caljr - Knight or good-night?
As always, I may be missing something however I hadn't heard of your knighty-knight thing so decided to take a very quick glance at SEDAR filings.
Initial concerns IF I were (I won't) to be trying to bid for a few shares.
1. People power. Doesn't really look like there is a whole lot of past o&g experience present. Definitely some of the rocks stuff with the pres. being ex-CEO/CFO for Donner Minerals and VP Exploration at Diamond Fields. One director, Wright I think, was a director at VEL Velvet which has since been taken out however did o-k.
2. Geography. Addresses shown in mgmt. circulars toss up places of residence such as West Vancouver and Vancouver for directors/executives. Office address is on Robson Street. I guess argument could be made that the office was close enough to an airport for when the co. used to be called Aster. At that time there seemed to be some thoughts about exploring for gas in California.
3. More geography. Current revenue appears to be coming from financings and a 15% interest in a gas well near Ft. St. John up in the northern half of B.C. I never looked to see exactly where the well was at. The co. has also farmed in to some 13.5% working interest non-operated effort in northern B.C. at Lagarde, B.C. Generalizing for sure however the NE part of BC tends to be somewhat expensive for a variety of reasons. Often deep pockets are required in order to be successful.
4. Recent news release you highlighted. Words like "environmental restrictions", "5,000m test" and "MILLIONS OF DOLLARS" all flashed some caution lights. ALso, general working interest is 25% however initial cost estimate for that pleasure is $2.25mil.......
5. Financials. As of June 30 working capital was just under $166,000 Since then there has been a $490,000 private placement and I'm assuming that will be in order to pay for the drilling at Lagarde. BIG question -- how will KNP be paying for the foothills farm-in? One thing for sure, the Ft. St. John well won't be throwing off enough cashflow to do it............
6. I'm tired. Was going to rant a bit about general and admin. costs. Noticed in the past some pres. pulled out $160,000 for year 2000 work however it looks as though he's gone. Some of the directors remain. Were they vocal then when that was in process? I don't know. Also, 9 month g&a and travel, salaries for 9 months ended June 30 is a few thousand (less than 10) dollars short of $200,000 More questions........
As first indicated, maybe I'm missing something.
Good Knight or good night?
Good night. |
