I didn't bookmark the message so I can't respond to the message directly.
The query was if I had any suggestions for questions that Lou might pose that would assist in his understanding the situation when he visits LA in the near future.
I am not going to suggest ANY questions which are NOT data which is in the public domain be posted, since, as public info, are thereby, by definition, not "insider".
Publically Postable Questions/Answers:
1) What is the average NRI that flows to BDGR?
2) For GOD's sake, under what operator numbers is production reported? (So we can all look it up under SONRIS)
3) What is preventing Dragon from getting oil produced hauled/transported/sold?
4) Ask to be shown EXACTLY how intermittent foul weather adversely impacting revenues. Ask to be shown any "impassible" roads, determine who hauls the oil and call them to confirm.
5) Ask exactly how many and what type of compliance orders are in place from the State of Louisiana. Find out what must be done to resolve any outstanding compliance issues and the approximate cost to resolve. Be suspicious if any operator can't furnish this number as a routine matter.
6) Ask which, if any, leases have had their R-4's (permission to sell oil, etc) yanked. Determine what must be done, at what cost, to resolve the problem.
7) Find out what happened to the highly PR'ed "Fuller Lease". What is that lease making a month.
8) Ask to see what liens have been filed and what suits, if any, have been filed for services rendered.
Inside Stuff That Will Help Lou that he can't post.
1) Ask to be shown the inventory of wellbores (to the extent that it has been done), the condition of each (to the extent that it has been done) and the cost to repair each if repairs are needed (to the extent that it has been done).
Don't fall for a minute for Mario's nifty little PC GPS mapping tool. Actually inspect some stuff in the field.
2) Ask to be shown the AP schedule. How many accounts are 30, 60, 90 days plus in arrears. They use Quik Books, ask to be shown the vendors used. Look for a pattern of vendors being used for a period and no longer used. If you see a lot of churning then investigate to determine if late payment was an issue. Call several of the vendors. A producer will always (generally) use the lowest cost supplier first. Call these vendors and find out if what caused the breakup.
3) Arrange to chat with Ronnie Allen. Find out for yourself what happened. Keep it to yourself but find out.
If you're not too busy, check out Rockwell's chalk drainage project under the Caddo Lake property that Dragon relinquished.
Hope this helps, be careful.
AI
