excerpt from recent shareholder letter:
Same ol' same ol'? 'we're gonna, it might be great'
"our test of the “mosquito bill” process on PV#5 well produced production results far more favorable than anything we anticipated. Accordingly, we are rigging up all of the other six horizontal wells in preparation for a SURGE program, and will install pumps that will allow us to accelerate and stabilize production. Once the “mosquito bill” tubing is installed, we will simultaneously inject all seven horizontal wells with a mixture of super high temperature steam and light oil (diluent) under high pressure for several days. Then we will let the formation “heatsoak” for several days and then we will turn the wells on to produce. Could be spectacular, especially with oil prices rising!"
I know I haven't been around much and haven't kept up ... but wasn't this what they were doing last spring/summer, steam soaking PV wells? I guess there are more of them now?
Sounds pretty much like the same process as last year ... spend a LOT of time and money steam-soaking wells, flip the switch on for 10 minutes, get 2 barrels out of each of 7 wells in a 10-minute period before the flow stops, mathematically extrapolate that out to an imaginary 24 hours of production and then loudly claim 2000 barrels per day of production.
It was about this time of year last year wasn't it. Is this going to become the Annual Spring Fling of 'test production + wild claims' to raise interest in buying private placement shares? Will the proceeds from these 14 barrels help pay for the annual summer vacation at the Alaskan roadhouse?
How many shares out there now? From the SH letter:
"Our $30 million capital raise program ($3.5 million in project partner subscription, $6.5 million in equipment sale/lease back and $20 million in private placement of convertible preferred stock)"
Convertible preferred now. Gee, isn't that the preferred method of starting a true death spiral of toxic financing/dilution. I wonder what the conversion rates will be? At least they're not going to place regular stock, at recent PPS that would come close to doubling the outstanding and put nearly another 20,000,000 shares out there.
Amazing, you just can't make this stuff up.
JMHO
jonesie
Yorkville / Cornell Tracking Board #board-9964
"I can think of no more valuable commodity than information"
