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Not suggesting any company is involved, and fully agree with you it would be completely reckless for any invested firm to do so. More like an individual who might have put together a position of 50,000 or 100,000 shares when the stock was trading in the three cent to five cent range, trying to move it up to maximize profit.
Could be someone with a very large shareholding trying to raise the value of their investment by buying a few hundred shares at well above market, so they can take the profit by selling the cheaper shares they already own at the higher price.
From today's opening, looks like there's a market maker trying to raise the share price above what the investor paid (48.8 cents).
Looks like an actual trade.
With drilling well under way, Q1 2014 production seems guaranteed. they only have to wait for freeze-up now to move the steaming plant on site, as I believe some of the roads there are better able to handle heavy loads after freeze-up. I expect the plant will be on site and hooked up by Christmas, tested early in the New Year, and the first steam cycle in the ground before the end of January.
Once that happens, 60 cents will be a price in the rear view mirror, IMHO.
The strategy is working beautifully! Where is the SEC? Missing in Action again?
http://promotionstocksecrets.com/octagon-88-resources-inc-octx-pumpdump-report/
Here's a great page, from the Government of Alberta, showing why this is a winning play for long-term, patient investors. These stats are just amazing.
http://www.energy.alberta.ca/OilSands/791.asp
Well it's good to know 30 cents is the "foundation". I have a feeling anyone who was willing to sell at that price has already taken their profit. We know that the investor sees 48.8 cents is a good buy on this property BEFORE development. For me the real "something" will be a year from now, when Maurel et Prom has the option to exercise a $110 million investment for half the remaining working interest.
That will be the "take off" point.
Right you are Wshaw. Garry is the bent one; brother Bill is the doofus fall guy who is set up to face all the charges once the authorities finally wake up, and now Garry's boy Feliciano has been pulled into the scheme. As for Guido Hilekes et al, they're part of the supporting cast of villains in this piece of nastiness. Bad, Bad, Bad. Amazing people aren't running away. If people are still buying into this crap after all the warnings, they deserve to lose their money.
Agree that cross-listing makes sense. Don't know how much volume they do on the European exchange (VVE on Frankfurt) but it would be great if they listed in Canada. Right now, no Canadian broker will do a trade on DWOG.
Pays to read the fine print!
Instead of lapping up the daily pumps, read their legal documents.
This is from page 18 of their latest annual report, filed with the U.S. Securities and Exchange Commission:
"We have not and do not intend to pay any cash dividends on our common shares and, consequently, our stockholders will not be able to receive a return on their shares unless they sell them."
Or how about this from Page 13?
"Our financial condition raises substantial doubt about our ability to continue as a going concern."
And from Page 14:
"Our ability to produce sufficient quantities of oil and gas from our properties may be adversely affected by factors outside of our control."
Or this admission from Page 16:
"Our President devotes less than full time to our business, which may negatively impact our operations."
How normal is that for a stock trading at $6.40 a share with a market cap approaching $200 million?
And look at this, from Page F9 of the Financial statements:
"From inception through June 30, 2013, we have incurred operating losses of approximately $714,611, of which approximately $115,611 represents actual cash losses. At June 30, 2013, our cash on hand was $108,593.
These factors raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
Run Away, Run Away, Run Away!
Wayne
A great big thank you for keeping us well informed. As noted in an earlier post, I am more inclined to think that HCSS is going to be "staged" after the SAGD pilot, mainly due to the fact that the same equipment and crew can be used for both. So it makes much more business sense to get the first one off and running, then move the crew and the equipment to the next site to start work there, instead of paying for two sets of crews and equipment.
If they are drilling now, by the time they get the horizontal leg done and cased, and the steam plant built on site (takes about two months to build and install the steamer, even if it is a portable one, the delivery lead time is a few months) we will be coming up close to Christmas.
I don't see any economics in paying guys huge overtime bills over the holidays. So I am anticipating they will start steaming right after the holidays, which still puts them very nicely on track for Q1 2014 production! As soon as oil flows from here, I am looking for an announcement that they are moving on to HCSS.
Anyway, it's all good news, and I am looking for another nice dividend in 2014.
It is reassuring to know that as of today, the company is officially on its way to production:
http://finance.yahoo.com/news/deep-wells-joint-venture-partner-120000965.html
It just reinforces the genius deal Horst put together in this investment. DWOG will get 25 per cent of the production from the pilot project, without having to spend a single penny.
Guess it goes to show the kind of talent it took for Horst to be Minister of International Trade at a time when Alberta was opening up its oil and gas markets!
And it may very well stay that way for a while.
This is a company that only reports news, when there is news of substance to report.
Any one who is interested to now all the small details, that the company does not feel are significant enough to justify a news release, can call any of the company officers at 780 409 8144.
Not worried at all: we will be selling at $1 plus a year from now.
Dear Golfboy
I doubt there will be any announcement other than the start of drilling, which we know is imminent.
Guys working up there tell me there is some activity in that area (mostly PennWest conventional, but the same equipment could be the DWOG stuff too), they should be starting work very soon.
WShaw, I don't see the HCSS project getting started until oil flows from this one. I can see them getting everything they need to do to get ready to begin the HCSS, but it doesn't make much business sense to work at the same time on two demonstration projects in two areas. I have a feeling they will want to evaluate the results of this one, and do them one after the other. Besides, with the current market rates for work crews and drilling rigs, it makes more sense to start one, then move the same crew and equipment for the next.
Here's the news we've been waiting for.
http://www.ogj.com/articles/2013/10/sawn-lake-sagd-project-steam-injection-nears.html
Wonder why the company isn't announcing anything?
Maybe they are waiting until the drill bit has actually broken ground.
I know these guys are conservative (nice change from the OCTX pumpers, eh?). But this is being a bit too conservative, IMHO.
NOTHING is random with these boys. They are very sophisticated at priming the pump, and doing minuscule volumes to manipulate opening and closing prices.
I noticed in the last outrageous pump, the fine print said iHub was paid to distribute the message.
Guess when those folks came to the iHub board they saw the warnings and declined to be fleeced.
Alberta oil is sold on the open market, as a commodity. No specific buyers is needed, unless the buyer is an investor with an independent off-take plan. Most Alberta oil is refined in Illinois and Wisconsin. Another distribution point is Cushing, Oklahoma. the american leg of the expanded Keystone pipeline, from Cushing to the Gulf Coast, came into operation a few months ago, so Alberta oil can be refined on the Gulf Coast and Texas as well. Open market sales can be collar hedged to give a price range, or trade at the spot market price. Open market carries price risks, but is the purest free enterprise way to sell, since each day 10 times as much oil is traded as produced. Chinese could be buying on open market, once oil leaves Alberta we have no idea about the ultimate buyer.
Because it's all a scam. The company OCTX has $7,000 in its account, warns in its SEC filings that it may not be able to access a draw down credit facility of a couple of million bucks, and it takes a minimum of $2.5 million to complete one horizontal thermal well.
Cold flow may work, but at max ten per cent recovery on a million dollar production well where are the economics that begin to make sense? How long will it take to recover a million dollars capex if you are cold flowing heavy oil at 10 barrels a day? The operator is the "private" CEC North Star and OCTX DOES NOT have operatorship of the lands it so loudly trumpets. Those are in the hands of CEC North Star, another Garry Tighe venture, which Garry will fold in a flash once he has determined that he has milked this one for all it's worth. As usual, it will be shocked investors who fail to understand the real meaning of words like "could" and fail to understand that the term "up to" includes the number zero.
By the way, the shares of CEC North Star that OCTX owns, are based on the same land where TAMM ran up a $82 million loss without being able to produce a single barrel of oil.
If you want a genuine buy, stick with DWOG. they got out of the Tighe clutches and are now a viable company with a very promising future.
Mine came as a cheque with a letter, since this is a Canadian account. The letter from Horst says the board of directors "is pleased to send you this 'return of capital distribution' of 0.07USD per share."
The cheque for $2,450 is in US funds, which is going to be used to acquire whatever i can get below 48.8 cents.
Dear Buccaneer
In my private mail you were kind enough to give me an insight into your character and breeding with your colourful use of Anglo-Saxon invective in two separate missives.
Difficult, isn't it, when evidence and fact trump OCTX shilling, and the hysteria bred by you and your cohorts preys on the clotted ignorance of the gullible.
My congratulations, Sir, on your commitment to this path.
I especially like the fact where your pump says that spudding could begin on 400 horizontal wells in 2014, in phase one of the development plan.
It takes a minimum three years to get environmental and regulatory approval for a project of this scale.
More importantly, this company with $7,000 in the bank needs to come up with $1 billion (0ne billion dollars) to complete 400 horizontal wells, since these cost $2.5 million PER WELL.
There is no regulatory approval, no facilities engineering, no facilities built yet, and somehow they are going to have 400 wells pumping 30,000 barrels a day?
All with $7,000 cash?
Pump and greed has driven this worthless company to a $200 million plus market cap, and this pump will no doubt cause many people to lose their life savings.
Criminals, that's what you are.
You are well named, Buccaneer.
Behind this loud and misleading pump is the fact that Octagon has $7,000 cash.
As to the $38 billion in assets you talked about, to get them it paid $32 (yes, thirty two dollars) and issued about five million shares in escrow[ i]to the company (Tamm) from which Octagon and another intermediary (CEC North Star) acquired the property.
Why did they get the property for nothing? because TAMM lost $81 million dollars of investor money without being able to get out a single drop of oil.
By the way, TAMM, CEC North Star, Zentrum Energie Trust AG and Octagon 88 resources ALL HAVE THE SAME OWNERSHIP OF INSIDERS WHO STARTED AND FLOATED EACH COMPANY.
That's why Wall Street hasn't "discovered" this company, Buccaneer. It is worthless.
And if the U.S. Securities and Exchange Commission had any gumption, the promoters would be behind bars for spreading this farrago of utter rubbish through company after company after company, bilking innocents along the way.
You ought to be ashamed of yourself, but then, sociopaths never are.
And it will be quiet until next spring, because there's really nothing to do but wait for the oil. Some guys here in Calgary are trying to tie DWOG to the band of scam artists at OCTX, TAMO, COUGF, KDKN etc. Must be before my time, but does anyone know if it's true that Garry Tighe actually started up Deep Well and was running a pumping scam in the early years? My research shows him and his friends tried to do an end run on DWOG and got slapped down for it real hard while they were at TAMO, but did they really own and control DWOG at first? That's what the guys here claim, expressing doubt that any company associated with the Tighes would ever bring a drop of oil out of the ground.
Anyway, when DWOG starts producing, that will put the doubts to rest. Wish they'd announce a start date for drilling, that would help everyone believe this is real!
To spare you grief and losses, this land came from TAMO to CEC North Star, then to OCTX. This is from TAMO's latest 10Q statement filed with the SEC.
Material Contracts
On May 31, 2012, the Company reached a binding agreement with CEC North Star Energy Ltd (ÇEC North Star”) of Calgary Alberta to transfer the oilsands leases it holds in the Manning Area in escrow pending a series of events being completed. CEC North Star will issue shares in escrow North Star common voting shares at the agreed value per shares issued from Treasury of Thirty Two Dollars ($32.00) Cdn. for a total of 5,062,500 shares. Due to family relationships between CEC North Star Energy and the Company, Mr. Tighe abstained from voting on the transaction. Due to a common board position on both companies, Mr. Hilekes abstained from voting on the transaction. North Star will be responsible for rental costs of the Manning lands going forward. Tamm acknowledges and consents to CEC transferring the balance of the farm in agreement that would apply to the P&NG leases, to North Star. The GORR in place on the Tamm leases will remain the obligation of Tamm under this arrangement The transaction has two key requirements to close – the put/call – 1. TAMM is to re-domicile to Alberta based on a shareholder vote at the next AGM and required documentation, regulatory requirements being completed. 2. Post the re-domicile, approval of the majority of the TAMM shareholders of the transaction at the same AGM would be required. Upon signing this agreement, Mr. Hilekes is appointed to the Board of Directors of CEC North Star and Mr. Tighe is appointed as COO of CEC North Star.
And why did TAMO do this, to come to a point where it sold five million shares for thirty two dollars to CEC North Star? Another extract from their 10Q:
NOTE 2 – GOING CONCERN MATTERS
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the three months and inception to date periods ended June 30, 2013, the Company has incurred losses of $15,126 and $81,571,623, respectively. In addition, as of June 30, 2013, the Company had a working capital deficit of $391,112, and no revenue generating operations. These factors, among others, indicate that the Company may be unable to continue as a going concern.
So TAMO loses more than $81 million trying to develop this land, transfers the same land to CEC North Star with a few million shares sold for nothing, then CEC gets Octagon 88 to vend in, and Octagon 88 becomes the new pump vehicle.
The SEC filings show that this predecessor company incurred losses[ of more than $81 million dollars without being able to extract a single drop of oil. And now it is back under a new corporate name. BEWARE./b]
And just how will it do so with just seven thousand dollars in cash?
Read their SEC financial statements.
It will take at least a million dollars to create the engineering and environmental studies needed to apply for government permission to do anything, which in itself will take at least a year and ahalf once everything is in order.
The draw down credit facility they haven't touched, "might not be available," according to OCTX's filings with the SEC.
More importantly, read the ones for TAMO, the predecessor company to CEC North Star and Octagon, launched by the same team.
Here are some questions you should ask, as this same patch of land has now been recycled to four previous pumped and dumped companies from the same promoters.
Where are the environmental studies?
Where is the application for regulatory approval?
What work has actually been done on economic modeling?
All of this, to have any credibility, requires well-known thrid parties whose signed and certified assessments should be attached, and explained in plain English.
This same team has pulled off five elegant scams in a row.
Do look at the history of CEC North Star predecessor companies TAMO, KDKN and COUG: all use the same pump technique on high-risk, unproven land.
in fact, one of the "independent engineering studies" concluded there is no known commercially viable means of extracting the oil from one of its main patches of territory, I believe that was either Kodiak or Cougar.
Octagon 88 is run by the Tighe brothers and their associates, including the paid shill Ernst Schlotter, who readily admits in his disclosures that he does no due diligence or verification of any of the claims he so loudly trumpets as "independent" research.
Please save your money.
And please don't say you weren't warned, when within two years the big dump is on (the Tighes launch these schemes by issuing millions of shares to themselves, listing the company, and selling the shares through various misleading pumps designed to beguile and bamboozle people who don't read between the lines).
It sickens me to see good, honest people taken repeatedly for rides by this band of miscreants.
So keep waiting for these "great" releases, they will continue until they have wrung out every penny they can.
Looks like we're in a holding pattern. I've bought everything I can afford. Wonder if we'll see any movement in the share price until first oil flows.
If you want to know what happened to your investment, check out OCTX, where the Tighe boys, Hilekes, Muzzin et al are up to their old tricks, using the same land, the same pumpy press releases from Schlotter (I would call him the Whore of Zurich except this would insult a lot of honorable prostitutes, and any way, his company seems to be siphoned through Panama), and the same progression of "news" which upon closer examination amounts to the square root of sweet fxxx all.
Amazing these guys pumped it to nearly $7 and are still drawing in the suckers like a deep sea trawler going after sardines.
Please remember also that once you achieve 1000 barrels a day for six months, Royal Bank of Canada has a policy of lending against production, thus financing expansion without needing to sink more capex.
And the misleading statements continue, for those who don't read carefully.
It says the application PROCESS will be confirmed by the end of September.
Typically, it takes the Alberta energy Regulator at least 18 months to approve a well license, in the BEST of circumstances.
They will have many questions about cap rock pressure, water quality, sand control, water sourcing, detailed facilities engineering, etc etc. all of which together can approach $1 million in costs JUST TO ANSWER the questions required for regulatory approval.
the company has $7,300 cash!
They say work will begin depending on drilling rig availability. The "availability" is based on ability to pay a deposit upfront. It costs about $2.5 million to complete a production well for this type of formation.
They can turn $300 into $62 million of paper assets, but they cannot magically turn $7,300 into $2.5 million, plus the extra million dollars required to meet the threshold of studies the regulator will need.
Anyone who nvests is being taken for a long, dark, dirty ride before you lose everything.
When you lose EVERYTHING you have invested, please do not say you were not warned.
Flee now, you will have better odds at your nearest casino.
Very impressive, that you know the Chairman of the company personally and that he replies to your email!
And you're on a first-name basis with him. Wow!
So does "wshaw" stand for Mr. Wayne Shaw?
Keep up the great work, Mr. Shaw.
People really shouldn't invest unless they can read and understand company filings with the U.S. Securities and Exchange Commission.
Here is an extract from the company's most recent:
Note 2 – Going concern:
As at March 31, 2013, we are a passive investor in an operating oil and gas company and we hold a Mineral Rights Agreement (see note 4) which gives us the rights to certain oil and gas exploration leases. We continue to seek other oil and gas acquisitions that we can operate. While we have acquired an interest in certain mineral properties (Note 4) we expect to incur exploration stage operating losses until revenue generating operations commence, and for a period of time thereafter. We rely on our officers and directors to perform essential functions without compensation until a business operation can be commenced. We have entered into an agreement for funding of up to $2,500,000 (CDN) by way of an equity placement and a credit facility but we have not yet drawn down the first funding of $500,000 (Note 5). There can be no assurance that funds will be available from the credit facility if and when needed.
From inception through March 31, 2013, we have incurred operating losses of approximately $180,280, of which approximately $123,994 represents actual cash losses. At March 31, 2013, our cash on hand was $7,233.
These factors raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
And this company is trading at $6 plus, despite all the warnings and all the exposure?
No sympathy for anyone who buys based on Schlotter, the Tighes, and the other crew of proven pumpers and dumpers.
Here is a link to the Government of Alberta's Winter 2013 oil sands update, which mentions the Deep Well project.
http://albertacanada.com/files/albertacanada/AOSID_QuarterlyUpdate_Winter2013.pdf
It is also a very useful primer for some of the posters on this board, who may not have a comprehensive understanding of oil sands and heavy oil, and post messages that are more relevant to light oil. Please have a look at the technical terms glossary.
Check out the first half 2013 results from Maurel et Prom, which has 20 per cent ownership of Deep Well:
http://www.maureletprom.fr/index.php?lang=en
This is a very interesting company with a finely-calibrated strategic mix of investments.
If you look at page 3 of the press release on their site announcing the first half results (download only), they have a graphic showing how the Alberta investment meshes in with their other new ventures, which include Myanmar, and newly opened unconventional oil in Quebec.
Understanding their approach and their philosophy of long-term, sustained profitability makes it clear why they paid more than 48 cents a share for their stake in Deep Well.
I have buy orders in right up to 48 cents at various levels, so I want to offer a special thanks to the people who are selling in the 30s. You have just made my retirement all the brighter.
Thanks, greatly appreciated!
Roylaty Mystery
There continues to be a mystery about a potential royalty liability that Deep Well might owe the nefarious band behind serial pump and dump operations such as Cougar, KDKN, Tamm Oil, CEC Northstar, and now Octagon 88.
Here is an extract from TAMO's SEC filing from june 2013:
(b) Sawn Lake Oil Sands Area - Alberta, Canada
We entered into a letter agreement with Vendors, 1004731 Alberta Ltd. and Muzz Investments Inc., dated November 7, 2007, whereby the Vendors agreed to sell, assign and transfer to us, their entire right, title and interest in a royalty agreement made between Mikwec Energy Canada Ltd. and Nearshore Petroleum Corporation dated December 12, 2003 in consideration of the issuance of 4,000,000 shares of our common stock.
During the year ended March 31, 2010, the Company management performed an evaluation of its royalty agreement for purposes of determining the implied fair value of the assets at March 31, 2010. The test indicated that the recorded remaining book value of its royalty agreement exceeded its fair value for the year ended March 31, 2010. As a result, upon completion of the assessment, management recorded a non-cash impairment charge of $2,929,868, net of tax, or $0.04 per share during the year ended March 31, 2010 to reduce the carrying value of the royalty agreement to $945,068. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management's estimates.
On or about June 30, 2012, the Company exchanged this agreement for the outstanding debt owed to Asperago Holdings SA and recorded a loss on settlement of debt of $612,514. The Company no longer has any interests in the Sawn Lake area.
However. it appears that TAMO did not have ANY right to transfer its interest in Sawn Lake (the presumed overriding royalty) to ANYONE other than Deep Well, because Deep Well had exercised its option to buy back the royalty, as part of the settlement of the lawsuit against TAMO and the band of schemers whose machinations are well known and well exposed. Here is the relevant extract from Deep Well's 10K for the year ended Sept. 30, 2009. The implication is that Deep Well had an option to purchase this royalty, and if it exercised the option, it would do so in the form of a promissory note to Tamm. We know the option must haver been exercised, because one of the conditions of the settlement was that Tamm could appoint a director to Deep Well's board, and Don Hryhor was subsequently appointed:
On April 4, 2008, our Company commenced a lawsuit in the United States District Court for the District of Nevada against Tamm Oil and Gas Corp. (hereinafter referred to as “Tamm”) after attempting to clarify Tamm’s position and rectify Tamm’s violations. Our Company alleges that: Tamm engaged in an unlawful tender offer for our Company’s shares, violated United States federal and Nevada state law in connection with the tender offer, made public statements about our Company and activities related to our Company and our operations that are false and misleading, and made statements of purported ownership of our shares of common stock that are false and misleading. On August 22, 2008, our Company filed a First Amended Complaint in the lawsuit adding the following additional parties as defendants: Garry Tighe, William Tighe, Craig Auringer, Sean Dickenson, John Muzzin, Guido Hilekes, Peter Schriber, Olaf Herr, Arthur Sulzer, LB (Swiss) Private Bank Ltd., and Rahn & Bodmer Banquiers. The First Amended Complaint also added a civil conspiracy claim. The First Amended Complaint seeks:
1.)
injunctive relief to include and not be limited to a permanent injunction:
a.)
that requires defendants issue appropriate disclosures and retract false and misleading statements concerning Deep Well in their prior representations through SEC filings, press releases, and all other appropriate means;
b.)
that prohibits defendants from exercising the voting rights or any other rights granted through ownership of Deep Well shares on any shares acquired pursuant to their unlawful tender offer(s) for Deep Well shares, attempting otherwise to influence or control Deep Well or its management;
c.)
that prohibits defendants from transferring their Deep Well shares and/or accepting transfer of any Deep Well shares acquired through their tender offer(s) for Deep Well shares;
d.)
that prohibits defendants from acquiring any additional Deep Well shares and/or taking any other actions in furtherance of their tender offer(s) for Deep Well shares;
e.)
that prohibits defendants from further conducting the tender offer alleged in the First Amended Complaint;
f.)
that prohibits defendants from issuing any false, misleading or derogatory statements about Deep Well, relating to their investments in Deep Well, relating to their acquisition of Deep Well shares or relating to their control of any Deep Well assets;
g.)
that requires that the transactions through which defendants acquired Deep Well shares pursuant to the tender offer(s) for Deep Well shares be completely rescinded and unwound and that any transfers made pursuant to those acquisitions be reversed;
h.)
that requires defendants to comply with legal requirements in the making of any future tender offer or otherwise acquiring Deep Well shares;
20
2.)
damages and/or treble damages in an amount to be established at trial;
3.)
attorneys’ fees and costs; and
4.)
all such other further relief as the Court deems just and equitable.
On September 14, 2009 and effective September 1, 2009, Deep Well and Tamm, Garry Tighe, William Tighe, Sean Dickenson, John Muzzin, Guido Hilekes, Peter Schriber, Olaf Herr, Arthur Sulzer, LB (Swiss) Private Bank, Ltd. and Rahn & Bodmer Co. (collectively, the “TAMM Parties”) entered into a full settlement and release with all of the defendants in Deep Well Oil & Gas, Inc. v. Tamm Oil & Gas Corp., et. al. (D. Nev., Case No. 3:08-cv-00173-ECR-RAM) in the United States District Court, District of Nevada. The settlement provides that we be granted an option (the “Option”) to purchase Tamm’s interest in the Royalty Agreement between Mikwec Energy Canada, Ltd. and Nearshore Petroleum Corporation. The Option price shall be determined by an independent appraisal of the fair market value of Tamm’s interest in the Royalty Agreement, and shall reflect a $400,000 reduction from the determined fair market value. Further, if we decide to exercise this Option we can pay for part of the Option by way of a promissory note, the terms of which will be determined. The settlement also provides that for the term of the promissory note Tamm may designate a director to our Company’s board of directors, and that Tamm’s designee shall thereafter be included in our Company’s slate of director nominees for any stockholder election of directors, until such time as our Company repays the debt it owes on the promissory note related to the Option. A Stipulated Judgment of Dismissal of the case was filed on September 15, 2009 and entered by the court on the same day. We have subsequently added Mr. Donald Hryhor to our Board of Directors.
So here is the question. How could TAMO have sold to Asperago holdings, the presumed royalty on which Deep Well already had exercised its option to purchase? What has become of this royalty? This two per cent potential royalty appears to have changed hands illegally. Is Asperago going to pop up out of the woodwork after Deep Well begins production and try to claim the royalty?
Mr. Wshaw, since you know Dr. Horst A. Schmid, maybe you could ask him what happened with this presumed royalty.
Checking the background of some of the people in this company, found some very interesting stuff. Looks like we are in good hands.
Here is more background on Dr. Horst Schmid:
http://www.baviere-quebec.org/archives/stories/00170/index.php.en
And here is more on Mr. Said Arrata:
http://www.calgaryopera.com/about-us/arrata-opera-centre
http://www.educationmatters.ca/wp-content/uploads/2013/03/Arrata-Family-Award-for-New-Canadians-20131.pdf
These gentlemen are great leaders beyond the boardroom in the larger community. It's good to have a company led by people who believe in giving back.
Just re-read the Pan orient update from last week. Looks like Deep Well got rid of the three per cent royalty claim on some of the demonstration project lands. This is great, means DWOG's revenue is unimpeded. It doesn't have to pay any of the capex or opex, and it looks as though Andora is ready to go "full steam ahead."
The demonstration project at 7- 30 -91-12W5M will start with a 2013 phase consisting of one SAGD well pair, a facility for steam generation, water handling and oil treating, and water source and disposal facilities with an estimated cost of $24.1 million. The wells will be drilled to a depth of approximately 650 meters and have a horizontal length of 750 meters. Work is proceeding on site preparation, purchase of components for the facility, pipeline installation and preparation for drilling. It is expected that the horizontal well pair will be drilling in the second half of September and steam operations commencing in early December 2013. Oil production is anticipated in the first quarter of 2014.
Our joint venture partners in the demonstration project have now provided notice of their election to participate in the demonstration project and have taken steps to secure funding for their share of the project. As part of the arrangement for the demonstration project, Andora is allowing our joint venture partners to repurchase the 3% gross overriding royalty on their 40% working interest in the 12 sections of the Central Block for $2.8 million, under certain terms and conditions.
The demonstration project will now proceed with Andora as operator with a 50% working interest and a 50% working interest held by non-operators. Andora's share of the 2013 phase of the demonstration project is expected to be $12.1 million. To June 30, 2013 Andora has invested approximately $5.5 million in the demonstration project, with $4.5 million in the period of January to June 2013.
Andora is well funded for the demonstration project as a result of the $25 million rights offering by Andora in August 2012, at which time Pan Orient Energy Corp. provided funding of $24.7 million and increased its ownership of Andora to 71.8%. At June 30, 2013 Andora had $20.3 million in cash. Additional investment in the demonstration project in 2014 is dependent upon the results of the first SAGD well pair drilled in 2013.
Andora is a 71.8% owned subsidiary of Pan Orient and the cash balances, capital expenditures and operations of Andora are reported as part of Pan Orient.
Maybe, but still not proven. Toe-to-Heel Air injection (THAI) only works in specific geological formations, of which Petrobank's is one. It is a promising technology, but not yet proven beyond a limited application.
Tehre are other methods of thermal stimulation being treid, including induction electrical coils, and I believe Siemens is looking using electricity as well.
DWOG "claims" nothing.
The 1.2 billion barrel figure is an evidence-based conclusion from reservoir studies and modeling by a number of highly reputed independent third parties, the latest being DeGolyer and MacNaughton (D&M).
Your entitled to your opinions, geopressure, but not to your own facts.
Heavy oil is by nature viscous, and since you appaer to be from a light oil producing area, perhaps you do not have a deeper appreciation or understanding of the highly effective recovery rates achievable with thermal extraction.
while only a fool with predict with any assurance how much oil can be recovered until production begins, it is instructive to recall what D&M considered recoverable, in a pre-production assessment, (which undoubtedly will be updated once production begins):
"D&M assigned Probable and Possible reserves (2P and 3P) on the half square mile of land designated
for a pilot project. D&M has estimated that in that portion alone there are Probable reserves of
7,806,000 barrels of heavy oil and Probable plus Possible reserves of 9,370,000 barrels attributable to
Deep Well's working interests before adjusting for any Provincial or potential royalties ("DWOG's
portion"). It is anticipated that Proven (1P) reserve category also can be assigned once production
commences on the pilot project.
The majority of the remainder of the reservoir was assigned Contingent resources (1C, 2C, and 3C),
by D&M, as well as some Prospective resources. D&M assigned Contingent and Prospective
resources in three scenarios: Low, Best and High. Low can be considered a "worst case" scenario,
Best can be considered "most likely case" scenario, and High can be considered the "optimistic case"
scenario.
D&M's estimates the Best or "most likely" Contingent resources for DWOG's portion is 198,121,000
barrels. D&M also assigned additional Prospective resources of 56,162,000 barrels for DWOG's
portion.
The independent third party reserves report by D&M, "Assessment and Evaluation of Reserves and
Resources as of December 31, 2011" of our Sawn Lake Project, incorporates the typical requirements
of Canada's "National Instrument 51-101," the "Petroleum Resource Management System (PRMS)"
standard applied in the United States and India, and the "Competent Person's Report" required by
securities regulators in the Hong Kong Stock Exchange.
To maintain the independence, integrity and probity of such assessments of oil reservoirs; Canadian
law prohibits evaluating firms from ever holding any interest, direct or indirect, in the reservoirs
and/or companies evaluated. "
And remember the value assigned:
"D&M forecasts that the Contingent resources in most of the other parts of the reservoir will yield an
undiscounted future net revenue of Cdn $8,627,000,000 (Eight billion, six hundred and twenty seven
million Canadian dollars). For planning purposes, Deep Well and its wholly-owned Canadian
subsidiaries will use the Best (or most likely) Contingent resource case scenario"
This is in addition to the $245 million net revenue to be generated by the HCSS pilot project.