That is correct - he was buried in Corp debt, for years, with maximillian. NOW their finally out of the picture. Not a bad deal settling for only $700,000 on those terms. He went right after more shallow plays in Michigan which could compliment the 20 existing wells in Calif East Slopes. The current global glut that is filling up storage facilities here in USA, will shutter and BK many many independents. Only the nimble small independents that have low operating production costs, minimal labor costs, and low to zero banking debt service will survive - if they have to shut down until prices rise later. Any others - they’ll have to be lucky as hell to find any banks willing to loan any further capital. They will not throw good money at bad and if they do- after the companies shutter- the capital inflows are already drying up, I was informed by a friend in the oil patch. Thousands of jobs WILL be lost that over last 3/4 years took great effort to build. In times like these- assets can and will be acquired - at bare bottom down cycle prices - that later on will be worth much more in valuations, when markets recover- and they will. JW’s future rests and his shareholders potential windfall with any stock purchased on his ability to produce cheap oil, and not pay too much for any patches, along with avoiding taking on too much debt. Debt is ok- but as long as it’s serviceable with generating revs and JW does not keep producing negative filings to avoid showing positive cash flows for tax purposes that passes thru. Does he really care about raising PPS for himself, shareholders and later better types of financing - jury is still out. I would like to think that at some point he would. But - with a fairly clean canvas to now paint on- question is in short term- is he idling his collection of 20 some odd wells in east slope and waiting this out - or how does he move forward earning any revenues - bc I don’t see at moment how he can do that in this atmosphere. Time will only tell if the Phoenix can rise from the ashes on this one. It’d eventually be refreshing to actually see pps increases over next 3-6 months and more investors moving in - fresh new blood - and more market makers. Is there potential sure - but ball is solely in JW’s hands and we’ll see if he can handle a full court smothering press without maximillian no longer on his chest like a piano. Now the piano is off - but unfortunately bad timing with JW has with mother Russia and Saudi sheiks pissing all over each other, neither are America’s real friend and both are trying to kill American oil and gas after an amazing last 3/4 year production boost. We’ll see.
AI
