Breitling Energy Corp fka BECC

[reaper247]

LOL, what a bunch of nonsense.

Although, I have gotten used to the hodgepodge of half truths and false assumptions about Breitling across several blogs and boards over the last two years, since they became a public company.

While you have one message board poster claiming that he paid $80,000 for a 1% interest in a single well. That hardly qualifies as a “report.”

While we will never have any way to verify if it is true or not, since its not public information, I will assume that he is speaking from experience.

From what I have seen in publically available information regarding direct investment opportunities, a stakeholder is buying into a royalty interest percentage in the overall prospect, rather than a single well.

If the initial well is successful, the direct investor also receives income on any additional offsets that are added to that prospect over time, without any additional cost, commitments, obligations or liabilities.

If a prospect ends up with an initial producing well, along with two or three offsets that contribute to overall production over the next 10 or 20 years, it could end up being a very lucrative deal for JI stakeholders.

Using your math as the self proclaimed oil and gas pro, you claim Breitling is selling $8M worth of 1% interests in individual wells, to multiple investors and institutions @ cost basis of $3.5M per well.

That doesn’t seem to be the case. The investment seems to be per prospect, not per well.

If those stakeholders end up enjoying the revenue benefits of two additional offsets @ a cost of $3.5M per well, without any additional cost, they would be money ahead because they are enjoying direct participation in a prospect with offsets that may have an overall cost of $10.5M while their initial invest was only $8M.

It is that whole “growth through the drill bit” that Faulkner keeps talking about.

I have never claimed to be an oil and gas guy. In fact I have proudly claimed that I am not, but I do see problems with many of the assumptions being made here and on other boards.

IMO and FWIW.