1. Apparently, Four Star is the operating Company, (correct me if my assumption is wrong) is there enough work in BDGR to work more wells?
Four star is the operator ... Petrol is the service Co whose sole customer is Four Star ... by last count (this data approx 3 mos old) Dragon had total potential for approx 960 wells ... in March 07 they had approx 360 active ... if we take Joe at his word that he is trying to bring on roughly 10 new wells/month, then they should be right around 400 today ... this # could be higher if they have brought new SWD's on line that would allow them to reactivate adjacent wells more quickly
2. And if so, is there enough work to justify recruiting a full-time operator or, better yet,
see above .. Four Star is a full time operator whose sole customer is Dragon ... the issue is how efficient/cost effective they are/are not. IMO Four Star (and Petrol) are poorly managed and grossly inefficient. To some extent the issue is the cash constraints that they are working under. This is a catch 22 for Joe. IMO, he desperately wants these operations to function cost effectively and efficiently but his historical neg cash flows are in large part feeding the inefficiency ... lack of credit forces cash pymts for mat'l, consequently, purchases are often as needed v. more economic advance buying. Mat'l shortages force on the spot buying (again not very cost effective)... poor mgmt and lack of control causes waste of materials or worse ... work assignments are made in a fire-fighting mode v systematically planned out ... you get the picture ...
3. Become our own operating company?
From Joe's standpoint Four Star is his own operating co ... not trying to be cute here but that is the reality of the situation.
4. Do you see BDGR as a company that can move beyond all of this BS and become transperant and a full reporting company?
in theory ... maybe but not in its' current form ... in practice ... IMO, slim chance and then only after a very, very long and uphill battle, the success of which again IMO, assumes major personnel, corp structural and operating changes take place from the top down and across the affiliated companies ...
