TO ALL - Called Allen Burditt at OLEX:
Called him today again to try to figure out what is going on with the operations, production, and other business related activities.
Texas operations - In the Big Foot area they are reworking the wells to take advantage of the 4 additional pay zones that they discovered. They will be in January working to get an additional pay zone 100 feet below some of the wells up and running. They are working to lay the gas piping and other maintainance items. When they start back up at the begining of Jan. they should be producing about 300-400 bls/day and production should be increasing from there. They have 4 oil recovery systems and are going to be receiving 2 more in Jan. They operating cost of them is around $2.50/bl. He said that with the 2 additional systems and the increases in pay zones they are looking to get to 1,000 bls/day off of all of the Texas wells and not just the Big Foot by the end of the 1st quarter (March 31).
Other Properties - I asked him about the White River Dome and he said that they traded the NE section. They did not fully close on the NW section and after they looked at it further, they backed out of it. He said that it was not as good as the NE section. They still own a 3% interest. They also have a 12% working interest in the WV property. On both of these properties do not have to put out any in the development cost, but reap off of the revenues.
Acquisitions - They have 300 wells currently and are planning more acquisitions next year. They don't know for sure if they will be issuing more stock for future acquisitions, he said that would depend on the negotiations. He also said that they would do what would be best for the co. and looking at all of the knowledge/background of the people they have, they should do OK.
Business - Since they had so many acquisitions this year, he said that the SEC wants another year audit done that includes all of them. They are currently in the process of doing the year audit and they hope by the end of Jan. to have their 10KSB completed and submitted. After that they will be full disclosure and required to submit 10Q's. He also said that at that point they will qualify for NASDAQ small cap, and they will apply as soon as their audit is completed. They got this new pr firm to also assist them with getting in touch with investment brokers. He said that they are in talks with 3 big name investment banking firms that could possibly pick up this stock and recommend it through their 100's of brokers. He said that a rep. from one of them was there looking over the operation and said that the stock should be valued at $5 instead of $.50. He said that they will have a pr out in the first or second week of Jan about this.
I think I have included everything that we talked about. Good luck with your DD and have a good weekend. Tried to get some at .42 but they would not give it to me. Oh well.
Marty - I have not included my e-mail address on purpose in that it would give away more about me than I want. I only have access to the net at work. If you want to contact me through e-mail, I could contact you and that would give it.
Have a good weekend,
Eric |
