To reiterate. Cohen is in discussions with several major and larger oil field services companies with audited financials, one being a very large competitor of Freedom Well Testing, to combine forces and to pursue a large rollup and capital raise.
The discussions resume today at 3:30 PM EST to discuss structure. Timing between all parties is agreed to be immediately.
We do not want to get people excited until things become more concrete. The combined revenue runrate of the company would be $45M / $8M in EBITDA and there is already a completed audit.
We will disclose more information as it develops.
To answer any questions on the 88 wells in the Permin basin, the wells are shut in but had production of $700k net revenue a year prior to shut in. We have received the LOA (Letter of Assignment) on Josh Watson's operator license. And we have zero public requirement to disclose NOR would any operator ever disclose the API numbers or the lease name - unfortunately when you have predators / bashers like we have, they could easily interfere by calling the railroad commission office and report violations or conditions that were not true (similar to how they try to manipulate a stock price). We have evaluated our remediation efforts and plans with Shawn Rye's dad from ATC / $GPLS - Ray Rye, who is a local pumper and expert in these fields (Note Big Spring is the town where Ray and Shawn were both born and raised), and we are determining now whether $AZRH will remain as a non-operated partner (provide the capital and resources to remediate, collect the cash flow from the working interest after royalties and expenses) vs assume the operator status and be able to assess and value the minerals at a discounted value of PV10 (present value 10% discount) to record as an asset that is offset by and Plugging & Abandonment liabilities.
Unfortunately, there are no shortage of bad actors that will call the Texas Railroad Commission and mess with your wells and remediation efforts, just like there are no shortage of bad actors who will paint a false narrative and bash a stock with a conflated regard for reality, the jobs that our companies provide and create for hard working Americans, and the value we create together with our investors.
AI
