Hi Steve,
First of all, you meant OLEX instead of INNO right? Probably got too
excited over today's gain? Hopefully you have made some gain as
well.
You were pondering why didn't OLEX just put out a press release and
give everyone the same kind of information that they gave me over
the phone yesterday, actually, a lot of info were not new to this
thread. I remember $3 per barrel of production cost using the swabbing machine was posted sometime ago, so was the currently daily
production of 200 barrels per day. Further, someone also mentioned
that there might be a deal between OLEX and some swabbing maching
company, but I think that was lightly regarded not only because
OLEX was on a downtrend during the end of the year small-cap sell
off but also because it was only an unsubstantiated rumor. I think the mood of the thread was not very optimistic and frustrated during
those times with no news and lack of PR in general. Oh, frustrated
because all of us felt that this stock was so undervalued with $500
million dollars of reserve but was on a slide to as low as .29. I
guess whoever had the vision and picked it up at that point is really rich now with tripling of his/her money! No, that was not me... :)
The well numbers for each site could also be found on its company links, with some modification from recent purchases of course.
Yes, I was surprised the amount of new information that I was able
to elicited out of Mr. Allen Burditt(731-629-5998), who is the consultant for OLEX and whose biography can be found at OLEX's web page. I found out how much those Xerics wells cost which, oddly, was not mentioned in the press release. I don't know if company is afraid that 500,000 common shares (2 year restricted) is too high of a price and therefore did not want to let people know, or if that is simply an oversight. I cannot answer that and will probably ask him next time. However, from today's action, the investors didn't seem to think those wells were over priced! Let's see, at an estimated reserve of 1 million barrels and a sale price of $22.75 per barrel, that would be more than $22,000,000, which I think is a lot of money. I don't think that is too much a price to pay for. Any one has any opinion on this?
The fact that the management themselves own a lot of shares is a welcome sight to me, at least this means they would want to maximize sharesholder's value since they are in the same boat as us. Mr. Burditt was pretty excited when we were chatting about OLEX's last week performance and had envisioned much greater things for this company.
I do think they needed to clarify the "minimum" of 3 machines in the Revilo Unit on the press release though. I was really puzzled and just had to pick up the phone and get it straight. Same goes with their explanation of 60-65 barrels each time of swabbing. Now at least we are all clear.
One thing that I had failed to mentioned was that the reason why alliance with ORSI is profitable to OLEX is not only because OLEX gets to have a percentage of the profit, but also because other oil companies would really want to buy this machine. According to Mr. Burditt, there are more than 10,000 wells in Texas, if one wants to put a permanent pump on each and every single one of them it would be very expensive. But then again, how else could you pump oil but using a permanent pump? Here comes the solution though: with a PORTABLE swabbing machine one can drive the trunk around swab the most productive wells all the time and increase production effiency and decrease overhead. What I should ask him next time is if there are comparable systems in the market.
I find the possibility of a company writeup from one of those investment companies most interesting. Frankly, I haven't heard it from anyone and didn't think I heard it wrong either. We all know what kind of impact "some" exposure will do for this company.
Sorry I am taking up everyone's time, if you are reading this post, of course....but I have been chewing on those info from yesterday the whole day today and have re-read all the news release and posts just tried to understand what implication, if any, all these means. Like I said, I am optimistic, and had contributed to the third and fourth trades today, both buys. I encourage everyone to talk to the management and get more info. And when you do, PLEASE do share with me, email if you want (nchiang@student.med.harvard.edu). It seemed like a lot of action is going on, because Mr. Tom Goolsby said that Mr. Burditt will be in NY this Thursday for a meeting, and that Mr. Burditt said many plans are in work. You know, come to think of it, could the reason why Mr. Burditt heading to NY is because of meeting with some investment companies? We will see.
I agreed with John that this thread if really quiet today. I was pretty excited when I was composing that letter with all the info, thinking that finally I have something substantial to contribute to the thread, unlike the parasite that I was before. But I guess not that many people have read it.
About today's stock movement...why is it that during the first hour of the day the trade is always so slow, something to the effect of less than 30,000 shares? And would then explode later? There were lots of buys, obviously, some 10,000 blocks, and even one 25,000 closing at the ask price of .93! Many someone do know some more information than what is revealed on this thread? I agree with John that the upside movement is probably not over yet, and that $1 level may be attained tomorrow. However much I love the stock to go up, I would preferr it to go up slowly. What does everyone think?
It seems like several of us are pretty optimistic about this company and think it is still undervalued. I would really welcome the view of anyone that thinks otherwise. I think it is important for all the perspectives to be exchanged, because only then will we able to know which way our investment is heading.
Alright, I will stop, sorry this has been a long one, will try to contain myself next time. I should spend more time studying iron deficiency and hemolytic anemia and less on watching the market.
Anyway, good luck investing everyone!
Nanlin |
