Breitling Energy Corp fka BECC

[FM II]

I have seen people post worthless TRRC production numbers and pretend to be able to form an opinion on the proven reserves and/or depletion rates based on those numbers.


OK, let’s step into reaper’s world for a moment.

Let’s look at those worthless production numbers:

The Buresh 17-1HM went off line in December 2014 after making 16,087 bbls. I guess they are waiting on a pipeline or something and the lease is being held by something unknown.

They mentioned the Breitling-Woodring No. 1. It has made 83 MMCF in three years and is currently (May 2015) making 67 MCFPD and declining. Maybe they are choking it back, but they must go out and reduce the size of the choke each month so that it declines at 21%. In three years, when the price of gas is $6.00 an MMBTU, they can open it up to 100 MCF a day and the well will payout in its 13th year.

The much praised Teaff is making 8 BOPD and declining. This is a well capable, according to CF, of making 160 BOPD. It makes a running ton of water, so it is understandable that they would slow the pump in these low prices. It is perfectly understandable that they would slow the pump incrementally each month so the well looks like it is declining. Breitling, being a modest company would want its wells to look worse than they are. It perfectly OK to lose money on a well by producing below the economic limit until prices go up in the next few years. A gold mine waiting for its moment.

The Hoppe 63 1 is also on a clocked pump. As soon as prices improve in 5 or 10 years Breitling can open it up. I know they said they could make money in this environment, but no need to make money now when you can make more in a few years. In the mean time they can drill more multi-million dollar wells and produce them at a loss to hold onto acreage. Because the Permian is so good.
http://oilprice.com/Energy/Crude-Oil/Just-About-Every-Part-of-the-Permian-Basin-is-Unprofitable-at-30-Per-Barrel.html

The Parramore, another well in the Permian, is great. It is understandable that they would slow the pump to 25 BOPD in November 2014. Why would one want to sell oil at $76 a bbl? It is coincidence that Breitling kept consistently slowing the pump so the well looks like it is declining at a steady rate. There is no doubt this well is capable of making a 100 BOPD, but with these low prices it only makes sense to produce it at 8 BOPD, because just because Breitling can make money in this environment does mean they should.

The Wilson 1H, a great horizontal well, only looks like it was declining at 50% a year in 2012, 2013, and 2014. Why sell oil at $100 a bbl? They will be opening the well up as soon as oil hits $120 so the well can pay out.

The Crown Petroleum Thomas Meek 76-3H only looks like it will barely payout with a 3 BCF EUR, again Crown Petroleum is bound to be on board with choking the well back, much better to wait for higher prices than a measly $4 per MCF and $100 for condensate.

The Black Stone No. 1 is a good well that will pay out in a few additional years after they speed up the pump in a few years when the price goes up.

Of course production and well performance are worthless, otherwise it would look like every well Breitling has mentioned is either non-commercial or marginal, heavy on the non-commercial.

In other matters:

I also see the inability for some to distinguish the difference between a "developmental stage company" that has diluted its public float to a maximum O/S of say 500M for this example, vs. a company that has historically been self sufficient, that only has a 40M float, even though the market capitalization would be the same.

As far as I am concerned, I do see the difference, but what they have in common is that each share represents one 500 millionth of the company. Maybe Breitling’s assets will grow from a few million to $500 million. How would we know without financials? I think it is a sure bet it will only happen if they stop drilling wells.

I know its a false statement and I am not in the least bit worried about the anti-fracking bloggers and other internet Buffoons who make empty threats against me just for supporting my investment in Breitling.

I have never threatened anyone, so this doesn’t concern me.

I am also not worried about the comments made on the stock blogs out there by people who don't know how to trade stocks or have failed in their attempts.

This doesn’t describe me, so it doesn’t concern me.

LOL, Best of luck and may each Breitling investor find a way to make money.