Thanks for a good post that deserves a thoughtful response.
Let me take the whole of it, one part at a time.
"But when I read your posts that tried to position yourself as a legal expert, I started to re-evaluate my thoughts about you being a bashing oil expert."
I don't recall ever having even vaguely presented myself as a legal expert. I am not an attorney. I believe that I have presented original source documentation for any opinion I was voicing and consistently asked to be corrected if I was incorrect in any surmise that I may have offered.
"Now I KNOW you are just a BASHER and may have an interest in BDGR failing!!!!!!"
I'm not going to plow that ground again except to reiterate that I have nothing to lose and everything to gain by Dragon remaining a viable entity.
"Your legal info is almost as wrong as it could be. BUT THAT IS not the important issue."
Great. Please cite what I have posted that you think is wrong and I will gladly correct it.
"Your info about the evaluation for a sale price IS ALSO VERY, VERY, VERY WRONG."
Now we're getting to the good part...
In a previous post (#5757 - in a reply to local oil), I stated,
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“I do not know much about the oil business, ….
I also have discussed BDGR, the area(s) in question/you have discussed/etc with a relative's spouse. He has FORGOTTEN more information and has more knowledge of the oil market than all of you wannbe oil experts combined. He has been one four equal parners that brought an oil company to the NY exchange and "rang the bell"the day it started trading, he also was a major owner of another OIL company that was listed on the NYSE, and lastly, he was given a pretty large chunk of a third oil company to get the reserve #s, projections, past performance, etc, etc, etc, etc. for another oil company that was listed on the NYSE since the first of the year.”
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IN ALL THREE CASES, PAST production, projected production, AND RESERVES, plus several other factors WERE and HAD to be presented/determined in order to set the IPO price."
SURPRISE. I TOTALLY AGREE WITH YOU. - - - - For the market and area you are citing in your example. However, it does not pertain to mature stripper production which is why I suggested, repeatedly, that Lou contact (today) Carl David, and to PLEASE pick any operator at random and ask they how they value production. Do you suppose for a moment that all and anybody you contact for confirmation of what I say, that YOU PICK, is a crony of mine involved in some dark conspiracy?
However, if you suspend your disbelief for a moment let me walk you through a couple of key points.
1) The Pine Island Field is 105 years old. It has been drilled and re-drilled over and over. There is simply NO consideration given to "new drilling" potential in a contemplated sale because there really isn't any... anywhere. (More on this later)
2) The market value, upon which offers are tendered in that area are based on BOPD production. I knew this would be a tough concept to swallow because it is totally different from the valuation metric in nearly EVERY OTHER oil field area - all or most of which have a significant amount of additional development potential. Note: Additional potential as I'm using it refers to fresh drilling to be done, or fresh re-completion potential at deeper or shallower depths. It does not refer to equipping empty wellbores.
"YOU ARE A DUM#AS# and must not know anything about the oil world either."
3) I operate stripper production a hell of a lot more economically than your company does. I KNOW what stuff sells for in the area. You don't believe me about how it is valued so I give a name and phone number. And the thanks I get for doing the homework and providing the means by which you can objectively verify what I am saying is to be called a DA. Hey, that's classy.
"How many of you guys have joined together and MAY BE trying TO STEAL BDGR for yourselves?????? You will fail and once again, IT JUST PROVES BDGR WAS probably a good investment for me - one way or another."
Speaking only for myself. I personally want no ownership of any of Dragon's assets (unless I become a SH later on). They are more valuable to me if they survive though. That is only going to happen if they get their act together..
"By the way, Local why would anyone want to call one of your croooooonies, to obtain an answer to a question - your post #6010?"
Great hypotheis you've got there... I suggest that Lou call the head of the Shreveport District of the Louisiana Department of Conservation to confirm what I'm saying and now he's a "crony". Take your meds dude.
FINALLY.... here's something to think about...
BOTH YOU AND LOU HAVE POINTED OUT THAT VALUATIONS IN THE OIL BUSINESS ARE HIGHLY INFLUENCED BY ADDITIONAL DEVELOPMENT POTENTIAL - A POINT I AGREE WITH.
SO LET'S LOOK AT DRAGON'S SITUATION, JUST THE REALITY, THAT LOU CAN CONFIRM FOR YOU IN REAL TIME FOR IT IS PUBLIC RECORD INFORMATION. AND AGAIN, CORRECT ME IF I AM WRONG AND I WILL ADMIT IT AND RETRACT MY STATEMENT.
RUN THROUGH THIS LINE OF REASONING.
1) IF DRAGON'S ULTIMATE VALUATION IS TO SOME DEGREE DEPENDENT UPON CHOICE ACREAGE YET TO BE DRILLED THEN IT WOULD MAKE SENSE FOR THEM TO DEVELOP THAT ACREAGE TO THEIR BENEFIT AND YOUR BENEFIT.
CORRECT?
2) DO YOU BELIEVE THAT ANY PRODUCER PRODUCES THEIR MOST EXPENSIVE OIL FIRST OR SAVES THEIR BEST ACREAGE FOR LAST?
IF "NO" READ ON, IF "YES" SEEK PROFESSIONAL HELP
2) SO, WHAT ACREAGE HAVE THEY DRILLED?
WELL, AMID MUCH FANFARE THEY DRILLED THE FULLER LEASE ON THE FAR ASS END OF THE HOSSTON SHOESTRING WITH THE WHOLLY UNREALISTIC EXPECTATION OF FLUSHING A BUNCH OF OIL.
3) SO, AFTER PR'ING "100 BBL OF FLUID A DAY" WHAT DID THE 7 WELLS DRILLED AT SOMETHING LIKE 200k COST (CORRECT ME IF I'M WRONG ON MY GUESS AS TO THE COST)?
13 BOPD FOR ALL OF THE NEW WELLS IS THE LAST NUMBER I HAVE.
SO DO THE FREAKING MATH AND CONSIDER THE IMPLICATIONS.
IS IT: "Well, we decided to drill this really shitty acreage instead of something really prime" or "It was the best we had to drill."
Sorry for "yelling" in CAPS but some of you guys are being very poor students and NOT doing your homework.
AI
