Replies to post #23003 on Bakken Energy Corp. (BKEN)

[Edward Munch]

Thanks, tufan. This DD certainly builds confidence in holding Bakken long term.
ORFG

[fawd]

EVERYONE MUST READ Correct Green River DD!!

This is the correct Green River Refinery DD. Really encouraging stuff. Great work Tufan!


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It's a no-brainier to at least take a starter position in this.

[DragonBear]

Correct Green River Refinery Info:

Ecodomaine Refining, Inc before actually completing the purchase of Green River Refinery, spent past 1 year refurbishing the Green River Refinery.

And exactly what equipment was refurbished? The realtor link you dug up provides an interesting answer:

Realtor info

Note the 09-Jan-08 amendment.

EcoDomaine Refining, Incorporated (EcoDomaine) owner and operator of the petroleum liquid refining plant located in Green River, Emery County has requested to administratively amend the existing Approval Order within the provisions of the Utah Administrative Code UAC R307-401-12, Reduction in Emissions. They intend to render the fluidized catalytic cracking unit and the catalytic fuel reforming unit inoperative. The Methylene Tertiary Butyl Ether production process originally scheduled for installation will not be constructed. These items will no longer appear on the equipment list. As such the plant will not be capable of refining organic liquids into consumer fuel products. The plant will only be able to distill the various fractions of the raw organic liquid feed stock. These separated fractions will be sold to the market place.

It has no known capability to refine the waxy oil into gasoline.

After refurbishing Green River Refinery in 2006, Green River Oil Refinery was valued at over $16,500,000 in 2006.

Wrong. Per my previous post on the subject,

Previous post

EcoDomaine hired an appraiser. They told the appraiser what refurbishing was planned, and on the basis of those plans to appraise what the refurbished plant might be worth after the work was completed. The appraiser gave a $16.5M value. Yet we already know from the realitor disclosure, that work never occurred. Thus, the appraisal value based on the assumption the refurbishing would occur is not valid.

The valuations for this property based on its history: EcoDomaine buys it for $500K in 2006. In 2010 it's placed in auction for a starting bid of $135K. Then recently the NAI realitors puts the property up for sale at $3.5M. We know the increased value $3.5M has nothing to do with the refinery. Maybe the failed Bridgestone proposal to build a new $200M refinery, bid the value of the land up subsequently?

So what does the ORFG mean when it states:

The Green River Oil Refinery was valued at over $16,500,000 in 2006 and the company believes its true value is closer to $70,000,000 once it is up and running.

Note the words "was valued". True, in 2006 there was the appraisal for $16.5M based on refurbishments yet to take place, and never did. Did ORFG management tell its stockholders the refinery IS worth $16.5M? No. Did they give any basis for "believes" its true value is $70M? No. They could've inserted $35M or $140M - they can "believes" whatever they want. The PR contains a very carefully crafted statement. A statement which technically doesn't lie, none the less decieves the stockholders.

BTW - what exactly did ORFG give as the proposed acquisition price in the LOI? Only in the microcap world are stockholders kept in the dark as to the proposed acquisition price. What does a ORFG stockholder know about the proposed acquisition? What will be the cost to bring it online - assuming it ever is brought online? Permit issues? What will the plant produce in what volumes, with what margins? It's likely stockholders will be asked to guess. We already know it won't be the typical oil to gasoline or diesel refining. In another words the $70M out of the air figure is bogus.

Yet to come is whether or not they will announce the acquisition has completed. If it gets that far, past the LOI, then they need a 3rd party to provide cash for a convertible note. One can safely lay bets the seller and realitor will want cash, not microcap stock. Then if not too convoluted, one might be able to figure out what the acquisition price is for ORFG. In the meantime the PR hype is good enough to support the continuing stock dump by insiders, and affiliates.

[bad_trader]

Thanks for your dd Tufan! I too found the same info when looking into this.

[fawd]

EVERYONE needs to read this excellent DD!

I found the same results myself, Tufan.


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