There are things in which investors could have, and should have been privy too regarding the recent PR; but were left out.
Secrecy to novel ideas, prior agreements, trade secrets, and contracts with second/third parties lends one to understand the why's and how's of "not divulging" certain statements.
In this case I am sure that giving a rate of "drilling", as in say $30,000 dollars per well, so that investors could figure out an approx. net-return would not be the smart thing to do here. Drillers no doubt give different rates per customer on a contingency bases. So this info, which was not in the PR, was probably appropriate. But, it could have easily been stated giving an overall picture to investors, just how much PBLS makes "with a few variables" per barrel.
I am also sure that if Marathon is paying PBLS say $54.00 a barrel, and xyz company who owns the land gets 8%, then factoring in all costs, [without giving away certain 'secrets or sensitive information], PBLS could have given [in tactful terms], a bases on which investors could figure 'approx.' what PBLS makes per barrel.
If these two wells bring in 30,000 barrels overall @54.00; would PBLS need to figure out the overall gross revs here on paper? Absolutely not! But, given the fact that PBLS makes most of that as net-profit, it wouldn't have taken much to allow investors a 'glimpse' of what 'net-profits', PBLS makes of each well.
So if gross profits are $1.6mil as investors tap the calculator -keys, why not in layman terms explain [an overall cost percentage], too allow investors a birds-eye-view of what PBLS actually makes here? As I speak to others around our group and outside... if we didn't know how 'cheap' it is to drill these wells in KY, it could easily be 'hundreds of thousands' in the mind of investors who view these PR's.
One thing for sure.. and that is Paul Alonzo is thinking "gross profits", and not "net profits", from his personal view, and not thinking in terms of "how investors view" each of his statements.
I'm not complaining about what the PR said, I'm complaining about what the PR didn't say, and what all of his PR's don't say. He's going to have to learn the hard way... as stated per conversations with others, that his once "private company life" if now FULLY exposed, and start thinking like an investor and finally get a REAL IR GUY in-house and SOON!
This statement was made in general and not to you specifically.
Regards,
Stephen
ps... investors should have the right to know what PBLS is making in very discreet simple terms. If not numbers, then hint in other ways and not leave us out in the cold on every stink'n news release!!!
