Phantom messages from the past:
Not much has really changed, has it? But never short a dull market:
WWNG and WW Oil and Gas - hey people. Open your eyes, call the company. BIGN has a JV with WW Oil ad Gas 50-50. WWNG WW Energy is the parent company of WW Oil and Gas. We are ONLY involved with WW Oil and Gas. Read the news relating to Success Oil and the Crawer and Gray Gulch properties scheduled for workovers in September. This is huge for BIGN anfd nobody noticed. Success Oil is a turnkey drilling operator and has access to rigs and equipment much better than the standard lease agreement with Schlumberger. Yes the East Texas LOI is far better because if this deal closes we own 2 workover rigs and 1 drilling rig. Nothing could be better than that. So if the East Texas LOI falls thru, we still have the Success Oil WW Oil and Gas deal going. This is the backup plan that BIGN is ensuring is in place in the event the East Texas LOI falls thru. Just imagine if both happen, then we are truley making big money. Eash well at Crawer scheduled to begin in September will put 270K per month onto BIGN's income statement. They have 12 wells planned for workover. I cannot imagine why this news did not impact the PPS and BIGN PR out yesterday was in fact old news if you read the WWNG PR's it came out on 8/3. BIGN just reiterated the event yesterday because the stock was taking a beating and they needed to stop the selling showing management does care about the shareholders and PPS.
In reply to: fratboy72 who wrote msg# 11954
Date:8/10/2006 9:29:23 PM
Post #of 24330
Here is what Boyd told me. Take this as you wish and do not make any investment decisions based on what I post here. This is the truth, no fabrications here.
1. WW Oil&Gas is STILL a 50% owned subsidairy of BIGN. I even called WW Energy and confirmed that yes, WW Energy's subsidiary WW Oil&Gas is in fact owned by both companies jointly 50-50 Biognerics and WW Energy. That issue is put to rest. So any news out about WW Oil&Gas is 50% ours. Any news out on WW Energy is not ours.
2. Name change and quarterly report is on hold until the one or more of the LOI's close. They need to focus on getting the LOI's done. The frankfurt listing was important to attract new investors thus why they felt they needed that done at a minimum.
3. Some of the wells at Grimes are not workable with Hydroslotter but are workable with N20 thus why they closed that deal. For those who thought is was nothing but fluff it may turn out ti be a good thing.
4. The fifth well at Grimes is not going to be slotted because the siesmic data and tests have revealed it will not be a good producer.
5. Six more wells are being targeted at Grimes in the near future once wells 3-4 are done. These wells will require a pipeline to the meter station. Cost about 20K. All six wells have had seismic tests done already and show the same characteristics as Opheila.
6. Once wells 3-4 are done and are recorded as producers in the 1000mcfd range after "stabalization" we will have the following revenue. This will be disclosed publically as stated in the last press release.
Charring Cross 200mcfd
Andreotti 250mcfd
Opehila 1000mcfd
Well 3 10000mcfd
Well 4 1000mcfd
Do the math, considering 25 days of production per month for required maintenance at $7.50 NG prices, I come up with $3.1M in revenues for BIGN (40% allocation after ROI).
7. Financing is secured for the LOI in part by the cash generated from above. Debt based financing is being pursued here. No shares can be issued because the A/S is only 400M and the price is .021 Not much cash can come from shares as I agreed with Dale on this point. It would be silly to dilute at this price and Lancaster is not that stupid.
8. He said the Texas LOI is the big one that everyone as Biogenerics is hoping comes to reality. He said Lancaster feels confident the deal will close by 8/31 or sooner. He mentioned that 1 of the 3 options as outlined in the press release is a done deal. They have a backup plan to satisfy shareholders. The Success Oil Company LOI mentioned by WW Oil&Gas will offset any revenues not obtained from the Texas LOI deal option #1 falling through. In other words, if they do not go ahead with the best option, which was option #1 for the East Texas LOI and settle for one of the smaller options, option 2 and option 3, the WW Oil&Gas LOI i.e. Success Oil will offset any revenue lost from this deal falling through. Success Oil and a turnkey drilling operator but they must lease equipment and have rigs available to them on a more frequent basis then BIGN leasing rigs from Schlumberger. It seems that Lancaster has things covered here. Dale also said that option #1 is not ruled out and Lancaster feels confident it will happen and he said if option #1 closes BIGN will have rigs available to them on an immediate basis. He said this will be huge for the company. He said most companies must wait in upwards of six months now to obtain a workover rig due to the price of Oil.
9. He also said that Lancaster wanted to wait on wells 3-4 until after the LOI closes because the rig cost would not be incurred 60 day delay verse cost of lease...makes sense. However the financing required them to obtain this revenue as collateral so they went ahead and started slotting. This explains the delay from May until now. I agreed with him here but still balked on why nothing was done from January to May and basically was told Grimes has weather issues and it was difficult to get a rig to the site due to demand for rigs being high.
Overall it was a very positive conversation and I feel much better now about Lancaster and what he is doing here. The delays are explained in a stratgeic point of view and I understand now. Like everyone says a company cannot be built over night and after wells 3-4 are slotted this .02 cent stock will have over 3M in revenues. When the other six wells at Grimes are completed (probably within 6 months), BIGN will have another 5.4Min revenues to add to the 3M if they produce at 1000mcfd. 8.4M in revenues and we sit at .02 cents ?? Ridiculous consideration the market has given this little stock.
