Black Dragon Resource Companies Inc (BDGR)

[snowcrow]

Localoil, here's to your analyis:

1 . Very formidable mechanical challenges?

What is your point, Local, that BD has taken on greater mechanical challenges than other producers in the area? Is the whole industry just overcome with mechanical challenges? Not likely.

2. Creditors/vendors long overdue on being paid?

How do you know? Does BD owe you money? My guess is that everyone is slow paying in the oil business. Just like the construction business that I'm in. Besides, if BD was that bad, everyone would just be on a cash basis with them. So, if they owe everyone money, it is because they maybe pay late, not because they don't pay.

3. Spills with uncertain costs associated to clean up?
Litigation?

We've been over this. BD is not responsible. Are you an attorney too?

4. Absurdly low net revenue leases?

Unless you are privy to the leases, how do you know? I've negotiated no end of leases in my life, and they are all different, with changing percentages at various threshold etc. Unless you have the leases in hand, what do you really know?

5. Litigation

What litigation? What do you really know about it? Let me tell you, most companies face litigation. Unless you are privy to the merits of the case, what can you really say on this front? Again, are you an attorney that has read the pleadings, depositions, etc? What the hell do you know?


6. Assume 2000 BBL/mo of production = 66.66 BOPD X $20K/BOPD = $1,333,333 dollars at 75% average Net Revenue Interest. Reduce that by 1/3 to account for 50% NRI and you get $879K. Now divide that by shares outstanding.

Why don't you assume 9,000 / month. That will help your calculations some.

There, I've adressed your analysis. I'm not impressed. Now to the point about needing more real info, I certainly agree with that.