Whomever bats cleanup will pick up what could have been a [going concern] opportunity. The current management has left very little wiggle room / planning, for a move that would turn this around........Number crunching indicates a still outstanding holding, but not under this regime....imho
Look if the drill program would have been successful meaning the hockey stick then your #'s would be in play. But it was not, so we are a company with high debt no cash and with few options. hard to get a great deal our only hope is we have more than 1 bidder.
I agree with you “Angler”. As you said you are using a “VERY conservative” estimate even with any potential buyer assuming the current debt. Had this situation been in this country some deal would have probably already been done but since it’s in China… I feel the Chinese have been the ones holding this up while hoping FEEC will go BK so they get all our “heavy lifting” for nothing.
Some folks believe getting a dime would be acceptable. Dozens of pro athletes make close to 30 million a year. To accept forty million dollars for a 2 billion dollar asset is just ridiculous in my opinion. To be honest I would rather they go bankrupt than take such a paltry amount.
Ok- So I like to run the numbers, personally, just to try and get things relatively close. There are several things for consideration. First we all know that with the independent calculations, we have an asset valued at about 2.1 Billion. According to yahoo finance, which we all know isn't exactly accurate, we owe around 93 million. I'd say its fair to round that up to about 110 million ( 60 million for the drilling program last year, plus a few extra million from recent notes. Now, forgetting the "cash on hand" and any revenue, we have an outstanding amount of shares at around 400 million conservatively. Keeping things simple. Let's say that we take the value proposed at 2 Billion- the debt of 120 million. That equals 1.8 Billion, right. now lets say that they need to do another drilling program to get things up and running, by another 300 million, to properly get this gig going. That means we're now down to around 1.5 Billion...conservatively... We have around 400 miilion outstanding right- that would mean the deal should be worth around $3.75 per share. Well we all know how far we are from that. So, let's discount it another 50% to around $ 1.80 or so. Can anyone explain to me why we are all the way down here at .035 or so? What am I leaving out? Keep in mind that these numbers are VERY conservative. We all know that they are getting much higher prices than this. And that they do have some revenue. And that there are contracts in place that provide for higher amounts of revenue and production, as time goes on. So- this calculation including shares, prices under contract, debt, and additional amounts needed to further develop, shouldn't be too far off. Plus that 50% discount is in my mind fairly ridiculous.... Maybe some of a discount, but NOT that deep. This deal should at a minimum, produce for all shareholders, in my humble opinion, around $ 1.50.... I welcome additional comments, numbers and calculations...
I think investors will be disappointed with the offer we receive. We do have power if we combine our shares informally- pledge or formally LLC I'm curious what investors would consider a fair deal. Mine would be anything over .15 cents which is much lower than I was expecting. Mike has not created much value from the last drilling program and that costed us.
To the question is who at this point in their right mind would loan them any money ??? I don't think even "loan sharks" would give them a dime. Curiouser and curiouser....
Besides creating more debt, just be done with it!!!!!!! what kind of deal could they be working on? They know, if they can not make a deal it's over...... They are just trying to salvage something... Glta
I don't doubt that they are open. However, when the pps was higher several years ago when I last went by, the office staffing was minimal, with little noticeable activity going on (phones not ringing, nobody coming in/out, no meetings goiing on, and no typical office noise. There were cardboard boxes stacked in the halls, and the office had a skeletal feel to it. In some kind of jesting, over the years I've made comments about the kind of candy they had in candy bowls (ie: the variety and quality has seemed to decrease iover time) as some indicator of how healthy or optimistic the office ambiance seemed. Bottom line: the only thing I know is that they are not wasting money in the furnishings of the HQ.
Well Pete, that would be one more than we've ever seen here and seems unlikely anyone would want to bankroll another one to give it a shot. Shame.
Yep, I do. Before I retired in 2013, I worked within a mile of the corporate HQ and would drop by there occasionally to take a look-see. I've been out of the stock for probably three years. The last time I almost got back into the stock, I dropped by HQ -- it looked like a ghost town. FEEC certainly wasn't waisting any money on flambouyant office furnishings and high staffing. If I happen to be in that area in the next week or so, I'll drop by HQ to see if there is any pulse going on.
What's tough is we are probably one well executed drilling season away from reaching the tipping point. And like you point out the Chinese will get the benefit
So much for the “tipping point”. Except for the 22d well doesn’t look like any of the individual wells (group or clusters) have performed as anticipated. IN my opinion production has always been the “key” for FEEC success. Just didn’t happen. Although FEEC has “proven” reserves exist it has also proven it is very difficult (for us anyway) to get it out of the ground.
Looks like the Chinese will win this one. We have done the “heavy lifting” and one of their companies will bring this project to fruition… which I speculate was their intention from the beginning. All they had to do was create bureaucratic “red” tape and wait for FEEC to go BK. Shouldn’t be much longer when that occurs.
Latest press release says the company is still in a “blackout” period…. Seems more like a “knockout” period.
Anyone want to guess as to what management’s excuses will be when the “chit” finally hits the proverbial fan ??
At the very least I am thinking it is past the time to contact the board of directors to demand McE's dismissal. I posted a message to this point last June and nothing has changed since then. It is unacceptable what McE is doing. Nothing really as come of the drilling program other to confirm that gas is there and some of it is managing to get into the pipeline. We have had no guidance about this since last year. McE also was touting that FEEC was in discussions with partners or the possible sale of FEEC....last June I believe. Northing has come of any of these purported discussions where I suspect more was made about discussing their golf swings than about coal bed methane. Suffice it say that nothing has been stated to indicate any substance to these discussions. Then McE disappears as a face to FEEC and has nothing to say at all. It appears elsewhere that the drilling has stopped some time ago and who knows where the money is going. The only reason it seems to me that the lenders are letting FEEC keep kicking the can down the road is that it gives them the illusion that they might be repaid some time later. Doesn't FEEC have a Chinese partner? One would think that this partner would want FEEC to remain in SEC compliance and I doubt that a lot of money is required to file the necessary forms. It seems ridiculous to me that FEEC cannot file because they cannot find the money. I think McE needs to be ousted and who knows...maybe ask the former head of CHK if he wants to take on a charity case? 9 times FEEC has kicked the financial can down the road. What is all of this about if now FEEC cannot even get its SEC filings in order?