Lets Review Some of Today's Debate
First, oil drilling tends to be a messy business. Accordingly, there are procedures to control environmental damage. Our friend Kro visited the Wilson site without an escort by company representatives, took pictures on that day many months ago, and now there is discussion of "reporting" an oil spill. Yet there is no current evidence offered, nor is there any proof offered that the amount of oil in the referenced photo exceeded the two hundred gallon (@ 5 barrel) level that would require a formal TRRC report. While I expect Titan Oil to manager our fields in a responsible manner, I would also doubt that an "investigation" would be launched on a report based on references to internet photographs from someone who has never set foot on the site. I would expect that the landowner would have taken action months ago to protect his land if there was a major issue and not leave it to someone on an internet chat board.
Next, the multi-million dollars assets that were placed on the TNOG unaudited financials during the Jacobson era were probably the then management's estimate of the dollar value of the recoverable oil reserves at the leased oil fields. While the current management made what I would consider a prudent decision to remove that line item from the financials, there is plenty of precedent for oil companies to estimate their reserves and place a dollar value on them. Based on Pete Maupin's field report, such a valuation would be a conservative number. Will the scenario in the report and subsequent PR play out? Only time will tell - but note that as of the last formal TRRC report there was oil being pumped in Wilson County so the scenario is still being played out.
Finally, I am curious about all these statements about reporting Titan Oil to the SEC. If I understand correctly, the parties mentioning reporting Titan do not have any stake in the company, nor as far as the discussion has revealed, have there been any attempts on the part of Titan Oil representative to solicit purchases from these parties. Since following Titan is mainly a hobby for these folks, it will be interesting to see what standing they can claim in protesting any actions taken by Titan. No loss - no harm.
Just my take on today's discussions, I am sure that I will hear more. Keep doing your own DD and Good Luck in the Oil Patch!
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