Replies to post #8061 on Pilgrim Petroleum Corp. (PGPM)

[downsideup]

Bruce Hall, the new ACLE board member, is the CFO at Knight Energy Corp. (KNEC):
http://www.knightenergycorp.com/
http://wallstreetresources.net/pdf/fc/KNEC.pdf

Their model for development also includes having a services subsidiary which allows them to drill wells on their own schedule without relying on scheduling outside contractors.

Looks like PGPM/Lariat/ACLE have decided to adopt parts of the Knight model for future development.

I don't know what PGPM has actually been doing with the rigs they own / owned... and I don't know how many they own or owned, or what capabilities they had. The first posts here on the board talk about acquiring multiple rigs, but I haven't been through all the posts to see if anyone ever determined what they did eventually get in fact...

I guess the plan was to conduct serial workovers on the existing wells in the fields they acquired... which varies from 80 to 100 depending on the PR... and then leverage the result of that effort into drilling new holes. My assessment is that the workover plan might have provided some sort of an income, but not the sort that would likely appeal very much to shareholders, but perhaps just enough to keep the employees paid. Obviously, PGPM didn't make enough from that plan to forestall dilution... and I think if they had drilled new holes we would have heard about it... although, having Lariat being privately held, there is no telling what they have in that black box.

I don't know if PGPM ever acquired the rigs, or how many, or if the rigs also got transferred to Lariat as the "operating company" doing PGPM a big favor by holding onto the PGPM assets for them...

I do wonder if the reported $1.5 million sale of rigs to Knight might have provided a source of funds that enabled the acquisition of the ACLE shell...

Knight's "oil and gas leases covering 1,240 acres in Stephens and Eastland Counties" are on trend with the Archer County holdings of PGPM, with Young County between them. Does that suggest that the PGPM leases are likely to have similar potential as those held by Knight that are developing production... ??? Don't know. Still leaves us with open questions re the real value of the assets... but also means we have a new director at ACLE who knows something about the region and the development of its potential.

Does any of this mean anything ? Who knows. I expect that at a minimum you could take away from it that ACLE does have something that PGPM and Lariat never had, which is a proven ability to raise capital, and at least one team member on the board who has had some relevant success in the oil patch.