Replies to post #118910 on DD Support Board and Research Team

[integral]

First off, Fort Stockton does not have the resources to support this. It will require significant infrastructure. Fort Stockton is far from anywhere.

Secondly, I had dinner last night with a colleague in the upstream E&P side of the industry. It was explained about purchase contracts and transportation. There is already an infrastructure in place to deliver crude.

To establish a downstream refinery in such an obscure location could cause a second transportation cost and even a third.

Producers in the upstream have contractors who negotiate the best deal, and adding costs at $50 oil is not going to interest the buyside and the end user.

It was mentioned that a half a penny per barrel is a deal breaker.

This is one opinion for now, get back later with more.

[samsamsamiam]

MMEX - stinks a bit of self dealing.

https://www.sec.gov/Archives/edgar/data/1440799/000147793217001106/mmex_ex11.htm

Jack Hanks being involved with both companies involved in this deal.
https://www.sec.gov/Archives/edgar/data/1440799/000147793217001106/mmex_ex11.htm
WHEREAS, on the terms and conditions set forth herein, the Company desires to issue and assign to Purchaser a total of 7,000,000,000 shares in two tranches (the “Purchased Shares” or the “Shares”) to acquire the Project Intellectual Property Rights at a nominal valuation of US$ 344,459,120 constituting a share ownership interest in the Company to be determined by a valuation and fairness opinion issued by a third party independent consultant retained by the Company (the “Assignment Valuation”); and


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What might the cost be for putting that deal together
It appears to include the land purchase:

2. THE CLOSING
 
2.1 Closing Date. The closing of the transactions contemplated hereby (the “Closing”) shall be held on the Effective Date or at such other time as the Company and the Purchaser shall agree (the “Closing Date”).
 
2.2 Delivery. At the Closing: (a) the Company shall issue and deliver to the Purchaser an accounting statement by its transfer agent, that the First Tranche Shares are registered by electronic means for the account of the Purchaser and (b) Purchaser shall deliver assignments of the Project Intellectual Property Rights to the Company including, but not limited to, the recorded assignment of the Purchase and Sale Agreement between the Purchaser and Hayes Parker, Landowner, the land location for the Project.

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Located 20 miles northeast of Fort Stockton, Texas, near the Sulfur Junction spur of the Texas Pacifico Railroad, the 250-acre facility intends to utilize its connection to existing railways to export diesel, gasoline, and jet fuels; liquefied petroleum gas; and crude oil to western Mexico and South America. Once completed, the Pecos County refinery will be one of the first oil refineries built in the United States in more than 40 years.



which has me wondering - Hayes Parker had a property (or maybe even the same property) listed for sale (10 miles NE of Fort Stockton v. 20 miles northeast of Fort Stockton in MMEX pr) and he mentioned the neighboring property selling for $1200/acre. which would put the property value at about $300k for 250 acres?

http://www.mineralrightsforum.com/m/discussion?id=4401368%3ATopic%3A615463


http://www.mineralrightsforum.com/group/texas-oil-gas/forum/topics/mineral-rights-for-sale-in-pecos-county





So would it cost another $340 MILLION for all this:
WHEREAS, Purchaser has developed intellectual property rights related to the Project which include, inter alia, a business plan, cash flow models, a Purchase and Sale Agreement executed for the site location, potential refinery feed stock supplies, water resources, consulting services, refinery technology, potential railroad transportation agreements, management team and other Project development rights and due diligence (the “ Project Intellectual Property Rights”) which the Company identifies as good and valuable consideration in exchange for the assignment of Company shares; and



and then they need another $450m to build it????


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