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From annual report 2004
In March 2005 we entered into agreement to settle a class action lawsuit brought by former shareholder. To settle we will issue 1,150,000 shares and pay up to $55000 in legal fees.
The law suit alleged that former CEO Dan Williams and CFO Andrew Wilson made material misstatements about our financial results. That the company over stated revenue and income, prematurely recognized revenue from contacts with Edge and Energy 2000. That the company lacked adequate internal controls and was unable to give a true financial condition of the company.
We never got our shares and it was listed in other year end reports. I had asked about it here before and no one responded. Odd about a week ago I was thinking about this and then the stock came in the mail.
Anyone else finally get the lawsuit shares from 6 or 7 years ago?
I got mine in the mail by certified mail the other day it was an actual stock certificate for 15 shares of the new company.
Bloomberg article about PEDO
BEIJING--Pacific Energy Development Co. is among a wave of U.S. companies hoping to capitalize on China's ambitious shale-production targets by offering their expertise.
But to do so, Pacific Energy, a small company, will have to compete with the likes of industry giants such as Royal Dutch Shell Co. (RDSB). Pacific Energy Chief Executive Frank Ingriselli said there is still room for niche players in China's shale-gas development.
"We might be able to spend a little more time analyzing what might be the best properties, and we might earn a better return on our investment," said Mr. Ingriselli, who was head of Texaco's international operations in the early 1990s.
China plans to sharply increase its natural gas output in coming years by using hydraulic fracturing technology, or "fracking," to tap natural gas that is locked in shale formations. The same technology has spurred a natural gas boom in the U.S. over the past decade.
China recently set a target to produce 6.5 billion cubic meters a year of shale gas by 2015, up from virtually zero this year. It hopes to produce 60 billion-100 billion cubic meters a year by 2020. But to do so it will need foreign expertise and investment.
Mr. Ingriselli has experience in China. He negotiated the first successful production sharing contract, or PSC, between a foreign and Chinese energy company 30 years ago, he said. Today, that offshore oil block in the Pearl River Mouth Basin is still producing $1 billion a year in revenue for China National Offshore Oil Corp., he said.
This time around, Mr. Ingriselli and Pacific Energy will likely count on one of its Asian partners, MIE Holdings Corp (MIE), to gain easier access to the Chinese market.
MIE, which has three oil and gas PSCs with state-controlled PetroChina Co. ( PTR), may participate in China's second round of bidding for shale-gas blocks, Mr. Ingriselli said. Chinese state-owned companies were allocated shale-gas blocks in the first round in June 2011.
In the U.S., Pacific Energy and MIE, which owns 10% of Pacific Energy, are developing two shale assets in the formations known as Eagle Ford and Niobrara. The joint venture plans to drill 50 wells in the U.S. next year, Mr. Ingriselli said, and is in talks to buy into a third shale formation, known as the Mississippian, in Kansas.
Pacific Energy hopes to sign an agreement to develop a shale-gas project in China within a year and to begin drilling operations within two years, he said. The company could develop a shale asset by partnering with a winning bidder from China's second shale-gas auction or it could acquire a conventional oil and gas asset with some shale deposits, he said.
Although the company's shares are traded over the counter, Mr. Ingriselli said Pacific Energy is working with the New York Stock Exchange to uplist the company to NYSE by the end of the year.
20 days are running out.
We are to get a new stock symbol in 20 working days we have to be at 17 days so it should be the in next few days. It will be interesting to see more than 100 share trade. Will this page still be open and active after the name change? If not guys it has been a long and bumpy ride I wish all of you well in your investments and hope this PEDCO works out for us.
The $1,000,000 rig !
It is all washed up, topped off with gas and ready to roll to the new owners.
After all what has management had to do the last year but put another coat of wax on the old rig.
It would be funny if was not so sad. Hope these new guys can fix it or at least get a good scrap price.
I got my info packet in the mail yesterday 1 for 112 shares reverse split and a price around .75.
So these shares should trade at .75 / 112 = .067 a share.
I did not have time to read much will this week end.
Good news - Bad News
Good news ----
From Pacific Energy Development Web Site
The Eagle Ford shale formation is the leading resource play in the U.S. Pacific Energy Development's Eagle Ford asset covers an area of 1,651 acres in the Leighton Field in McMullen County, Texas. It is located at the Eagle Ford condensate window, where two wells have already been drilled and are currently producing.
The first Eagle Ford well, Tyler Ranch EFS #1H had an initial production (IP) rate of 1,202 bodp and 752 mcfpd.
The second Eagle Ford well, Tyler Ranch EFS #2H, is located immediately to the north of Tyler Ranch #1H. The well had an initial flow rate of 1,488 bopd and 700 mcfpd.
The third well, Peeler 1H, has started drilling in May 2012 and is scheduled to be fracced in early July prior to being production tested.
The bad news-----
PED only has 8% working interest.
Yes, I forgot about that, odd that could be the biggest "asset" they we have dollar amount wise.
With all of the losses over the years this could be worth north of 5 Million. Not sure on how far back you can go I thought the losses expired after about 7 years but I maybe wrong. Of course PEDCO would have to make a profit to use these.
Boy, looking at their web site they sure have a lot of chiefs for being a company that is only a year old.
Hopefully, they have lots of money backing them up. We should get more info on them in a buyout docuement before we vote.
I have wondered the same thing. Here is what they get...
1 - If is an easy way to become a public company. This probable saves them half a million to a million just buy a down and out company that is already public instead of going thru the process of going public the one down side is you get the negative past of this unsuccessful company but they will change the name of the company so for most this is not that big of a deal.
Value $750,000
2 - They get the North Sugar Valley Field in Texas which is worth about $750,000 depending on oil prices. As well as Guijarral Hills Field located in the San Joaquin basin of central California which the first well was a dry hole but maybe there is something there. I thought that the way that ended was kind of odd but maybe this agreement was in the early steps and something will happen there.
Value $750,000
3 - They get a AFJ rig that is gassed up and ready to roll. LOL No wait. LOL But seriously LOL. That would be funny if it did not hurt my wallet so much. They do get a AFJ rig that if they could get fixed would be worth a lot of money. I know these guy were pretty high up in the oil business at one of the worlds largest oil companies but not sure if they are very technical or not. Hopefully they are or they know the right people and can get this rig working.
Value - ????
So they get or save about $1,500,000 and a small chance that a AFJ rig is worth millions if they can fix it.
Is this worth 5% of PEDCO ???? Not sure what PEDCO current assets are worth but we are all but dead so lets try this.
I guess we picked the wrong hole.
Solimar Energy Limited (ASX:SGY.AX - News) (TSX VENTURE:SXS.V - News) is pleased to provide the following update regarding the ongoing production testing operations at its Paloma Deep discovery, located in the San Joaquin Basin, onshore California.
Two production tests have been conducted to date, initially targeting two of the eight zones previously identified (refer to diagram below), being the Fruitvale Shale and Lower Stevens Sandstone formations. Hydrocarbons have flowed to surface, unassisted at maximum rates of 1.9 MMCFD (million cubic feet per day) of gas, and 226 BOPD (barrels of oil per day) of light oil/condensate. The tests have been limited by downhole mechanical difficulties, due to debris obstructing and hindering the flow of hydrocarbons and preventing stabilised rates of production being achieved. At this stage these operational issues have also prevented the joint venture from determining which interval delivered the produced hydrocarbons.
Wonder how many lives Pacific Energy Development has?
Hopefully one and if is a great one.
The 9 lives of Verdisys/Blast
Just like a cat Verdisys/Blast has nine lives and used them all.
1 - 2003 Contracts for 100's of wells ordered new rigs were to have nine rigs at the end of 2003.
The rigs did not work and this lead to many law suits and cancelled contracts.
2 - 2004 Rig problems fixed signed a few small contracts
The rigs still did not work and this lead to canceled contracts.
3 - 2005 The new rig with AFJ was to fix all the problems.
The rig was field tested but always had problem.
4 - Blast buys regular oil rigs with contracts signed for years.
All rigs have signees back out of contracts law suits follow this leads to Blast bankruptcy.
5 - Sell oil rigs as part of bankruptcy, plan includes Digital Oil field and AFJ drilling.
Not sure what happened to Digital Oilfield but need money to fix AFJ rig.
6 - Win law suits against customers that backed out oil rig contacts win millions to be paid over several years. Use some lawsuit money to fix the AFJ rig. One law suit settled for shares in the company which goes belly up
7 - Kentucky AFJ contract signed after some field testing in Texas. This excited me because I live just a couple hours from where these wells are located I might see the rig in action.
The rigs breaks on one of the first wells and is driven back to Texas.
8 - 2011 - California oil well, partner with Australian company for well(s) in California.
One dry hole.
9 - 2012 - Merger with Pacific Energy Development
? ? ? ?
Wow, what a ride! I have throw good money after bad on each of these lives and now sitting on 60,000 shares and an average of .35 soon to be 600 shares at an average of $35.00.
Been investing for 30 years have had some companies go belly up but this has been the most frustrating investment by far.
From 8K
The Company estimates the Reverse Split will range between approximately 90-1 and 110-1, subject to the terms and conditions detailed herein and in the Merger Agreement.
After the Reverse Split, at the Effective Time of the Merger, MergerCo will merge into PEDCO, with the stockholders of PEDCO receiving one (1) share of the Company's post-Reverse Split Common Stock or amended and restated Series A Preferred Stock, as applicable, for each share of PEDCO Common Stock or PEDCO Series A Convertible Preferred Stock, as applicable, then held by the PEDCO shareholders and all outstanding warrants and options of PEDCO at the Effective Time being assumed by the Company. PEDCO shall have no more than 45 million shares issued and outstanding, or committed for future issuance, on a fully-diluted basis at the time of the Merger.
Under the Debt Conversion Agreements, the Company agreed to convert the following debt obligations into Common Stock at a conversion rate of $0.02 per share: Director Roger P. (Pat) Herbert, Director Donald Boyd, and former Director Michael L. Peterson, shall each convert $60,000, $60,000 and $48,000, respectively, of accrued and unpaid Board of Directors fees, into 3,000,000, 3,000,000 and 2,400,000 shares of Common Stock, respectively. Further, Director Roger P. (Pat) Herbert, Director Donald Boyd, and former Director Michael L. Peterson, shall each convert $2,050 ($6,150 total) of loans made to the Company, which are currently due and outstanding, into 102,500 shares (307,500 total) of Common Stock of the Company, respectively. John MacDonald (the Company's Chief Financial Officer), and Andrew Wilson (a non-executive officer of the Company) shall each convert $72,159, and $153,800, respectively, of outstanding accrued pay and vacation into 3,607,950 and 7,690,000 shares, respectively, of Common Stock of the Company
Wow, they do it to us one more time on the way out the door.
I guess I have mixed feelings about this merger I have owned Blast for many years, I still have shares I brought for $10.00 a share. On one side I guess it gives us a chance to continue as a company we were on our last legs having only a half percentage in a couple small wells, a dry hole and a nonworking drilling rig with weeds growing under it. Hopefully these guys see something in the rig or the dry hole that they can do something with. But only getting 5% of the new company even if they could fix the rig we would only be getting 1/20 of the reward.
With them getting 1 share for 1 share Pacific and us getting 1 share for 60 shares I have to wonder what the shares would trade at. Using the $1.20 from a previous post that would be 1.2 x 2,400,000 x 20 = 57.6 Million market cap, hard to believe! Based on theses number the price would have to go to $30 for me to break even that would be a market cap of 1.4 Billion I will not be holding my breath.
Have to wonder do they see anything in the company or is it just a way quick way to go public and if so what is that worth? Hard to believe that would be worth more then a half million if so that would make the company worth .5 x 20 or 10 million? Do we not have some losses that could be worth something as far as writeoffs on taxes?
I guess it is better then going under and I hope these guys can can do something BIG
For me this was always a swing for the fences investment and if we could get the rig working and get to $15 - $20 a share I could look at retiring in a few years but that was looking very slim before the merger and now a total lost is less likely but a $15-$20 non-split is 1,000,000 to 1.
From Pacific Energy Development web site.
www.PacificEnergyDevelopment.com
Mr Ingriselli has started another company.
In 2005, Mr. Ingriselli and a group of former Texaco and oil company executives founded Pacific Asia Petroleum. Pacific Asia Petroleum went public in 2007 and began trading on the NYSE Amex exchange under the ticker symbol "PAP" in 2009. In early 2010, Pacific Asia Petroleum expanded outside Asia by acquiring an interest in a producing asset in deepwater Nigeria. In connection with this acquisition, Pacific Asia Petroleum changed its name to CAMAC Energy Inc. and continues to trade on the NYSE Amex exchange under the ticker symbol “CAK”. Mr. Ingriselli retired from CAMAC Energy as its President and CEO in August 2010.
CAK is a company with 50 Million in Rev and a market cap of 150 Million.
In February 2011, Mr. Ingriselli founded Pacific Energy Development Corp. , a new energy company founded with the goal of building a successful business based on a forward vision, sound business plans, and high ethical standards. Our objective is to assemble a strategic portfolio of high growth, high return energy ventures in Pacific Rim countries, and to develop and commercialize these projects while maximizing returns. Our initial focus includes shale oil and gas exploration, development, and production in the United States and rare earth manufacturing in China.
How many people work here now?
What do they do all day?
Keep the Rig washed? LOL
That would be funny if it did not hurt so bad.
Strike 1!
Solimar, the operator of the Solimar 76-33 well in California, has issued a press release indicating that the initial zone tested did not result in flowing hydrocarbons and that they are moving on to the next of two remaining zones to be tested. Blast intends to issue a press release of their own once all the zones have been tested.
To view their release, please click on the link below.
http://www.asx.com.au/asxpdf/20110601/pdf/41yzmcrc74sq3x.pdf
Great
So we not only have the whole company on the pass line for one craps bet but we are now taking out markers. Odd he has loaned them money in the past at 10%-12%, now it is 25%. I wonder if he does not like the odds of us hitting oil or is it the deal that the New York crew got?
Hope we here something good in the few weeks.
Winner 6 pay the line collect the don'ts
Last info.
After further evaluation of the wireline logs the Company was able to report that there was potential for over 135 feet of hydrocarbon pay within six zones and a production casing was run to protect the zones for a flow test program.
The testing program is expected to commence in May and will take some time to complete as there are several zones which will need to be tested.
If commercial rates of flow are established there may be up to 10 follow up development well locations that would be drillable to fully develop the project. Produced oil from the production test can be sold to initiate a revenue stream from the project.
So I would guess about another 30 days.
Who the *^*^& is selling?
Why would you sell now with news of the oil well days or a few weeks away.
I guess you could have bought in the .08 to .10 range and selling now but if the new is good you would leave a lot of money on the table.
But then 100,000 x .17 is only $17,000.
Earning Report Tomorrow!
April 12!
The dice are rolling down the table.
One die bounces off the wall and shows a 3 and the other die is spinning .....
News should be any day, did we all crap out or did we hit oil?
April 12
Wow
Six dry holes and 2 plugged.
Hope that does not make the odds 1/3 of hitting oil.
Interesting how hit and miss it is.
Wild Calculations
400 Barrels/Day -X 50% = 200 Barrels/Day
200 X $40 = $8000/day $40 is net per barrel after production cost, taxes and depletion.
8000 X 360 = 2,880,000/Year
2,880,000 X .3 = 864,000/Year for Loan 30% of earnings.
2,880,000 X .7 = 2,016,000/year for Blast
Was there not something like 12 other wells - 2,016,000 X 13 = 26.2 Million!
26.2 X .50 for taxes G&A = 13,100,000 / 80,000,000 = .16 a share profit
.16 X 15PE = 2.46 a share, I would be happy with that!
But there are so many unknowns, oil prices, is there a overriding royality on the wells, how fast the well production rate decreases, does the 30% loan payments go for first well or all, and other oil accounting procedures. I have other small oil companies stocks and and it seems that back of the envelope calculations always come out to be higher the what is reported.
Let me see if I understand the loan agreement.
This is what I understand after reading.
1 Year loan at 10% in two parts
Part 1 - 2.1 Million
Part 2 - 411,000
If the test well is less then 350 Barrels/Day for first 30 days they get 12 Million shares of Blast
They bought 1 B share that puts limits on the company from going into bankruptcy.
They get 30% of earnings of the test well unless it is greater than 400 Barrels/Day for first 30 days they they are limited to the first 400,000 gross barrels.
Questions
Is 30% of earners mean our profit or gross revenue of the well?
Since we have 50% WI does that mean 15% of all well profits with no cost or chance of loss.
Is this 30% only on the test well or all other wells also?
This is great news!
This is wonderful news because someone else did the deal and not McAfee and Company.
So the deal must be good enough to talk someone else into putting up their money.
But maybe they are a bunch of fools or have money coming out of their rears.
Wonder what the terms are.
And up from the ground came a bubblin crude.
Blast that is, hitting oil, making me money.
Please hit oil
Please hit oil
Please hit oil
Catch the ride ! The roller coaster is on again it is slowly making its way up the track.
Click Click Click you can hear the safety latches so we do not roll back.
Where was that in the past? All aboard! Hands up!
Hopefully we never need it.
In the local news.
An old colgate plant in town was bought and is being redeveloped by a group with EB5 money.
They still have to raise the money!
In the past ( 4-5 years ) everytime they tried to raise McAffee and friends were the only ones to step up. So yes, Blast would not be around without them. It will be interesting to see if they can raise the 3 million or does McAffee have to step up once again. Being pitched the deal last time I did not think it was a great deal, maybe with the recent changes it would have been but only the future will tell.
"I am NOT impressed with management that thinks "managing" is placing a bet on the roulette wheel rather than a craps throw."
Well everyone knows that you play craps and not roulette! Craps has a 1.4% house advantage and roulette has a 5.2% house advantage and is kind of known as a women's game.
I have been here for almost 8 years and it has been a roller coaster ride. I still have shares I brought at 10 bucks a share and can not count the number of times when big thing were just around the corner. A small fleet of drilling rigs with a backlog of hundreds of wells, regular oil rigs with multiple year drilling contacts, a digital oil field, an "all new" AFJ rig that was successfully tested and had a 100 well deal only an hour and half from where I live. It has gone on and on.
This stock has been draining not only on my bank account but emotionally as well. This stock for me has always been a swing for the fences investment with over 100,000 shares I would like nothing more than for it to go to 5 or 10 bucks a share. But since things did not work out in Kentucky this company has been slowly bleeding to death only kept alive by the yearly care packages of the lawsuit. At this point they only have one care package left and part of that is already used so about all they can do is go "All in" or slowly bleed out. I say put it all on the pass line and slide me the dice I feel a hot hand coming. Lets win big.
I was talking about the presentation, it is a presentation to raise 3 million for this project.
From the presentation -
Blast is seeking an initial $3M investment in the form
of debt financing to “farmin” or invest in drilling one
well on the initial prospect in the Guijarral Hills in
Central California
Gross Proceeds $3,000,000
Cost to Drill Initial Well $1,540,000
Cost to Complete Well 600,000
Repayment of Sun Resources Note 270,000
Escrow of 1st Year Interest 240,000
Commission, Fees and Attorneys 350,000
Total Uses $3,000,000
With 3 million and 240,000 in interest the first year we know that they want to pay 8% which was the same as the last time they tried to raise money. And that they are looking for debt but I think they will have a hard time just borrowing money at 8% without some options or stock thrown in the deal.
What are the terms and how do I buy?
It is out but I guess noone cares.
No Digital OilField
I was cleaning over the weekend and found the Blast bankruptcy filing. In it the digital oilfield was the driver of the future of the company. Projections for 2009 were about 20 millon in revenue and most of that was the digitail oilfield. The problem with having a product that is mostly made from off the shelf items so that it is easly copied. Or you work with anther comapny and the take all of your good ideas. Been thru that more than I can count.
Digital Oilfield
What ever happened to this?
Digital Oilfield is all 1's and 0's, looks like it is all 0's here.
Wow such get news that...
Noone wanted to sell thier shares yesterday! Volume = 0
So this means what?
They can keep the current rig but can not use the technology to build other rigs? They can not use the technology unless they have a new agreement? They are out of the oil drilling rig business?
????
If this 25-30 million is raised will we not see a huge dilution?
What price do they get sold at, .10, .25 .50 1.00? We are looking at 50% to 90% dilution.