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Waterfall you must not be a shareholder if you don't know the answer to your question about the R/S, and Charles Davis would only have to recuse himself during the vote pertaining to the purchase.
I presume Dog means they didn't get the deal signed in 2009 and again last month.
Dogface, recent events would seem to contradict you .
Everybody's waiting to see if the deal actually goes through and what the Ryder Scott survey says. MO
Rubberworm, I originally invested in ARET because they said they were changing their business strategy to become an energy company working in traditional, and alternative, energy. Yes I believe there are energy reserves on continental North America that can be safely and environmentally appropriately exploited. I am a farmer after all and do believe in keeping the world in a state that future generations can thrive in.
Klook I remembered you using the 10,000,000 number and figured that was where you got that from. Just wanted to confirm my thinking.
Klook don't forget the shares that will probably be issued as part of the "other considerations" in the DNR/Tindal purchase. Wonder how many shares they will issue for that?
Waterfall, read the March 25th news release. The record date for the meeting was March 28th. Record dates usually precede the date of the meeting, transaction, etc. they are set for by a couple of weeks. The news release would suggest to me that all of the actions laid out as necessary for the deal going through would have to happen before the deal goes through.
"On February 26, 2011 we renewed the deal announced on March 29, 2009 with adjustments for any changes in existing wells during that extended period. The Company still expects to purchase the properties and as part of this purchase has to implement a plan of capital structure and financing that has been developed with the help of outside consultants and the board of directors. This plan includes the following elements; 1) a restructure of the existing equity, 2) conversion of cash loans from certain board of director members to equity, 3) completion of needed bank financing, and 4) the moving of the company's trading to a different stock exchange.
We filed for a record date for a meeting of shareholders on March 18, 2011 as required with the record date of March 28, 2011. As a part of this record date filing we plan to vote on reversal of the company's common stock at a rate of 100 shares to 1 for shares held as of March 28, 2011, elect the board of directors for one year, confirm the audit firm for 2011, and other items that may be needed to be discussed.
We have funded our working capital needs and purchase of the pipeline with cash loans from several members of the board of directors. These board members have agreed to convert $500,000 of their loans to common stock, as soon as there is stock available, at rate of $0.08 per share based on the current capital structure or $8.00 per share based on a 100 to 1 reverse split of the common stock.
There are several open items related to the purchase and the financing. The purchase will be financed with bank debt and loans from private sources which have several contingencies including the completion of the reserve study being conducted by Ryder Scott Consultants LLC. We have not yet received the report and had expected it Wednesday, March 16, 2011. We have been working with Ryder Scott Consultants LLC and expect the report to be completed within the next week. The reserve study will then be made available to the financing sources and soon as we receive it. It is now our plan to complete the transaction in April 2011. A summary of the reserve study and the purchase and sales agreement will be included in a Form 8-K filing upon the close of the transaction.
We plan to make application to the American Stock Exchange as soon as our capital structure plan is complete. As part of that application we anticipate that we will have to make additional changes to our corporate structure and will announce any changes as they become known. We are also working on our final management structure and plan to put that in place next week.
As we previously announced we completed the remaining filings due for Arete Industries, Inc. and became current with the SEC. We still plan to file the fiscal 2010 Form 10-K on Tuesday March 29, 2011. We are now trading on the OTC QB markets under the symbol ARET-QB. "We have set hefty goals and we are moving as fast as we can to put all of the pieces in place so we can achieve these goals," stated Donald W. Prosser, Chairman of Arete Industries, Inc."
The
Poltava, yes, if you are asking about the 2010 10K in general it was filed yesterday. Those who said they would soon be delinquent again were wrong.
Shorefishing, if you buy before the split actually occurs you will receive 1 share for every 100 you bought. I don't understand record dates. If you hold a stock till after the record date then sell it before a dividend is paid the new owner of the shares receives the dividend. If you buy stocks after the record date before a split occurs you get the split.
You don't seem to understand the situation and must not have read any of the other filings. ARET is basically a shell that DNR and Tindal are backing into becoming fully reporting publicly traded corp. That may be a little heavy handed a description but ARET is buying two companies that are worth more than ARET for a song. The stock price reflects this and not the value of ARET as it stands today.
Barney, Herzog would have to have some unrestricted shares because he would not be allowed to sell that many shares this year otherwise.
The BOD may have a better idea of what the Ryder Scott survey will reveal than we do.
According to the last 10k he has 28,000,000 shares. After the r/s he will have 280,000 shares. He would not be allowed to trade 700,000 or 7,000 shares because that is 2 1/2% of his holding.
It would have to be adjusted for the split. He doesn't have that many shares.
Depends on what the survey says.
"but if this goes to .30 or 30.00 in a few days -all i can say is WOWEE !!!!! I don't think it will but hey we can hope"
Soon as the survey comes out. Oilbull hasn't disagreed with my previous post about this yet.
Panther it's 2 1/2% of his holding. The 30th is two days after the meeting. Maybe John knows that this will be $30 a share by then. I can't find a filing on Edgar.
Can't find a filing, but even if Herzog is selling 700,000 shares that is only 2 1/2 percent of his holding. The 30th is two days after the meeting. Maybe he knows this will be $30 share by then.
It's trading where it did last week before the r/s news. Seems like a moot point.
I'd say soon after the reserves survey is released, but what do I know. I bought my shares when Tom Raabe ran this compamy.
Up Friday on volume after the r/s news, down today, so far. Guess the folks who don't like the r/s news didn't hear about it til over the weekend.So far though it's really not that much volume, not a panic sell off.
Oil you are leaving out the low ball guesstimate of 9 figures for DNR/Tindal valuation that the Ryder Scott survey will reveal. That's what gives credence to your .30-.40/30-40 argument.
Waterfall, yes that seems to be the deal. The DNR/Tindal owners are going to get rich off of the ARET stock price appreciation and back into getting publicly listed for free to boot.
Thus your suggestion that the stock is worth .30-.40 or 30-40 post split. It will reeeeally be interesting to see the Ryder Scott survey!!!!!!!!!!!
Oil, do you have a ballpark guess, maybe a bare minimum, of what the valuation of DNR/Tindal would be?
That's a million a year from those 6 wells! The Ryder Scott survey is going to be very interesting!!!
I said I saw 10-12 million a year. I think Oilbull is suggesting it is more than that. But yes, as I said in another post the owners of DNR/Tindal are going to make a lot of money from the appreciation of the ARET stock price.
That brings the total to close to 1/2 million $ for the month. Do you suppose with the other basins they're producing a million dollars a month? I thought I saw someone post they were making 10-12 million $ a year.
4Zoe, the best I can offer is Oilbull's post 9784
"Aret going on a different exchange is all about the fundamentals of the company now,and it is all good;) 8 cents or 8$ all the same,roll back for institutions and funding purposes,,,writing on the wall...No brainer... when Aret is at 30 too 40$ will be the same as 30 to 40 cents correct?At some time shorts will have to do some thing to cover,when this happens fine,until then I am very happy with Arets progress and will purchasing more as well as other people I know,.At this time Aret is like a IPO,BOTTOM FLOOR opportunity.The way I see it...
Long and Strong:)
Oilbull"
Rockafella, been hanging on since '04 when they were announcing they were going into alternative energy. Skeptical after initial experiences but stayed in because of the pipeline purchase. My average is .0145 but have not added any in years because of skepticism which was not helped by deal not going through in '09. Hindsight being 20/20 wish I'd added some when they first started filing 10s last fall.
From two years ago.
"The wells being offered by DNR & Tindall total 243 wells, including 46 operating wells (PDP) and 197 PUDS (PUD), with a discounted reserve value of the proven & developed, and the proven & undeveloped of $38,000,000. The reserve value assumes a 15% discount and uses $42 per barrel oil and $5 per Mcf gas. The current operating wells at today's oil and gas prices will generate net working interest revenues of approximately $3,635,000 a year or monthly net working interest revenue of $303,000, all based on oil at $42 per barrel and gas at $5 per Mcf."
Oil is worth 2.5 time $42 but gas isn't worth 2.5 times $5.
Bigtoe, you've only been in this since '08? I know, as soon as I say I've been in it '04 someone will say they've been in it twice as long as me. I know Dog has.
Oilbull, I was attempting to answer Bigtoe's question about how much more than $500,000 might be owed to board members, which has not been paid in shares yet according to the news release. Also the reason for my saying I thought I remembered the pipeline was $2,000,000.
Bigtoe's post
"This is how I read it.They are doing an R/S of 1 share for every 100 shares. Then they are going to raise the A/S to give to the members of the board who agreed to convert 500k of their loan.the big question is how much does ARET owe them to begin with...
We have funded our working capital needs and purchase of the pipeline with cash loans from several members of the board of directors. These board members have agreed to convert $500,000 of their loans to common stock, as soon as there is stock available, at rate of $0.08 per share based on the current capital structure or $8.00 per share based on a 100 to 1 reverse split of the common stock."
Bigtoe, here is what I found in the last 10Q
"6. Notes payable and advances – related parties
The officers and directors of the Company have advanced funds to pay for the filing and other necessary costs of the Company. The following are the advances from the officers and directors:
As of December 31, 2009 and September 30, 2010, the Company owed the related parties are unsecured, due on demand, and working capital advances:
2009 2010
Advances – Donald Prosser $ 200,000 $ 200,000
Advances – Donald Prosser 24,290 24,290
Advances – Charles Gamber 4,966 4,966
Advances – William Stewart 20,219 20,219 Advances – William Stewart 75,000 75,000
Advances – Charles Davis 125,000 125,000
Advances – Charles Davis 40,000 40,000
Advances – John Herzog 2,650 2,650
Balances
$ 492,125 492,125
Approximately $460,000 of the advances bear interest at 9.6% per annum.
Approximately $32,125 of the advances bear interest at 8.0% per annum.
The Company has related party payables of accrued interest to the officers and directors above of $151,993 at September 30, 2010. In addition, the Company owes an entity owned by Charles Davis, DNR Oil & Gas, Inc. The balance owed to DNR Oil & Gas, Inc. as of September 30, 2010 for expenses of $103,498 included in accounts payable and production to the operator of $495,473 also included in accounts payable. In addition, Donald W. Prosser advanced $33,312 at no interest as of September 30, 2010.
Oil, yeah I don't know where or what I remember 2 mil. from. Its heck getting old sometimes.
Bigtoe, if they do the r/s like they did the last time they will enact it so as to not effect the A/S keeping the A/S at 500,000,000 and not need to do an increase in the A/S. I don't know what the total debt owed the the BOD members is, but I seem to remember that the pipeline cost $2,000,000 though I could be mistaken. That should be in the 10s.
In case some of you don't know what the word majority means it is one more than half. If the bylaws only require a majority of the shares be represented at the shareholders meeting and if the insiders hold a majority of the total shares then they don't need to ask us for anything. That is how it is with many of the penny stocks I'm in. If the bylaws of a corporation allow the board to make a decision on splits, forward or reverse, then they don't need a shareholders meeting to enact a split. That last is obviously not the case here. They still don't require our vote if they hold the majority of the shares.
All of the reverse splits I have been involved in, with possibly the exception of the previous ARETE split though I didn't own any ARET stock at that time, have not been beneficial to those stockholders so far. I have to say that all of the reverse splits I have been involved in were done when the company's stock was trading close to all time lows with no major increase in net worth looming. Here we have the DNR and Tindal acquisitions looming in which we will not only be acquiring their income but also their in ground reserves. This is going to be a huge increase in net worth compared to any of the other companies I have held that r/s'd. I believe if they continue to execute their plan we will be all right.
Big increase in volume about an hour before news released.
RedScottie, if you bought shares you are not a short. A short is someone who has sold the stock short. They are betting that the stock price will decline. Basically they borrow shares and sell them at the present price hoping they can buy them back at a lower price later to return them to the entity they borrowed them from. If they have to buy them at a higher price than they sold them at they lose money.