THIS MAY NOT MAKE YOUR DAY.
I got to wondering why Dragon was bragging about how many possible productive zones might be accessed through the yet to be acquired (supposedly) Arkana lease and hadn't said a thing about the deeper potential of the Caddo Lake property, especially since the local paper is full of deep gas completions in the Hosston and Cotton Valley Formations and that relatively many fewer wells had been drilled out in the lake.
Then my guy calls to tell me that an outfit out of Canada is running title to tie up a giant block of Annona Chalk acreage in the area which is attractive in many areas since it makes so little water and has about 100K bbls/acre still in place. (See Dragon's engineering report for confirmation).
Turns out that although the sale from Gemini to Dragon for the lake property hasn't been recorded yet that what Dragon (be patient, I'm doing my very best to give you the very best information I can dig up and I ABSOLUTELY believe it to be fully accurate but urge you to confirm for yourself) had ONLY bought from Gemini the surface to 3 thousand feet or so and that the Annona Chalk was excluded from that purchase. So, the lease deal for the 9 thousand acres of Chalk (times 100 K bbls/acre) was still held by Gemini. Do the math!
And Dragon, strapped for cash sold a bunch of the lake rights back to Gemini for 1.7 million with the idea that if they could get the rig paid for they could put it to work and maybe have some flush production to PR. So now I'm trying to find out more of what is planned and when it will start, etc..
In other words, they weren't bragging because they really hadn't bought squat.. the rights bought would cover the Nacatoch, Arkadelphia (skip the Chalk) and down through the Paluxy at about 2,500 ft.
So whadda we got? No drilling rig yet (working on it) No audit? (working/not working on it?) 30K bbls/mo production. NOt hardly. Purchased Arkana property? Reworking deep gas well? Pipeline built? From what I hear it's a familiar picture. A promoter shows up, has money to burn, and after the easy cash is spent there is no reluctance to sell more to them on "easy terms" with the expectation that at best the seller will get the cash and at worst they'll have some cash and get the property back. But without a lot of the "deals" being recorded there's not a good way that I know of - my curousity only goes so far - to really find out.
This is the best I have. If anyone wants to refute it please do so.
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