There may very well be. But at this point, it's absolutely reasonable for shareholders and prospective shareholders to question, 'where the hell is this oil?'
I mean hell, we are now in October and the press release of an oil strike was in January, yet not one morsel of oil revenue from Belize has shown up on the balance sheet. The company also has since cooled in its stance and or claim from the initial release. And at a convention in March Steve York referred to the strike as the company hitting an "oil show." Now the verbiage has been reduced to "zones of interest."
I have a sizable position in the company and I have no plans to reduce or eliminate my position any time soon. And I fully realize this is a startup company for the most part. But at some point, as they say, it becomes time to "sh_t or get off the pot."
The company has made progress. The company has potential. The company has clearly spent time, effort and money in acquiring additional drilling equipment. The company has clearly spent time, effort and money in acquiring additional concessions. But at some point people want to see at least a shred of evidence on the balance sheet that correlates with press releases and projections. I'd absolutely love to see this company succeed because I have a vested interest in its success, but it's now abundantly clear to all that Treaty should refrain from making any future production projections, as virtually every one of them to date has not been accurate. This has now evolved into a credibility issue for the company and as Treaty is trying to get off the ground and galvanize support and additional funding, it cannot afford a credibility hit.
There are always setbacks in this industry. We all know that. Circumstances sometimes prevail and it becomes prudent for companies to adjust accordingly. But as we have all now seen, the market has given virtually no weight whatsoever to press releases, bubbly production projections and facebook photos that show oil sitting in tanks because to date this hasn't had an impact of any significance on the company's balance sheet.
For people who want to flip and trade for pennies, then by all means, continue to do so and keep following charts. But with the shares outstanding and with not even modest oil production thus far, this stock price isn't going anywhere until there is substantial, hard-boiled increases in earnings.
Lastly, I think it would be wise for the company to face shareholders and hold a meeting or at the least hold a teleconference. Major corporations do this every quarter. Treaty can certainly do it. Face the people who are already in the boat with you and answer their questions, field their questions and concerns and step up and provide clarity, perspective and insight. And release a detailed, thorough presentation on the company's Web site just as other small oil companies do. Release it and update it four times a year. These are not unreasonable requests at all.
