Charts,
Thanks for an intelligent and well reasoned post. I will respond point by point."
"Localoil, thanks for a nice comment."
Good Sir, you are more than welcome.
"Legal Expert - When a person posts legal info to try to persuade, convince, or "sell" someone on an idea based on legal info, they are indicating they have sufficient expertise to establish a stated position as fact."
I have opined as best I can as a layman and have qualified my remarks as those of a layperson. If you opine to me that "the law requires that if you are caught driving drunk then you will be arrested" then I don't assume, through the line of reasoning that you posit, that you are a legal expert.
"Thus, ARE you withdrawing/retracting your statements and inferences? Your facts appear to he wrong."
I will gladly withdraw/correct/amend anything that I have said that is incorrect. If you will kindly point me to any utterances with which you take exception I would be much obliged. I am learning too..
"I have no doubt that you quoted actual legal info, but apples should be compared to apples, not to gas/cars/buildings/etc. Do you get my point?"
Actually I don't, please see above.
"Based on your definition (even for Pine Island), are you saying no more wells pumping oil on the existing leases are possible?"
Explictly not. There are no doubt some existing wellbores that can be profitably equipped and produced. I was trying to make the point that there is not a lot of drillable acreage available in the field and used the recent drilling on the Fuller least to illustrate my point.
"Also why did you put "new drilling" like you did vs. just saying new drilling?"
Because I wanted to make it clear that if you equip and existing wells, as previously detailed in earlier posts, you may get some flush for a couple of days but nothing like the flush production from a new well. I have also sought to illuminate the distinct possibility of "recompletions" of existing wellbores at shallower depths as having some as yet to be demonstrated potential. When a program is instituted that qualifies and quantifies the validity of such a recompletion program then the speculative value of doing so based on the number of wellbores available for such in light of the supporting geology should be included in the valuation metric.
"I may be wrong, but if there were a gallon to billions of barrels of oil to be tapped/pumped somewhere on BDGR leases that will not to be pumped from a currently producing well, it would be considered a reserve. Am I wrong?"
There are a number of distinctions that have to be made there. Basically there are three classes of reserves and each has a different confidence value and each is included with a different valuation in standard accounting. They are "probable", "proven" and "possible" if memory serves.
As I have earlier detailed, the ROIP for Pine Island is huge but producible only at a low rate. This is why the valuation metric that I have detailed prevails. You can have 70K bbls/ac in the chalk but it's only going to give it up at .25 BOPD is just one example.
"You have used the following statement several times and you have not answered my questions: "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.." How are they more valuable, etc? Yes you did the good guy thing, the environment, etc; but would you tell us all the real way you win?"
I will decline to do so in more detail for the time being, thanks. It is however a truthful statement, except to mention, again, that it is in my best interest that they survive, can pay their bills, don't call undue attention to the area from spills or enforcement issues, etc.. If they go TU, then those wellbores will be out of circulation for a while.
"My comment, "By the way, Local why would anyone want to call one of your croooooonies, to obtain an answer to a question...", I WAS NOT TALKING ABOUT THE STATE/Government, but your buddies/friends. Some government people could be like most organizations have (less than honest), but as I stated I was not talking about government employees."
Which is why I suggested you call Bob Grey, head of the Orphan Program so that you or anyone else could confirm, for yourself, that there are thousands of stripper wellbores that you can acquire from the state, if you are an established operator, for free. I thought this would be an effective way to illustrate the falacy of ascribing some absurdly high value to "potential" when clearly the arms-length valuation of those wellbores is $0.
"Localoil, I will give you credit for showing some intelligence and you can develop a position, event though I think it is designed to hurt BDGR. Why did you give a name for people to contact when you cannot provide how to contact the dude? WASN'T THAT PERSON SUPPOSED TO BACK UP SOME OF YOUR COMMENTS?"
I'm not Jesus. I told you I will dig up the guys phone number. Why don't you give me credit for posting more information, names and phone numbers that you can use to confirm and learn needed information than anyone else has done to date? I don't deal with the gentleman on a regular basis but WILL get his phone number for you, and that is a promise.
In the meantime, you can call any producer in the field and ask the same questions and obtain the same information, in which you may have, perhaps, more confidence.
