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57Tbird, I realy do not have time to correct your every post.
Barry McFarland did the effort for that spreadsheet. I have faith in his ability and in his accuracy of the document. Although I may not have the same opinions of people as he. That has nothing to do with the regard with which I hold his accounting abilities.
I will form my own opinions and in my own time about the people that I deal with.
As far as your ideas on working interest, you are either in error or believe everyone else is stupid enough to believe you. It does not matter what portion of a well you have a working interest in nor does it matter how much that well pumps.
BUT FOR THOSE YOU HAVE MADE CURIOUS..............
The working interest is that part of the ownership of the oil that participates in the cost of recovery. If a well produces $100 a month. And the override and royalty add up to 25%, then there is $75 left to pay the cost of pumping and maybe a profit. If the cost of pumping is $65 then there is $10 left over for profit. If BDGR has only 10% of the working interest, then they get $1 profit. From what I hear, we have about 65%.
So we would get $6.50. It does not matter though, what percentage you have, it only matters that the working interest is high enough to pay the cost of pumping with some left over.
Lou
Charttalk,
The spreadsheet in question was originally set up to be info for the long ago merger with texas holdings by the then CFO. It was originally emailed by accident to a shareholder who passed it on to me. In my stupidity I forwarded it to 57tbird as he said he could evaluate it and would keep it confidential. In my presant possition it would be improper for me to devulge it outside of the company. But I will say that it was given to the suiter in order to show off bdgr's assets. So it must have some tantilizing info. And it does show that the working intereest of the wells are mostly 75% or better. Not always our working interest, but the working inerest in total, as that is what leads to profitability.
Lou
Too all,
I'm not sure how many of you understand the reason for the most recent decline. I have some info that I cannot verify, but believe it is worthy of sharing. I must preface this by saying that it is not inside info and does not have any relation to my possition.
The most recient decline is from a rumore that Joe went to a pretrial hearing on the OMDA case Teus and Wedn. The rumor was that Joe went without an attorney. The rumor was that the hearing went baddly.
I spoke to Joe recently and he confirmed that two attorneys were presant, one for him and one for BDGR. Also that no real changes in the case came from the hearing.
My little knowledge of a pretrial hearing is that it is set up to see if it is possible to resolve the issue without a trial.
Very rarely does anything come out of it unless both sides are willing to settle.
As I said, I can only tell you that which i have heard. I do not have the time or ability to varify this. But it does appear that someone has a motive to bring this stock down for accumulation. And that is only my view.
Lou
57tbird,
You should talk the author of the document. Because he told me that Joe is not making money off of fourstar. I think he would know more about the details than you or I.
Lou
57Tbird,
I saw the same info you did. There is no way to tell from just that spread sheet as to what the payment was for. Is it warrented costs, or do you have some real info to dispute that?
Lou
Local,
We may be using different terms, but we are talking about the same thing. Royalty int. and sometimes Override, come right off the top. The remainder is the working interest. The working interest shares all the expences and the profits, if any.
Lou
Local,
BDGR may have less than 75% of the working interest in some leases, but all the leases have 75% or better working interest.
That is what counts. The working interest pays the bills. You can make money with only 5% of the working interest as long as the total working interest is high enough.
You should re think that one again.
Lou
"Human beings, you gotta love 'em."
That pretty much admits then that you are not a human being.
What color is the sky in your world?
Local,
Why would an operator that has been selling oil for over a year, have to call and ask for it to be picked up? I would think that it would be an ongoing contract.
"The pick up date is immaterial. Here's how it work.
Take an average purchaser like BioState. You want to sell your oil, you get it ready, call their gauger and he comes out and buys it on or before the 25th of the month. It might be a week or even two before its picked up. Then, you're paid for it on the 20th of the following month."
What if he doesn't get to it by the 25th? What if he picks it up on the 4th of the next month? Doesn't the payment go out now a month late?
"What I was talking about, having your R-4's yanked is not a lein. It's a State imposed action to compel compliance, typically with some enforcement issue."
Then you are saying that an R4 is an operator compliance issue?
I know that there are a lot of question marks, but I am still learning.
Lou
Local,
I will check into that, though once I find out, I will not be able to post it. So, if you want the answer to that question, you will have to call yourself or have someone call for you.
What I had assumed was, that the oil was picked up, just that it didn't get picked up in some tanks, before the cut off date to be credited to last month.
That is how I pictured it. It was never explained to me.
If there was some sort of lein on the oil, wouldn't BDGR have tobe notified prior to enforcement. It does not sound likely that a company would pump oil that they couldn't sell.
Lou
57, I'm not trying to find reasons for you or anyone else to buy this stock, that is not my mission. My only hope is to have some small effect on the company that will add up to a value for the shareholders, of which I am one, along with the many friends I have gained here.
"Now, I'm supposed to take Lanza's word for something? I don't think so. Now, I'm supposed to take your word for it because Lanza told you? I don't think so. Now, I'm supposed to put total faith in the accuracy of PRs being issued by Lanza? I don't think so."
Why bother. If you don't think this stock is a good investment for you, move on. I am sure there are plenty of other stocks out there that will suit you better.
57, Yes, but to ask questions about specific wells would have to be asked of the guys in the field not in the office.
Local also said that 75% was a good working interest. And that was my guess, without adding them all up (hundreds). From the same data that I KNOW you have. Because you sent me a summary of it.
I have not pegged you for a liar, so I assume you did not understand the info that I was refering to. If you go to the right on the spread sheet, you can find the working interest to BDGR for every lease. If you have time, add them all up and divide by the number of leases to get the ave. Please put new batteries in your calculator for this. It should keep you busy for a while.
Lou
57tbird, If yougo through the numbers you will see that the ave. working interest is about 75%. Some are as low as 55% and others in the high 80s. I think those numbers are in the range that Local says are typical and profitable.
Lou
57, You and I both know that you have all the information on all of the leases. So why ask the question, except to stir up trouble?
Lou
57Tbirt,
I have a question. When did you go to work for the bashers?
We ALL know the take is about 65% of oil pumped. If you need a signed affidavit call Joe. You know his number.
Lou
Local, I think everyone wants to read into that pr something different. I took it just as it was written.
"Currently, production per operating well is around 67% of a barrel."
I take that at face value. Each well on ave. is producing .67 bbls. 10 wells would produce 6.7 bbls.
"Also, management vowed to try to push average production from 66% to 75% per day, which would enable the Company to produce 9,000 barrels a month.
I take that to mean that if they can push production to .75 bbls/day/well, on ave. they will increase revenue by 9%.
From what I gather on the oil pick-up is that the oil gets credited up to a certain day of the month. After that it goes to next month. If that day is the 20th, and some tanks are not emptied until the 21st, then it does not get credited and that pushes recievables out another month. That can hurt operating cash greatly.
Again these are just my take, I have no first hand knowledge.
Lou
I do know that the last wells drilled were water disposal wells in order to open existing wells.
Lou
There are somewhere between 1000 and 1200 exist wells. With only slightly less than 400 open.
Lou
LGL8054,
The meeting was held by conference call.
It was only to get the new board members familiar with the each other and the company. I beleive all were attending except one.
And it lasted about 2 hours.
It is expected that we will have weekly meetings for the near future and I expect to go down there soon to meet with Joe and others.
I expect that you will hear news soon that all of the audit materiel is in the hands of the audtors.
Lou
Local,
I have never asked that question. But whenever I have called and been able to talk with Joe, he has always answered my questions.
His number is: 318.995.0404
Lou
Localoil,
Directors are not typically concerned with day to day business. But are usually there to guide the direction of a company. The board votes on issues concerning this guidence and it is carried out by the officers and managers.
I would not request that info unless there was specific reasons like, if we were deciding to shut down the most unproductive fields or were looking for the best fields to expand. Otherwise, to ask for infomation to be gathered on specific leases would be a waste of time and money.
The first board meeting was only to get aquainted with the members and the company.
To me, the issues that are important to this company at the moment are: Cash flow possition, financing, and buyout offers on or near the table.
Future meeting should concern: The best way to use cash flow and financing for sustained growth. That is if a buyout doesn't stunt my term as director.
Lou
I stand corrected, again. You are right FastB, it is Ireland.
But I thought it would have been more fun to have him look in France for a while too.
Lou
Check France.
Millionairedreamer,
It was more or less just a meeting to introduce everyone. Yes, there were some question from the new comers. And there were answers, some pos. and some neg. Am I being vauge enough?
Mostly it was an introduction into BDGR and what its aims and goals are. I will say that the goals are doable and appear to be in the stockholders interest. Two months from now, we will have a much better and brighter picture.
Lou
I was just trying to understand this message.
"I know more about the board meeting than you.Thank God your out there representing the stockholders!My aching balls!!!"
Ridgerunner,
Yes, I am still here. And, I attended the meeting. Did you?
Lou
57, How did you know there was a board meeting?
Local,
Does horizontal drilling do well in the area?
Lou
Local,
Are you saying 36 x gross earnings (ebitda)? Or 36 x gross production (thier take of course, about 65%)?
LOu
Localoil,
A typical valuation is 8-10 times next years ebitda + assets. When bought by an unrelated business. If bought by a company in the market, it is usually higher.
That is typical for the ave. company, not the ave. oil company.
An oil company would be different because of the saleable product. There is no advertizing, no brand loyalty or disloyalty. It's, bring it to market and get the spot price.
Last year ebitda should have been between $60,000 to $100,000, with assets of about 15 mil. By the end of this year (if things go as the company says), ebitda should be well over 1 million, with assets of 20 mil. With that fomula it would be worth about 30 million, plus the expantion possibilies of the leases (more wells). Say 40 mil as a pretty fare estimate. That would ad up to about .57/share. If things start looking brighter, like the opening of wells faster, better reserves found, it could be .70 to $1. But, if it can get to 20,000 bbls/month with an audit, it is worth $1.50-$2/share on the market. I myself would rather see that than a quick profit.
Please note that this post is my opinion only, I have not yet met with anyone at the company and have no inside knowledge.
Lou
Steve,
Actually I was doping senators and smuggling horses.
Lou
Steve,
Actually I was doping senators and smuggling horses.
Lou
Accurate, thank you for that most un flattering photo. Yes, I did a small roll in a movie for a freind. (no, it is a comedy, not a porno)
But, there you have it. I do exist.
Lou
I understand, thanks.
Localoil,
As I said, once I am privy to company info I will not be able to share it. I can only do my best to guide the company, based on the info I recieve.
Lou
Yes it is true that I won't be able to post very much to this board once I start recieving info on board or company issues, and that I regret. I don't see any corp. rule or law on the subject, but my instincts tell me that it would not be appropriate.
I will genuinly miss those I conversed with and even those I argued with.
I will not be gone, hopefully not forgotten, and will do my best for the company, which in actuallity is all of you. (excepting the shorts, of course)
Lou
Fishingfund,
Where have you been? The water must be warming up in your area and you have been out on the ocean. I'm hoping to have time to put my boat in by the end of this month. The cod and haddock are jumping in the boats out at stellwagon banks.
Lou
Someone has done thier homework. Yes that is the SEC term.
The term also applies to the issuance of stock or money in the purchace of another company. It relates to a deal between two companies for a period of DD and negotiations.
I am not saying that we are in such talks. I was just relating some info.
Lou
Mars,
Perfect!