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I'm satisfied with everything except with section 23.. That well has under performed,it happens. That's why it's sort of dangerous to only invest in just one. Sooner or later you're gonna get a dud. I'm very, very happy with the Chesapeake investment. They drilled the well in late December, it's completed, flowing great and division orders are in the mail. I'm impressed with Chesapeake!!
Superior could do a reverse merger into an existing shell. I was told that Superior management also knows where to get the existing shell if needed.
It all depends on your time horizon. These wells will payback within 16 to 28 months at 85.00 + oil. Depending on oil price and production. A great well is a great well, a good well is a good well and a dud is a dud. There is no in between. Regardless,these wells will produce for 12 to 15 years. So, it is a long term investment no matter how you slice it.
I'm not sure I understand you when you say "SOG will do fine once they re-list." Seems to me all of the progress happened after the de-list. I personally can't wait for the re-listing, but I fail to see how it will affect the day to day operations. Do you care to elaborate? Just curious of your thoughts.
I just wish there was a way for me to buy more stock right now.
I was a Altoona, Pa. boy, about 45 min west from State College, but moved away a little over a year ago. I'm old, so I moved in with my daughter and her family. My health has gone down hill, so it is for the best.
No, I haven't met him. I'm not in Pa. I have spoken to him on numerous occasions over the phone.
Superior Oil and Gas Company, Appalachian Basin Operations - Marcellus / Utica Shale pipe yard.
I have posted these photos with permission.
http://investorshub.advfn.com/uimage/uploads/2015/3/2/eepdmMuncy_Pipe.jpg
Marcellus / Utica Shale Central Pa field trip Superior Oil and Gas Co.Appalachian Basin Operations at Muncy, Pa. This is an EXCO Resources Operated project. If I'm not mistaken, this is a T. Boone Pickens company.
http://investorshub.advfn.com/uimage/uploads/2015/3/2/qcp[wMuncy_Exco.JPG
This is another H&P rig (Rig 608) Superior Oil and Gas Company, Appalachian Basin Operations - Marcellus / Utica Shale.
http://investorshub.advfn.com/uimage/uploads/2015/3/2/fxouu006.JPG
This is one of the H&P rigs ( Rig 628) labeled Superior Oil and Gas Company, Appalachian Basin Operations - Marcellus / Utica Shale. This photo and discription was on SE's facebook page. I was given permission to post this.
http://investorshub.advfn.com/uimage/uploads/2015/3/2/rgpvc010.JPG
Please send the company an email with your request. I know SE has been keeping a list of people who wish to sell and also buy shares.
NEWS UPDATE FROM THE FIELD!!
I'm a friend of Dan Lloyd Jr. on facebook. He has posted many new pictures from the field and meetings being held at Penn State University. There are several photo's of what appears to be large tracts of acreage and at least 2 separate Helmerich & Payne drilling rigs awaiting to be rigged up. It is my belief that Superior now has established a footprint and has operations in Central Pa. It appears to me that things are moving forward a lot quicker than I could have ever imagined! I think there could be some very big suprises in the upcoming months!!
If I knew how to post photo's here I would post them.
I see that the Superior team was all over Pa yesterday. Judging from Dan's facebook page they were targeting the Muncy, Pa area. This makes sense to me because of the connections to the operators that SE has in that area. I know that there is a lot of work to be done here, but I think this thing is going to be built big..
Yes, I saw the picture of the group. It didn't look like any McDonalds that I was ever in. I'm sure SE doesn't mind paying the tab, after all he is the one responsible for paying for almost everything else to this point. I'm just thankful we all have him to pay the tab.
SE is a State College boy. He is one of the original founders of Rex Energy (REXX). Now we can leverage Dans knowledge and connections in Oklahoma, with SE's knowledge and connections in Pa and Ohio! Superior might have just become a national player..
I just saw on Dan Lloyd's facebook page that he is in Pa with John Helton the company geologist and SE. They are all over State College and the surrounding area. Dan Has pictures of H&P Flex Rigs from a Pa. site!
I also spoke to a friend of mine in California who spoke with Dan today. Superior is opening a State College office to acquire acreage and develop the Marcellus and Utica Shale. I knew with SE involved, it would only be a matter of time before this would happen!! This is big time news!! I wonder if they will announce their plans in the newsletter? I want to know more!
I bet Prickly Pear and SE are stashing those hoarded shares in the tornado shelter!
WOW! You're right! LOL!! Bye golly I didn't notice!
I can't answer that for you. I'm in the same boat on that well. I made the decision when I started to participate, if I missed a subsequent well, I just missed it. I invested a total amount that I could live with and then as the money came back to me I would put it in new wells. This would allow me to pyramid my earnings. I don't think it's anything to loose sleep over. The well costs are going to come down 20 to 30% from where they are. (My opinion from past oil declines.) Chesapeake is already almost a million less than Devons AFE. There are going to be plenty of opportunities.
I'm not sticking up for anyone here, but you don't know the situation. I only know part of it. Let try me explain. Superior only has one shot at this re-listing process. Superior had four wells drilled and completed on their own leases. Late last (December) year Superior was presented with the opportunity to participate in 4 additional wells with Devon and Chesapeake. It was felt by management that these wells should be included in the filings for the re-list as the company just doubled it's well count and possibly it's reserve base. It is these last four wells that have been just drilled and completed just weeks ago.. Don't forget, the most up to date financials are extremely important to oil company's valuations, borrowing base and the ability to raise capital.
I also must be the only one to have seen the company updates on the newsletter concerning the filing process?? Both of you guys in the past have pi$$ed and moaned about the lack of communication from the company. Now you get a monthly newsletter and you're still moaning?? Maybe you could give them some idea on the content that you would like to see?? Or maybe just unsubscribe yourself from it since it troubles you so.
I'm sorry, if I'm a little touchy. I do know that not many, if any here on this board have as much invested here as I do. I for one am very happy to have people that are "so well versed" in the oil industry involved in this company. It is those peoples knowledge that is going to make us all a nice some of money.
Yes, I have have email my questions to them and always get a timely answer.
As far as I know everything is ready except the reserve reports. There is nothing Superior can do at this point , but to wait on the engineering company. Superior is not a big fish, so they might not be a priority. I was a active petroleum engineer for 40+ years. I've had to work alongside these firms to complete that portion of our filings, so I know how long these guys can drag things out. The good news is, we are moving forward and the process is advancing.
Yes, that is correct! That is why SE has always favored not being lease heavy like a lot of company's are. He always has stated that it is all about exposure to well bores. With exposure to well bores you have exposure to a larger reserve base. It took me a while to understand when SE would say most leases are liability's, not assets in most cases. Leases cost money and may not produce much of anything. With exposure to well bores, where there are proven undeveloped reserves, you have low risk projects and bookable reserves.
I have not heard anything new regarding the Form 10 or when the engineering reports will be done. This is something that I would have done for the company. I would be looking for the monthly update soon.
This is a buy and long term hold if I have ever seen one!!
I agree with you 100%!!!
You got that right!
You're right. Why discuss it. It's never going to relist. What can we talk about now? Tom Brady's deflated balls??
You don't think that will happen otherwise? I disagree. I don't get why people want to hold on to the old, when we have been blessed with the opportunity to start again clean and fresh, (with growing income and assets) just like a new company. It makes no sense to me. Maybe I'm missing something??
AGREE 100%
These guys have shown me that they have a plan and I trust that they have a much bigger plan than anyone can realize.
You said what I am thinking. This is not the standard reverse split penny stock situation. There are people here who have a clue about oil, company building and high finance, with big time track records. Something Superior lacked before delisting. I just don't see how it could do anything but add credibility and respectability to the cause.
As I said before, I'm not a Wall Street guy. I have been an investor in energy for most of my life. It seems hard for me to believe that when a company that is basically, completely starting over. With producing assets and adding more producing assets on a regular basis, you are saying the stock price would decline on a relist? Is that because your coming out of the gate with a new structure and a actual income producing company with assets, when there was none before? I guess anything is possible in this game. I don't agree with that logic. This is not a case of (WGAS) or others with no assets, no income and none of either in sight.
I look at it this way. When Superior was delisted, we didn't really know what they had for sure. We knew they had zero income, and almost zero hopes of getting any. Through the efforts of many, we now have income and producing assets worth dollars! The management team at Superior is adding to that income and asset base on a consistent basis.
To me Superior is a completely different company than what it was two years ago. I like that. I want it to continue to be a completely different company. Here is the chance to build something completely new and special. I for one don't want a penny stock oil company. I want something legit, that is well run and taken seriously by the industry, by investors and by partners. I was invested in Kodiak as well. They were not a well run company. They succeeded because they were in the right place at the right time. Their management team ran then into tremendous pile of debt and they can be glad that they sold when they did. What would the stock price have been if they would have had a manageable OS share count, even with the debt?
I will let this up to SE and Greenberg. They are smarter than I am.
I have never been big on reverse splits with penny stocks. In this case I favor it because there seems to be constant and consistent value being added. I too would like to see a company built here like REXX, AXAS or CPE. I would love to see the company at some point meet the listing requirements of a higher/better exchange and have better access to capital and professional investors. I would like to see an invest-able and trade-able stock. We would all benefit from that. Just my thoughts, I'm not a Wall Street guy..
My vote would be for it to happen at time of relist. I think that is when it will be.
NGP Energy Capital Management and Five Point Capital Partners have raised recent energy funds
January 28, 2015
Now is an opportune time for companies looking to enter the U.S. oil and gas industry, says John Sloan, vice chairman of Dallas investment bank Allegiance Capital Corp. Declining oil prices coupled with stagnant demand are causing trouble for oil drilling operators and their supporting businesses, paving the way for distressed-investment investors and other groups to buy assets on sale. The opportunity should exist for 18 to 24 months, which may be why we have seen private equity firms close funds that are focused exclusively on energy lately. In January, NGP Energy Capital Management closed an energy-focused private equity fund with more than $5.4 billion in commitments, and before that, Five Point Capital Partners closed its inaugural fund, which will also make energy investments, with $450 million in commitments.
Recent oil and gas-related deals include Omega Capital's purchase of M&M Environmental earlier in January, and Kinder Morgan's $3 billion deal to buy a pipeline network from Hiland Partners, also in January.
How will low oil prices affect M&A?
The game has changed, but the game's not over. We are expecting a relatively robust M&A market in the oilfield services sector for 2015. A lot of those transactions will be situations where companies need to merge with another financially stronger business, and some of those will be distressed situations, where companies need to realign their capital structure to accommodate a down market. There will be opportunistic investing in the oilfield services sector – several investors are looking at this as a real buying opportunity. The nature of what is going to happening in M&A is going to change, but we're going to see a robust level of activity.
Expect to see the next six to 12 months remain difficult. We may not have seen the bottom yet in terms of oil prices. As we move into the second half of the year, the consensus is we are going to see oil prices come back up. When that happens, we are not going to go back to the kind of environment we saw in 2012 or 2014; there will be valuations we saw for companies similar to what they were before the cycle really took off. We expect to see a recovery, and that recovery is going to be a new normal. We are not going to get back to the levels we just experienced.
A lot of people look at this as an investing opportunity where they could buy production or assets at low prices. There is always a contrarian investor, and that investor today would say this is a great time to be buying. I can see the attraction of putting together a fund.
This investment thesis hinges on oil prices going back up. Will we see that?
It's ultimately a supply and demand issue. Over the course of this past year, production with all the shale plays has increased rapidly, yet the demand in the U.S. has been flat. So at some time, supply is going to exceed demand. We've seen a dramatic reduction in prices – they have come down farther than we might have imagined. This has historically always shifted back in the other direction.
New drilling is dropping dramatically on a monthly basis, it is uneconomical now to drill oil and gas, but at some point in time the demand will catch back up with the supply. Companies will complete the wells they are drilling now, and then they will only drill additional wells where they have a requirement to do so in order to maintain their property leases. That's the activity level you will see going forward. It's not enough to keep prices so low.
What factors are influencing oil demand in the U.S.?
In the U.S. there are new technologies that are impacting the demand for oil and gas. Electric cars are a great example, and we are seeing alternative sources of fuel, including wind energy and solar power. Consumers in general have learned how to be more efficient in their use of petroleum products just because the prices have been high.
Which companies will look to make acquisitions?
There are a number of investors, strategic and private equity groups that are well capitalized and have the financial resources to invest in a down market. They will look for opportunities to put their capital to work and expand their businesses. They can purchase assets at attractive prices – prices were substantially higher just a year ago. There is also the pure distressed investing world. If a company has trouble with its bank loan, a distressed investor could work out an arrangement to infuse capital into that company.
Are oil drilling companies or energy services companies the targets for these acquisitions?
It will run across the entire gamut of the oil industry.
Do you have any advice for energy companies looking to avoid distress?
Take a hard look at the capital structure – Is it appropriate for a business in a down market? Typically the fundamental question is: Does the company have too much short-term debt, and should it restructure? Non-bank financial institutions provide loans that can be paid out over a longer period of time.
http://www.themiddlemarket.com/news/energy/investors-flow-into-oil-gas-space-254452-1.html
All I really know is... There are people here that can make it happen in a big way. Nobody gave Superior a chance to do anything. Look at where we are today and where we could be tomorrow.
I really don't know how to value a company with accuracy. But your well numbers are well within reason for the first year of production. Who knows, there could be multiple projects going on at once.
Here is the other thing that I will throw out there. I know that over a year ago SE was a very big proponent of a reverse split that would put the company's share structure around the 30 to 40 million outstanding mark. I remember him saying that the company needs to become investment grade and that it needed to become the darling of the investment community. It needs to have a solid base, low overhead, a fantastic resource base in multiple plays and the ability to raise capital on many different fronts.
I don't know what SE's title here is or official involvement. He no longer shares any information with anyone. I believe that maybe you could call him a consultant. I don't really know. I think he is a helpful soul by nature.
I will share this because I don't think he cares. SE is a former Merrill Lynch guy. He was personally selected, educated and groomed by William Schreyer another State College guy. His knowledge and industry connections are far reaching. He was a member of the management team that took over an almost bankrupt WRT Energy, shaped it into what is now Gulfport Energy. He was a co-founder / original investor of Penn Tex Resources that later grew into Rex Energy and took it public. He had his hands in developing Eclipse Resources. He has been a personal adviser to Lukas Lundin. He runs several of his own company's now as well. I think he see's a great opportunity here. Can you see why I am so excited?? Don't forget, good people bring more good people.
Dan is more of the land deal maker guy. SE is a trained Hydro-geologist and Seismologist. SE can tell you where you need to be drilling and where you need to stay away from. He also is well connected to the affluent investor, private equity groups, family offices and investment banks. SE is BIG MONEY plain and simple.
SE works directly with the CEO's of the energy company's. He does not cut deals with land men. You do not get into direct deals with Devon, Chesapeake, Newfield or Continental unless they like you. SE has in the past put together deals in the past ranging from 50 to 350 million on a regular basis. Superior is just not quite ready for that yet, but I think is getting closer.
Also the 7% you refer to is a floating figure based upon the amount of acreage owned in the section as that effects the amount of well ownership. There are a couple of wells that Superior owns a very large % of. More than the quarter section. I hope I'm explaining this clearly...
Think about this. Let's say that Superior puts together a package with Devon for 25,000 acres. 75/25.. That is 39 sections. There can be 16 wells drilled per section or 624 wells total. This could be a 8 year (78 million a year) scale able project to drill and develop 1/3 for a 1/4 deal. This would require roughly 624 million in capital by the investor group for their 1/4. These deals are done every day and we have the guys to get it done! I know I'm talking big here, but we have the guys that can and have pulled this stuff off in the past! I believe it will happen in the future! Think of the possibilities... Eve a deal a quarter of this size... Devon wins, Superior wins, the investor wins and the shareholders win.