Bakken Energy Corp. (BKEN)

[fawd]

What do you mean it doesn't matter? That's been your entire point... So to emphasize the TRUTH:

The appraisal DEDUCTED the costs for capital expenditures (future upgrades/refurbishments) from the valuation. The appraisal is ALSO based on the refinery IN ITS CURRENT CONDITION.


SECONDLY. The appraisal was not based on future refurbishment. IT IS CLEARLY STATED NUMEROUS TIMES in the appraisal document (which you provided) that the values presented are based on CURRENT assets in their CURRENT condition. IN FACT there is a section that states the refinery needs ONLY $600,000 in upgrades to be fully functional and boost yields. AND I QUOTE FROM THE DOCUMENT:

The purpose of the assignment is to provide market value in the real and personal property assets.

Capacity of the property as originally constructed and as modified in subsequent years (talking about the already finished renovation here)

The document is littered with this.




And finally in regards to the permit and equipment... The appraisal you kindly provided :) clearly states MANY TIMES that the refinery is capable of refining oil to gasoline (and suggests costs to improve further). It also states that the equipment is in working condition! So the equipment DOES FUNCTION. AND the Realtor disclosure you provided states clearly that the refinery had to RENDER THE EQUIPMENT INOPERATIVE to gain tax benefits for the new functionality. Meaning... it was working, then they turned it off.



As far as why 'big players' haven't tried to acquire the refinery... well for one: they all already have refineries in the Salt Lake area. Secondly, in the grand scheme of things 70 million for a refinery is chump change to these guys (we're talking BILLION dollar refineries here). For you to reference, here are the big ones in the Utah area:

North Salt Lake Refinery (Big West Oil), North Salt Lake 35,000 bbl/d (5,600 m3/d)
Salt Lake City Refinery (Chevron), Salt Lake City 45,000 bbl/d (7,200 m3/d)
Salt Lake City Refinery (Tesoro), Salt Lake City 58,000 bbl/d (9,200 m3/d)
Woods Cross Refinery (HollyFrontier Corp Corporation), Woods Cross 31,000 bbl/d (4,900 m3/d) Nelson Complexity Index 12.5[26]
Woods Cross Refinery (Silver Eagle Refining), Woods Cross 10,200 bbl/d (1,620 m3/d)