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From the MD&A
Outlook
The Company’s primary focus for the immediate future will be to complete the re-entry of the
recently acquired Matagorda Bay Project. Completion planning for the 127-1 workover is
complete, fabrication of the screens and specialty downhole equipment is finished, all that
remains if for a rig to arrive to commence operations. Securing a rig in a timely fashion has
proven to be more difficult than expected. South Bay Resources (the Operating Partner) had
originally secured a rig to arrive prior to June 1, however, in late May, the rig encountered
unforeseen problems while performing a workover for another operator. These issues have
caused the workover to last several months instead of several days and have therefore seriously
delayed the availability of this rig for our 127-1 workover. South Bay is currently negotiating
with two rig contractors for a rig and is confident that it will have a rig under contract in the next
two weeks.
Management believes that the asset package acquired in the Matagorda Bay transaction ideally
suits the Company’s strategic plan of targeting and acquiring low cost, low risk, quick revenue
generation assets.
Depending on the results of the above program(s), management will determine the Company’s
next course of action.
About getting another rig:
'' That thought did come up in management's discussions but to locate another
rig and begin the process from scratch would take much longer than we expect
the current rig to take. ''
I received this response from Galena, after an inquiry about the Matagorda Bay property:
We have been put in a frustrating situation with our Matagorda Bay property. The company which has the rig at the moment has had technical difficulties and was forced to extend their lease of the rig. We must now wait for the other company to repair their well and complete drilling. It is day-to-day.
Once we do receive the rig on our site, we do expect that progress should be seen very soon after.
Looks like rig hasn't been contracted yet, so no righ has been mobilized!
:(
Rig still isn't on site..
ARCHER management is annoyed at the delays too..
Archer Petroleum leases 320 acres at Matagorda Bay
2011-05-31 23:27 ET - News Release
Mr. Colin Bowkett reports
ARCHER PETROLEUM INCREASES ACREAGE POSITION IN MATAGORDA BAY, TEXAS PROSPECT
Together with its partners in the Matagorda Bay prospect, Archer Petroleum Corp. has acquired the state of Texas lease covering the south one-half of block 150 Matagorda Bay totalling 320 gross acres, the company's proportional share of the cost for these leases being approximately $20,000 (U.S.).
Claude Perrier, chief executive officer, states, "The acquisition of these important additional leases allows Archer to expand its Matagorda Bay acreage position and help insure full development of this important asset."
One last thought:
I think that if Matagorda comes anywhere near to the companie's expectations, this will get to 1$... Lots of big brokers and well informed people have shares in this company..
Coling Bowkett is VERY keen on keeping dilution at a minimum. They only made the PP because they wanted the people working on Matagorda to be well rewarded for their efforts and stay with the company for future projects.
They had lots of interest for the PP,. but only wanted KEY people in on it... Why do you think it wasn't announced everywhere that they were doing a PP?
I tried to get in on it, but i couldn't, due to the reasons listed above.
Hope this helps.
ARCHER PETROLEUM ANNOUNCES PRIVATE PLACEMENT
Archer Petroleum Corp. has closed the private placement announced on May 6 of 3,600,200 units at six cents per unit for total gross proceeds of $216,012, each unit consisting of one share of the company and one warrant to buy one additional share of the company for 12 cents for a period of two years from the closing of the placement. Proceeds of the private placement will be used for general working capital. The shares are subject to resale restrictions that expire on Sept. 26, 2011.
I think we'll have news in the next week or 2.
This management has lots of ties in the oil industry.
Many brokers have their shares around .40.. they'll want to make money on this deal..
One to keep an eye on for sure.
REAL cost of oil extraction will be roughly 14$/barrel i think.
over 500,000 shares traded on the TSX today. Hole completion should be soon, and I expect that we'll see some news in the next 2-3 weeks.
ARK.v now at .065 on the TSX. Goodluck
Pardon my mistake,, I meant to write OIL at such high prices!
I wish I knew... 50 000 traded so far this AM again.
The company knows that they will at least make a little bit of money with this... I don't know why the market doesn't see that.. Especially with gold at record prices.. we have a low market cap... this could be the perfect storm!
550 000 shares traded on the TSX today.. sp down to .075.. ugh :(
Spoke to management today and IF - i do say IF - their assessment of the reservoir is correct, it cuold very well contain several million barrels of oil!
A nice quote for you:
"Bottom line is the profit on a low-case scenario would be excellent, with high side cases being the blue sky."
Things should really start moving quickly by May.
I noticed that their website is being renewed.
http://archerpetroleum.com/index.html
RBC bought 210 000 shares on the Canadian Exchange yesterday... quite interesting!
Archer Petroleum enters into Letter Agreement to sell interest in Greater Jo Mill Prospect
Vancouver, British Columbia, CANADA (April 1, 2011) -
Archer Petroleum Corp (TSX.V: ARK, OTCQX: APEUF, DB Frankfurt: A6VA), (the "Company"), wishes to announce that the Company has entered into a Letter Agreement with a private U.S. based oil and gas company to sell its 25% working interest in the Hull #1 well in the Greater Jo Mill Project in West Texas for approximately $105,000 (USD) gross proceeds.
Claude Perrier, CEO, states: "The sale of this interest accomplishes two important things for Archer:
It provides additional working capital so the company can focus on successfully developing its Matagorda Bay prospect, without diluting the share capital.
It removes an asset from the portfolio over which the Company did not have Operational control. This ensures that the Company will not be subjected to additional, potentially costly cash calls from the Operator of this well.
Archer's Management team is focused on exploiting the opportunity that exists in Matagorda Bay for the Company. Negotiations are underway to contract a rig and we expect completion operations to commence on the 127-1 well bore within the coming 6-8 weeks."
About Archer Petroleum:
Archer Petroleum Corp. is an independent oil and gas company focused on exploration and development in North America. Archer holds properties in Matagorda Bay Texas and Alberta. The Company's shares are listed on the TSX Venture Exchange under the symbol "ARK" and the OTCQX under the symbol "APEUF" and the DB Frankfurt exchange under "A6VA". Further information on Archer can be found on the company's website at www.archerpetroleum.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
ON BEHALF OF ARCHER PETROLEUM CORP.
"Colin Bowkett"
President
For further information contact:
Colin Bowkett
President
Archer Petroleum Corp.
Tel: (604) 683 - 7588
Fax: (604) 683 - 7589
info@archerpetroleum.com
www.archerpetroleum.com
The MD&A is on SEDAR.
Interesting Read...
They will be focusing on the Matagorda Bay property for the coming year. Depending on the payout, they will take in from there..
I believe that they are still looking for other interesting properties, just in case.
Doesn't look like they'll need to do a financing unless the Matagorda property doesnt pay off..
Anyone talk to management lately? Would be nice if someone called them to ask a few questions.
Cheers
:)
Just to clarify, it's $8mil/well!
A little patience here could pay off in spades!
Cheers
DDhawk, it would cost the company over $1mil per well on the bakken property (as mentionned in one of my previous posts).
If Matagora bay produces lots of oil, then I'm all for this deal. As you said, Selling Bakken helps the company to raise funds, WITHOUT dilution shareholders, which is a BIG positive.. All too often, companies dilute just to make money for themselves and the shareholders are left with worthless paper.
I'm happy with management for being consciencious!
News!!!
Looks like we missed this one on Monday!
Archer to sell 50% of Bakken prospect to Triangle
2011-03-14 13:10 ET - News Release
Also News Release (C-TPO) Triangle Petroleum Corp (2)
Mr. Colin Bowkett of Archer reports
ARCHER PETROLEUM ENTERS INTO LETTER AGREEMENT TO SELL INTEREST IN BAKKEN SHALE PROSPECT
Archer Petroleum Corp. has entered into a letter agreement with Triangle Petroleum Corp. to sell its 50-per-cent working interest in the Bakken shale prospect comprising approximately 737.30 net acres for an estimated price of $552,975 (U.S.).
Claude Perrier, chief executive officer, states: "The sale of this acreage provides the company with a non-dilutive means to fund the development of its newly acquired Matagorda Bay prospect which ideally fits the company's project criteria of low cost, low risk and rapid payout. The company is accelerating its efforts in respect to this prospect, and on-site operations are expected to commence within the next two months."
Option grant
The company also announces that it has granted a total of 246,000 stock options to directors of the company. Each option is exercisable into shares at a price of 10 cents per share for a period of five years. The options are subject to the terms of the company's stock option plan.
We seek Safe Harbor.
Some more goodies for the gang here:
''I saw Colin at the show, he was excited and relieved to have this announcement made. Took a little longer than expected, but these things happen. This was an important step in Archer's advancement forward, so I do expect more things to come. An update on the existing projects is to come soon as well.''
I'm hearing that a few newsletter writers wil be writing about Medallion this month..
DDHawk, thanks!
I'm just here to make money, and to share what I learn!
In the markets its all about WHAT you know.
If I hear anything else, I will post it here for sure.
You're doing a great job as moderator.. don't give up!
Cheers,
Pitbul
P.S. Let's hope today continues where yesterday left off for Archer :)
No plans to develop Bakken - it is too risky (there are no offsetting well to provide well control), and it is too expensive ($8m per well).
The company also has a few interesting properties in sight, but they don't want to dilute unnecessarily.
They believe that the success of Matagorda will provide substantial cash flow, the ability to debt finance (if they choose to), and raise funds at much higher levels (if they so choose to).
This is straight from the company!
More and more promising.. I like the way they think!
From the president, Mr. Bowkett:
"There is a lot of potential in this prospect for Archer - its small in the grand scheme but could prove very lucrative if our technical thesis is correct - which is that there will be multiple pay zones in this initial well bore that we can complete sequentially and prove the size of the reservoir associated. Both our hopes and confidence in this asset is very high!"
I will let you know if i hear anything else..
It sure was nice to see it up 20% today.. sadly it closed EVEN :(
Archer Petroleum Corp
Symbol C : ARK
Shares Issued 34,218,047
Close 2011-03-04 C$ 0.095
Recent Sedar Documents
Archer signs definitive deal for 23% in Matagorda Bay
2011-03-07 10:53 ET - News Release
Mr. Colin Bowkett reports
ARCHER PETROLEUM CLOSES PURCHASE AND SALE AGREEMENT ON MATAGORDA BAY PROJECT IN THE GULF OF MEXICO
Archer Petroleum Corp. has entered into a definitive participation agreement with Arbol Energy, a private Houston-based oil and gas company, governing Arbol's Matagorda Bay, Texas, prospect.
Further to news in Stockwatch on Dec. 7, 2010, the participation agreement provides Archer with a 23-per-cent working interest (23-per-cent working interest before payout, 17.25-per-cent working interest after payout) in the 1,280 acres covering Texas State blocks 127, the south half of block 150 and the north half of block 151, and includes three existing wellbores, an existing seven-mile pipeline to shore and an onshore oil/gas handling facility.
Under the terms of the participation agreement, Archer will pay 23 per cent of lease acquisition, geological and geophysical costs ($650,000 gross, or $150,000 net) and 23 per cent of any costs associated with recompletion of the existing wellbores.
A key component of this acquisition is the existence of a fully drilled, cored, logged, cased and shut-in wellbore (the 127-1 well) in block 127. The 127-1 well has multiple pay zones indicated on logs and cores and is expected to be initially completed in the Bol Mex (8,560 to 8,710 inches depth) section of the Lower Frio. Internal analysis of the logs and cores of the Bol Mex zone indicate approximately 115 feet of expected oil pay. The reservoir is estimated to cover a minimum of 350 acres with potential up to 750 acres.
Completion planning has already begun with operating partner South Bay Resources, and on-site operations are expected to commence within the next two months.
Costs associated with the re-entry, perforation and testing of the 127-1 well are expected to be approximately $1.2-million (approximately $276,000 net to Archer).
Internal analysis indicates an additional 200 plus feet of apparent net pay are evident in the logs and cores, and upon successful completion of the Bol Mex interval the company will target these additional zones for future completions.
Claude Perrier, chief executive officer, states: "This new asset package fits well in Archer's strategic plan of low-cost, low-risk, quick revenue generation assets. Archer expects to be able to move from deal origination to on-line operations in less than four months."
Did you say that shareholders profit??! haha.. I wish.. Im down 50% on this play!
Share structure is phenomenal, but it seems to me that they'll need more financing soon.. unless the Matagora Bay wells produce!
What are your thoughts?
Hope they get moving soon!
Hey Guys, Contacted Ali at Tribeca Cap. And he has no more information than us. Also contacted Colin Bowkett (president) and he told me that they were working hard to get the Matagora Bay deal finalized..
I'm getting kinda impatient here.. its 1 month overdue!
Came REAL close to selling this week..
Thoughts?
My pleasure.
News is out.. seems markets dont like it.. :(
http://thenewswire.ca/archives?tnwarchive2=release_id%3D2928
All that information was already on SEDAR.com ...
I don't get it.. What's very nice?!