Question for the board: With the news of the symbol change last Friday does this mean starting on Monday next week that shorts have to begin covering?
Also I really dont like what the new A/S is and I know some shares will be sold. However, I think if chunks of shares are used to acquire more leases and more production that would make great news for the stock price. We have a healthy oil price right now. Actually, all the years I have been in oil and gas the perfect price range in my opinion has always been $75-80 a barrel. Any less it gets harder on income, and more its just bad for the economy and consumer. Especially with shallow wells the lifting costs can be brought down and operating costs relatively low. The only problem with having shallow production is you need more wells to make a decent amount of oil so you are always buying parts like belts, hoses, valves, etc. I hope the gravity is good on their leases because heavy oil sucks to deal with! Especially when cleaning tools or when it gets on your clothes. On top of that you are usually forced to spend money on chemical to break the water out of the oil. Nothing more frustrating than finding out your load is getting rejected because your BS&W is over 3%.
Since COVID I know in my area of oil and gas operations a lot of the older guys are retiring and just dont want to deal with it anymore. Probably the same in north TX. A lot of owner financing options are available so im sure swapping some stock to acquire instant production is a very lucrative option right now.
To save on how much stock goes out for an acquisition I wonder if a smaller chunk of shares can be used and then payments out of production to the previous owner can be made. I am also curious if these leases have been water flooded yet. They probably have, but if they havent if they drill some new or workover existing producers into injection that could have a significant impact. Looking forward to that.
I have never been to the Electra or Wichita Falls area, but I bet there are wells all over the place that could be acquired. Usually all you have to do is hang out at the local oilfield supply store and ask the guys working there if they have heard any talk of anything available. If not then just drop a line saying "well im looking for some production". You do that I guarantee you will hear about something becoming available. For the right price of course! HA!
AI
