Good to see a few people still here. Did anybody attend the annual meeting today (April 16, 2pm)? If so, please enlighten! Thanks.
Focusing on the positives of the news release:
Kentucky gas development project: doubled production from 500 mcf to 1000 mcf (1 MMcf) for 5 wells (avg 200 mcf/well), with 25% working interest. Assuming this volume is maintained, and a low commodity price of about US$2.25/mcf, that's approximately US$560/day for Dynamix. DYX also wants to participate in another 5 well program in the area this summer, and up to 40-60 wells over 5 years.
Another 25% interest in the project is held by First Star Energy (FST-ASE), so that is a good source of info if not from DYX (now harder to get ahold of... see below). Not sure who holds the other 50%... anybody know??
Undoubtedly, there are operating costs, but with the potential revenues from Kentucky, 1999 may actually show a positive EPS. I'm hoping, anyway. Earlier (Nov 98), they had projected gas prices in winter around US$3.00, but it never came to fruition. Perhaps with increasing oil and gas prices, things could turn around.
The negatives:
I was surprised and disappointed to see that Richard has resigned as Exec VP, along with Randy Marshall as VP (Operations, Production and Engineering), and a director who joined in February. When key management personnel leave, I see it as a bad sign. It just "feels" bad. But what do I know? It may be that things have been slow and these individuals need more challenging things to fill their days. Many of them are involved in several companies. Perhaps it's also more economically efficient to reduce payroll and lower operating expenses.
Randy Marshall is also involved with FST, although on calling his number, the message says he's on vacation until June 1 (must be nice!). On trying to call Richard's number, I get a message that "the number has been temporarily disconnected." Calling the fax, I'm told the number is out of service.
Also, I notice the phone numbers for Dynamix have changed. I wonder if this means anything. Tried calling Robert Bateman at the number on the NR (403-243-8777), but ring, ring, ring, no answer. I'll try again Monday. Trying to determine if Dynamix has relocated or what's going on.
That's it for now. I've thrown my sell order on the board at 0.20, hoping that one day it'll hit and I'll break even. Who knows... maybe if Dynamix decides to go into the hi-tech or internet sector, it'll fly again! :)
Ben |
