A lesson on properly creating earnings per share:
I have seen some intelligent posts by individuals highlighting the fact that Pilgrim Petroleum currently has no oil production and therefore no cash flow.
Please be assured that it is of the highest importance of the Company and myself to correct this situation.
I have been provided with several tools to achieve this; however, it is of my opinion that the best way to achieve this is by procuring producing properties that meet optimal criteria for an increase in oil production through the use of enhanced oil recovery (EOR) methods such as Nitrogen and Carbon Dioxide injection.
Enhanced oil recovery through pressure maintenance with inert gas has the ability to return marginal or stripper wells close to their original production. In past tests and projects, performed by myself and others, utilizing an inert gas medium to restore production drive to a hydrocarbon reservoir resulted in bopd (barrels of oil per day) rates to be taken from 1/4 bopd to 7 bopd per well.
We have been seeking and negotiating property acquisitions in a variety of properties in Texas; however, we are seeking the optimal producing project to achieve maximum cash flow at the lowest possible cost.
The Company has developed, and is considering, 3 types of packages with corresponding Private Placement Memorandums and Subscription Agreements. The three types of projects are as follows:
1) A series of discovery well(s) drilled to achieve a deeper reservoir prospect, potentially a pinnacle reef based target at approximately +/- 5000 feet in total depth. This project has a success rate of approximately 67% at a total cost of $750,000 with a low estimate revenue potential of approximately $105,000 per month. ($70.00 per barrel)
2) A series of rework packages applied to Pilgrim Petroleum’s existing well count. These projects would be for approximately 50 wells with a success rate of 97% at a total cost of $1,500,000 with a low estimate revenue potential (with EOR) of approximately $130,000 per month. ($70.00 per barrel)
3) A producing property acquisition. (The company has found a cherry prospect) Negotiations are still ongoing and we have not yet formally secured the property or defined terms. This project has a success rate of approximately 99% at a total cost of $1,500,000 with a low estimate revenue potential of approximately $210,000 per month without EOR and approximately $630,000 per month with EOR. ($70.00 per barrel)
Obviously option 3 is my favorite but it is not yet in the Company’s pocket and should be at this point considered speculation.
Please understand that as an officer of Pilgrim Petroleum it is my ethical responsibility to negotiate the best outcome for the benefit of the Shareholders of this company.
In addition, as public forums have not been officially legally recognized as a public disclosure source this info will be posted on our Company’s website in a timely manner.
Forward-Looking Statements: The statements, which are not historical facts contained in this document are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends.
The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.
2010 Pilgrim Petroleum Corporation. The information herein is subject to change without notice. Pilgrim Petroleum Corporation shall not be liable for technical or editorial errors or omissions contained herein.
AI
