Ditchdigger, I will not deny that as of July 31, 2003 the company did not have sufficient funds to pay its liabilities. We have had our backs against the wall for a long time and are still not over the hump yet, but I feel that our recent success in the field is going to help this company get turned around. We have hit wells of 100, 80, 60, 42, 55 and 225 MCFD for a total of 562 MCFD before any stimulation. Devonian shale wells have a very long life (they can produce for 135 yrs.)...stimulation is used to break up the shale around the well bore in order to reach more fractures and increase the well reservoir (it has shown a 2-5 time increase of daily production in this area). If these wells could produce 1,250 MCFD after treatment and using $6.00 gas you're looking at $225,000/mo. gross...we might not have to go to the market again to raise cash which we would like to avoid if we can. We had to raise the $300,000 to get started in KY...sure we would've wished to close it at higher price but compared to where our stock has been, and the risk the buyer had to take to start the KY program, I don't think .20 & .30 is too bad. Also, I don't mind if the seller of the KY property converts to stock b/c this property is looking like a winner...I think the value gained by the stock will far outweigh any dilution.
Well, there's my optimistic and biased opinion. I'm sure there will be hurdles to overcome as well as uncertainties, etc. I'm just hopeful we're going the right direction and would love to be a YeeHaw candidate.
Best regards, SS |
