bunch at .015. I told him he should have told me because I would have bought it. He is done selling. He is off to chase other things. I agreed to sell him some at .50 in a couple months :)