Well, a lot of what you say, I agree with. First, the filing I saw was for a TRO, which has a rather low standard of proof, I gather, not being an attorney. However, the copies of court records and corresponding docket numbers are very much real. It is my judgement that there are an inordinate number of lawsuits for such a tiny company and these are not slip-and-fall suits, these are course-of-business lawsuits. Operator in Oklahoma, royalty interest seller in Mississippi. Many defamation suits, all without merit in my layman's opinion. (And also in that of some judges as well.)
Interestingly enough, the first well I could find associated with Breitling was a reentry of a well to complete in the Yegua formation. It was bound to be a good prospect based on the production. The Teaf well is a marginal producer, but will probably payout. Why make the 160 BOPD statement when he knew or should have known it will never happen? I could go on and on about red flags, but none of them prove anything.
Crude Energy flat made the statement that they spent two million dollars a year on research in the context of technical development. I have a problem believing that, but it certainly could have happened. It's only a guess, but I would think the research was broadly defined and included land work.
You probably know I said that I think Breitling's business is getting direct investors and making money from fees and overrides. They pretty much said so now that it is to their advantage. The question is not whether they can make money; they can as long as people continue to invest. But they won't get them if there is a credibility problem. With a little bit of someone else's money I can buy into dozens of ND horizontal wells and start calling myself a "Frackmaster." Doesn't mean the project will make money, but I would. At some point people are going to want to see a track record.
If someone wants to invest without any evidence of sustainable profitability, it wouldn't be the first time. Also, technical trading is not something I want to do and have no knowledge of it.
