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Dear Sir or Madam
Before you rant on about "BS Propaganda" you should refer to the following.
You are certainly entitled to your own opinion, but not to your own facts.
Pan Orient Announces 2013 Year-End Heavy Oil Resources for Sawn Lake, Alberta Project of Andora Energy Corporation
Apr 09, 2014 - 08:30 ET
CALGARY, ALBERTA--(Marketwired - April 9, 2014) - Pan Orient Energy Corp. (TSX VENTURE:POE), on behalf of its 71.8% owned subsidiary Andora Energy Corporation ("Andora"), is pleased to release the December 31, 2013 National Instrument 51-101 compliant resource evaluation for Andora's oil sands project at Sawn Lake Alberta, Canada, as evaluated by Sproule Unconventional Limited ("Sproule"). The evaluation included all of Andora's Oil Sands Leases in Sawn Lake based on exploitation using Steam Assisted Gravity Drainage ("SAGD").
Andora is focused on developing the bitumen resources at the Sawn Lake property in the Peace River Oil Sands Region using SAGD development. Andora received regulatory approval for a demonstration project at under the Oil Sands Conservation Act from the Energy Resources Conservation Board and approval from the Government of Alberta under the Environmental Protection and Enhancement Act prior to 2013. The first step towards determining the commercial viability of the SAGD recovery process at Sawn Lake is completion of Phase 1 of our SAGD Demonstration Project to provide an indication of the productivity of the reservoir and the amount of steam injection required to produce the bitumen, which are key components in assessing the potential for SAGD development at Sawn Lake.
The demonstration project is located in the Central Block of Sawn Lake where Andora is the operator and holds a 50% working interest. Phase 1 of the SAGD demonstration project in 2013 / 2014 consists of drilling one SAGD well pair, construction of the SAGD facility for steam generation, water handling and oil treating, and installing water source and disposal facilities. The SAGD well pair was drilled in the fourth quarter of 2013 to a depth of 650 meters and have a horizontal length of 780 meters. Final construction of the SAGD facility is currently being completed and steam injection at the Sawn Lake SAGD demonstration project is scheduled for April 2014. After three months of steam injection, bitumen production is anticipated by the end of July 2014.
Summary and Highlights of Sawn Lake, Alberta Contingent Resources as at December 31, 2013
The oil sands project at Sawn Lake Alberta as at December 31, 2013 was evaluated by Sproule. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The contingent resource volumes estimated in the Sproule report are considered contingent until such time as commercial recovery has been confirmed with SAGD production rates from a SAGD pilot, regulatory approvals for commercial SAGD development have been obtained and the company has a firm commercial development plan and funding for the commercial development. Contingent Resources are further classified as "High", "Best" and "Low" in accordance with the level of certainty. There is no certainty that it will be economically viable to produce any of the reported contingent resource volumes.
The December 31, 2013 contingent resource report by Sproule represents a mechanical update incorporating new forecasted prices for crude oil, natural gas and exchange rates, and revised estimates of capital expenditures associated with drilling SAGD wells. There is no change from the estimate of contingent resource volumes as at December 31, 2012 prepared by Sproule. The net present value of the "Best Case" (discounted at 10% before income tax using forecast prices) attributed to Sawn Lake contingent resources increased by 14% to $557 million as a result of a 6% increase in crude oil prices, a 5% decrease in forecast natural gas prices and a 10% decrease in the estimated capital cost for drilling of SAGD wells, partially offset by a 12% increase in the bitumen differential and a 20% increase in Crown royalties.
Sawn Lake "Best Case" contingent resources of 214 million barrels of bitumen attributed to Andora's working interests, or 154 million barrels attributed to the 71.8% ownership interest of Pan Orient in Andora, have been assigned almost entirely in the South and Central Blocks of Sawn Lake. Andora is the operator of these lands and holds a 100% working interest in the 16 sections of the South Block and currently holds a 50% working interest in the 12 sections of the Central Block. Contingent resource volumes are only assigned to working interests and are not assigned to GORR interests.
Net present value of the "Best Case" (discounted at 10% before income tax using forecast prices) attributed to Sawn Lake contingent resources for the working interests and the GORR interests is $557 million for Andora, with $481 million attributed to the working interests. The amount attributed to the 71.8% ownership interest of Pan Orient in Andora is $400 million for the working interests and the GORR interests, and $346 million to the working interests alone.
Net present value of the "Best Case" (discounted at 10% after income tax using forecast prices) attributed to Sawn Lake contingent resources for the working interests and the GORR interests is $364 million for Andora, with $307 million attributed to the working interests. The amount attributed to the 71.8% ownership interest of Pan Orient in Andora is $262 million for the working interests and the GORR interests, and $220 million to the working interests alone.
Andora Sawn Lake, Alberta Interests at December 31, 2013
Gross Sections Working Interest
Additional Interest
South Block (Andora operated) 16 100%
Central Block (Andora operated) 12 50% 3% GORR on non-owned 40% working interest
North Block (Andora operated) 9 100%
North Block 51 10% 3% GORR on non-owned 80% working interest in 24.5 sections
88
Note: GORR interests sold in March 2014
Summary of Canada Contingent Bitumen Resources as of December 31, 2013, as provided by Sproule
Marketable Resources - Company Gross (million barrels)
Andora
Pan Orient 71.8%
Contingent - Low Estimate "1C" 194.7 139.9
Contingent - Best Estimate "2C" 214.4 154.0
Contingent - High Estimate "3C" 251.0 180.3
Sawn Lake Oil Sands Project
Summary of Net Present Values Before Tax as of December 31, 2013
Contingent Resources as provided by Sproule for Working Interests and GORR Interests
Andora 100% (Cdn$ million)
0% 5% 10% 15%
Contingent - Low Estimate "1C" 3,740 1,292 453 117
Contingent - Best Estimate "2C" 4,877 1,599 557 160
Contingent - High Estimate "3C" 6,720 2,142 747 228
1 Resources assessed at forecast crude oil reference prices and costs.
2 The reference prices for crude oil per barrel (Western Canada Select WCS 20.5 API adjusted for quality and transportation in Canadian dollars) are $77.81 for 2014, $75.02 for 2015, $75.29 for 2016, $85.36 for 2017, $86.64 for 2018, and increase at 1.5% per year thereafter.
3 Oil revenue for these resources is equal to ~70% of the forecast crude oil reference price.
4 The reference prices for natural gas (AECO-C Spot price per MMBTU in Canadian dollars) are $4.00 for 2014, $3.99 for 2015, $4.00 for 2016, $4.93 for 2017, $5.01 for 2018 and increase at approximately 1.5% to 1.7% per year thereafter.
5 Future development costs for Contingent Resources which have been deducted in calculating the before tax NPV:
- Low Estimate - CDN$2,165 million with the drilling of 390 gross well pairs and building facilities
- Best Estimate - CDN$2,169 million with the drilling of 390 gross well pairs and building facilities
- High Estimate - CDN$2,196 million with the drilling of 390 gross well pairs and building facilities
6 The engineered values disclosed may not represent fair market value.
7 There is no certainty that it will be commercially viable to produce any portion of the resources.
Sawn Lake Oil Sands Project
Summary of Net Present Values Before Tax as of December 31, 2013
Contingent Resources as provided by Sproule for Working Interests and GORR Interests
Pan Orient 71.8% Interest in Andora (Cdn$ million)
0% 5% 10% 15%
Contingent - Low Estimate "1C" 2,687 928 325 84
Contingent - Best Estimate "2C" 3,504 1,149 400 115
Contingent - High Estimate "3C" 4,828 1,539 537 165
1 Resources assessed at forecast crude oil reference prices and costs.
2 The reference prices for crude oil per barrel (Western Canada Select WCS 20.5 API adjusted for quality and transportation in Canadian dollars) are $77.81 for 2014, $75.02 for 2015, $75.29 for 2016, $85.36 for 2017, $86.64 for 2018, and increase at 1.5% per year thereafter.
3 Oil revenue for these resources is equal to ~70% of the forecast crude oil reference price.
4 The reference prices for natural gas (AECO-C Spot price per MMBTU in Canadian dollars) are $4.00 for 2014, $3.99 for 2015, $4.00 for 2016, $4.93 for 2017, $5.01 for 2018 and increase at approximately 1.5% to 1.7% per year thereafter.
5 Future development costs for Contingent Resources which have been deducted in calculating the before tax NPV:
- Low Estimate - CDN$1,555 million with the drilling of 390 gross well pairs and building facilities
- Best Estimate - CDN$1,558 million with the drilling of 390 gross well pairs and building facilities
- High Estimate -- CDN$1,578 million with the drilling of 390 gross well pairs and building facilities
6 Results represent Pan Orient's 71.8% interest in Andora.
7 The engineered values disclosed may not represent fair market value.
8 There is no certainty that it will be commercially viable to produce any portion of the resources.
Subsequent Event - Sale of GORR Interest in March 2014
In March 2014, the 3% gross overriding royalty ("GORR") on a portion of the non-owned working interests in 12 sections of the Central Block and 24.5 sections of the North Block was repurchased by a joint venture partner with $2.7 million paid to Andora. This sale of the GORR by Andora was part of an agreement with joint venture partners that allowed the demonstration project to move forward and enabled the joint venture partners to fund their share 50% share of the demonstration project. The net present value of the "Best Case" (discounted at 10% after income tax using forecast prices) attributed to Pan Orient's 71.8% share of the Sawn Lake contingent resources for the GORR interests is $55 million on a before tax basis and $41 million on an after tax basis. The sale price of the GORR reflects that commercial viability of SAGD development at Sawn Lake has not yet been established, and that key economic parameters need to be determined with the demonstration project
The December 31, 2013 evaluation of Sawn Lake "Best Case" contingent resources attributed to the working interests of Andora is 214 million barrels of bitumen and an associated net present value (discounted at 10% before income tax using forecast prices) of $481 million. The amount attributed to the 71.8% ownership interest of Pan Orient in Andora is 154 million barrels of bitumen and an associated net present value (discounted at 10% using forecast prices) before income tax of $346 million, and $220 million on an after tax basis.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
Neither 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 release.
Neither 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 release.
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO (located in Bangkok, Thailand)
jeff@panorient.ca
Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770
Best way to deal with the game players is to move to a higher level exchange. Pretty sure they can do this, once production starts and they have actual revenue. That is the usual progression for juniors. By the end of the year, DWOG should be showing steady monthly cash flow from the pilot project. Most logical exchange for them to move to would the Toronto Stock Exchange Venture (TSX-V). There are many juniors on here. It will help by widening the pool of potential investors.
Right now, Canadians can't ask their broker to trade on over the counter stocks. Moving to TSX-V would let them get analyst coverage, and actually allow brokers to discuss the stock with potential investors. Under present Canadian investment rules, brokers can't even mention a stock like DWOG, and most brokerages are forbidden from accepting over the counter share certificates. A bigger investment pool will make it less easy for manipulators to play with the stock price.
Going by the Pan Orient release, if they are producing this summer, DWOG should start making plans to move to another exchange by the end of the year.
Are some of the schemers behind DWOG's past troubles trying to manipulate the DWOG stock?
When they were running their TAMO fiasco they had to take a $63.5 million loss on the value of TAMO after they got caught doing an end-run on DWOG shares.
I'm wondering if they still have an ownership block of DWOG shares that they're dumping to drive down DWOG just out of sheer spite and jealousy, now that TAMO is history.
Steaming in April, according to PanOrient press release out today, with production in July:
http://finance.yahoo.com/news/pan-orient-announces-2013-end-123000668.html
Have a look at their reservoir evaluation. Add in the DWOG holding, and there's 450 million barrels of recoverable bitumen down there.
From the release, looks like DWOG repatriated the over-riding royalty on their lands from Andora. All good news. Now that POE is reporting, it's basically speaking for all three companies (Andora is operator) which may be why our guys don't have a release of their own.
This is common practice when three parties are invested in a property and one is the operator. Usually, it is the operator that takes the lead in making the announcements. Watch the Pan Orient filings, that is where you would expect to see the first announcement. (Pan Orient owns more than 70 per cent of Andora, and is a listed company).
For all of us who want to know what the project might look like when it's built out, here's an excellent explanation from the adjoining Shell project, announced about six months ago, that is scheduled to produce 80,000 barrels a day.
http://www.shell.ca/en/aboutshell/media-centre/news-and-media-releases/2013-new-and-press-releases/carmon-creek.html
Wayne, I think that between coordinating things with the three companies, they won't want to make an announcement until they know for sure that everything is working the way it should. With above freezing temperatures forecast for next week, I'm looking for them to finish all their final testing in the next couple of weeks then it is onward to first production.
Great! I agree.
Looking at the trading volumes, it looks like someone who amassed a lot shares in the three cents to seven cents days is cashing in. Every few days, fairly large blocks trade. If this party had put together a couple of million shares, and is making five to six times what they paid, you can see why they would take a "cash in" decision. All this to say that those of us who are in for the long haul should not worry about the share price being in the twenties. By this fall, I am sure we will see a very different valuation.
Just can't catch a break with the weather. Forecast for Red Earth (nearest town to the Sawn Lake site) is -17 for tomorrow morning, -23 with the wind chill. Cold has settled right in! Conditions like that, the guys can work efficiently for about half a shift. Looks like it will finally go above zero at the start of April, hope they work overtime to get everything finished whenever they have a day above zero.
Here's a link to an article by a DWOG director. Interesting stuff.
http://www.albertaoilmagazine.com/2014/01/alberta-carbon-pricing-model/
Here is a link to a story detailing the suspension of new steam projects:
http://www.thetyee.ca/News/2014/03/05/Alberta-Regulator-Halts-Steam-Bitumen-Mining/
Alberta has just suspended in-situ production using steam in part of the oil sands and won't be approving new projects for a while, if not for years.
We're pretty lucky DWOG already has its license, and can sell production from its approved demo projects. Even 500 barrels a day should provide good cash flow. It will be a very good year.
Hi Wayne
I had an expert analyst of reservoir economics go through the DeGolyer&MacNaughton reserves report filed on the SEDAR system (you only get it if you specifically search 51-101 filing for DWOG, just clicking on their filings doesn't get you the reservoir economics), including all the tables and assumptions, evaluating DWOG's share of the reservoir.
So after the farmout to Maurel and Prom, and using conservative (high) cost estimates, DeGolyer says that on the portion of DWOG it evaluated (less than half their acreage), Deep Well will earn $5.5 billion net revenue after paying for capital costs, production costs, and extraction costs. And that's on less than half the reservoir (he says your 37 per cent might be a bit arguable because you have to look at the risk factors affecting yield on different sections; he lost me with the explanation, but says there's a technical reason why it's safer to say less than half the reservoir).
Good reason to be patient!
DWOG is assigned about 196 million barrels of commercially recoverable (profitable) oil on an independent evaluation of less than half their acreage, by DeGolyer and MacNaughton. This is in a Canadian regulatory filing that can't be released as a news release in US. Check out Yahoo Canada (yahoo.ca) if you want to read the release. Those numbers are pretty impressive, considering they gave up half their working interest in 12 sections as part of the investment deal with Maurel and Prom.
Hope this melting weather doesn't mess up the roads. Those bogs get slushy really fast. If the equipment is already up there the crews should be starting to assemble it on site.
This appointment may be designed to bring in the next big phase in financing. Getting to 30,000 barrels per day production will need at least one billion dollars worth of capital. Some of that can be leveraged against production, more will have to be raised in the investment community.
The first big step was bringing in France's second largest oil company to the reservoir. The second was bringing in Mr. Node-Langlois, who has been a trusted steward of several billion dollars of private capital in Switzerland for three decades. Now, with Mr. Youyou taking a very active role in leading the board, you can see there is a determination to court very big league investment, with credible players at the table.
And the shares are trading today at a significant discount to the price paid by Maurel et Prom.
I am in for the long haul here.
First indication that they will use their leases to leverage production financing. I saw this before Christmas, but it didn't register until I read it a few times. Looks like they are waiting to prove out the economics of the SAGD before they proceed to the HCSS pilot previously announced.
http://www.maureletprom.fr/joomdocs/DEEPWEEL_MAU-9DEC13_EN.pdf
Wonder when the French group will take a more active role in the company.
They may be required to submit an annual update of any changes to ownership in the reservoir (they have not yet reflected the 10 per cent additional working interest) in order to be consistent with Canadian disclosure laws, since the operator is a Canadian-domiciled company.
Besides which, the changes being proposed to Canadian disclosure would work out in DWOG's favour, by allowing more leeway in how their contingent resources are reported:
http://osc.gov.on.ca/en/SecuritiesLaw_rule_20131017_51-101_rfc-disc-oil-gas.htm
It has been two years since the last independent third party evaluation of reserves and contingent resources of DWOG working interest (DeGolyer&MacNaughton, November 2011). I feel confident the company will need to release another independent evaluation, if not by D&M then by someone nearly as reputable (D&M's main guy in Calgary is part of a United Nations panel coming up with a standard worldwide measurement of reserves and resources). With the share earned by M&P, and the acquisition of extra working interest through a settlement with a defaulting partner, there is certainly grounds for a new reservoir study. It is also useful to remember that once production begins, a portion of contingent resources could be reclassified as proven reserves by third party evaluation.
It's not a done deal, but well on the way. Very good news for DWOG, and a confidence builder for the investors Horst and his outstanding directors can go after, for the $2 billion needed to get to 40,000 barrels a day:
http://www.theglobeandmail.com/news/british-columbia/bc-fights-for-bigger-slice-of-northern-gateway-pie/article16087344/
Merry Christmas and Happy New Year to all on this board. Here's to a BANNER YEAR in 2014 for DWOG!
The banker Pascal Node-Langlois who just joined their board is famous in Geneva for his career in the last 35 years, and currently manages private wealth funds. Here is an interesting article if you can read French. Otherwise, Google translate will give you an idea of what the media is saying about him. This is hugely impressive and makes it pretty well certain that he was brought on board to make sure the full value of DWOG is achieved in the markets and among investors.
http://www.bilan.ch/argent-finances-exclusif/la-gestion-independante-se-reinvente-geneve
I'm a really old guy, don't even know what a sticky is, or understand what a moderator does. Appreciate the offer, but as I don't have a clue about the role, I'll pass. Thanks for all your hard work, it's really appreciated.
Thanks, Wayne. I note with great interest from today's Wall Street Journal that Horst has welcomed a big-money expert to the board, Mr. Pascal Node-Langlois.
http://online.wsj.com/article/PR-CO-20131209-904406.html?dsk=y
I went on the website of Mr. Node-Langlois's company the Voltaire Group and found that Mr. Malik Youyou (DWOG's largest shareholder) is a Director of the Voltaire Group.
I believe that with this appointment, they are preparing to put together the $2 billion capitalisation they will need to move to daily production of 40,000 to 50,000 barrels a day, after the current SAGD pilot and the subsequent HCSS demonstration project.
I have no plans to sell any time soon!
Courtesy of Meg Energy, this is what a completed steam generation facility looks like, once it is ramped up to produce several thousand barrels per day.
http://www.megenergy.com/operations/steam-assisted-gravity-drainage-sagd
Just heard from a guy working on the assembly that the equipment arrived from the United States and is in a storage yard in the greater Edmonton area. Apparently they will truck it up to the job site later this month, after the muskeg roads are frozen solid. They are "ahead of schedule" and it is a virtual certainty that they will be steaming by late January (usually a four month process) with first production by the start of May. Wayne, can you please ask Horst how far this is true? Thanks.
Penn West seems to be very active in the Sawn Lake area since its new management took over. They have the light, sweet crude leases that lie about one kilometre beneath DWOG's heavy oil leases. Wonder if DWOG is making arrangements with Penn West to get core samples, mud-logging and other drilling data as the Penn West wells pass through the DWOG pay zone. Could the people on this board who are in touch with the company, ask Horst?
When either of you talk to Horst, ask him what they are doing to get the stock more widely traded. Until you can buy and sell on a Canadian exchange, it is really hard for Canadian investors to take a position. if we had some Canadian trade on DWOG, volume would go up and I am betting prices will too.
For those on the board who might want to show family and friends exactly how the Deep Well production process is going work, here's a link to a great video that clearly shows and explains it all:
http://osqar.suncor.com/2013/06/sagd-in-a-nutshell.html
Petermic, Garry and Bill Tighe are the principals behind OCTX, Zentrum energie Trust, and CEC North Star, the companies all related in this.
Previously, they had run successful pump-and-dump, using the same and similar properties, under thenames Cougar, Kodiak and Tamm Oil.
The OCTX holding is actually a 32 per cent share in a privately held company called CEC North Star, which in turn is financed by Zentrum Energie. both CEC North Star and Zentrum are Tighe-controlled entities.
You have seem the pump about the well they have drilled, the success they have had, how they have moved into the production phase, and even a video of the production method. And you have valuation of Ersnt Schlotter, swho says the property could produce a fortune of up to several billion dollars.
This is meant to create the impression that this a lucrative property about to produce oil and bring in lots of money for shareholders.
Then you look at what OCTX filed with the Securities and Exchange Commission, a couple of weeks ago, in their 10Q:
The Mineral Rights Agreement contains the following terms, amongst others:
·
An 8% Royalty of Gross Monthly Production to be paid to Zentrum;
·
On or before December 31, 2013, the Company shall have drilled a minimum of one (1) Exploration Well to Contract Depth at locations to be provided by Zentrum and agreed to by the Company on Section 9 89 R3W5 of the Trout Property;
·
On or before June 30, 2014, unless otherwise mutually agreed to, the Company shall perform a 3D seismic program on Sections 4,5, 6 89 R3W5 of the Trout Property. A copy and rights to the seismic data shall be provided to the Vendor within 60 days of the completion of the project;
·
On or before December 31, 2014, unless otherwise mutually agreed to, the Company shall have drilled a minimum of one (1) Exploration Well at a location to be mutually determined based on the 3D seismic above;
·
Any default in the terms above will terminate the Mineral Rights Agreement and the Company shall return the Trout Property to Zentrum.
When you have a eight per cent gross overriding royalty on production, that means almost the entire potential profit margin is consumed by the GORR. What is left for investors?
Moreover, the oil "that has moved into porudction phase" is described in the legal document as an exploration well that will lead to a 3D seismic program: a prliminary step to delineate the reservoir, which seems to be many years from production.
Doubt anyone is going to sell a significant chunk below 60 cents. Might be a few hundred shares traded here and there at these prices in the 40 cent range. But all that's available for early profit takers is gone. Remember this is a closely held company, with about 70 per cent of the shares in the hands of the board of directors (see SEC filings under Edgar). With the small amount available for public trading, demand (and price) will go up after production begins.
To save folks a lot of reading, this is the behaviour pattern I'm referring to, extracte from one of the judgments:
"[30] The conduct of Mr. Tighe, the primary representative of the Defendants, supports the
appointment of a receiver. Although the Defendants submit that the assets that are the subjectPage: 8
of the order are secure, there is troubling evidence that the mortgage-backed debentures appear
to have questionable value, that the $200,000 that was supposed to be in Mr. Patterson’s trust
account does not exist, that the Georgia Pacific cash account that was supposed to contain
$986,000 is not actually a cash account at all, but rather a trading account. Mr. Tighe’s
affidavits and cross-examination on affidavits do little to clear-up these matters, and instead
add to the apprehension that these assets are of less value than represented to Paragon or that
they in fact do not exist."
Considering how many times the CEC North Star lands in which OCTX has a 30 per cent interest have been cycled and recycled, there may be grounds "that these assets are of less value than represented."
When you're ready to sue the Tighe boys for the investment you're about to lose on OCTX, the judgments against Garry listed below might give you some useful information on the tactics and strategy employed by the brothers.
http://www2.albertacourts.ab.ca/jdb/1998-2003/ca/Civil/2002/2002abca0160.pdf
http://www2.albertacourts.ab.ca/jdb/1998-2003/qb/Civil/2002/2002abqb0430.pdf
http://www2.albertacourts.ab.ca/jdb/1998-2003/ca/Civil/2002/2002abca0082.pdf
http://www2.albertacourts.ab.ca/jdb/1998-2003/ca/Civil/2002/2002abca0072.pdf
Apparently there's a six- to nine-month waiting list for the main boiler in a steaming plant of the size they will need. So even if they ordered it in July, once they knew the financing was in place, the earliest they could get delivery would be early to mid-December. Then it has to trucked up from US (probably Texas or Wisconsin), allow for the Christmas break, then on site in early January. by the time they get it hooked up and tested it will be mid-January. The steam cycle can take 60 to 90 days to "get it right" after first steaming begins, which is why i think they are saying "first half" of 2014 instead of "first quarter," in case they are not producing steady flow by March 31.
I like that the company is being careful.
Click the link I attached to the email you just replied to, it is the press release.
Here is another place where you might want to check out the news, since you seem to doubt my word, and the accuracy of the press release I enclosed.
http://www.deepwelloil.com/news_rel/DWOG%20PR%202013-11-13%20%20SAGD%20Wells%20Completed.pdf
Drilling is done. Construction begins on production facilities. Off we go.
http://www.oilvoice.com/n/Deep_Well_SAGD_well_pair_successfully_completed/0194319e22d2.aspx
Time to keep the faith and rely on facts. There's a nasty whisper campaign against DWOG. I've heard it twice now, that the drilling was a failure.
I don't believe this BS and I believe it may be spread by folks who are just trying to scare people to drive down the stock price, so they can pick it up cheap and make a killing.
It might be working, going by today's trades.
Wshaw's mail is the kind of fact and reassurance the market needs. Hope we get official word real soon on the drilling.
Once again, please don't sell because someone scared you into thinking the drilling didn't get done.
We are on the way to 60 cent plus territory by Christmas, IMHO.
Canadian heavy oil demonstration project is well under way. POE is parent company (about 72 per cent stake) in Andora, which is drilling a horizontal well pair for its SAGD production, on lands shared with JV partners Deep Well Oil& Gas Inc. (DWOG) and France's second-largest oil company, Maurel et Prom (with subsidiaries). Much more info on the DWOG message board re progress of the project.
L2 looks like next stop is 60+, by the end of next week IMHO