When I do not hear good economic news directly from the company, it means things are not
going well. That is why the stock price goes down. 4 wells are not enough to run the company.
Some thing has to develop to produce more gas to sell. This management is not forthright.
The roughly 20% interest at Kokopelli you speak of is not Dejours only production . Add another similar well at South Rangely with about 30% interest and 3 more oil wells and 3 more gas wells at Woodrush,with about 75% interest .
The idea of Dejour was never to be a dividend paying production company ,instead the focus has always been to prove the viability of undeveloped assets ,which hold enormous value. Even outside majority stakes in a very few wells does nothing to upset the plan of developing reserves .PV-10 to PV-50 and beyond.That is the value in Dejour . Reserves and nothing else.
.The SECO deal would have destroyed the value play in the company ,in my opinion.The share price goes down because investors do not comprehend why the deal fell apart. .The realization that value is actually safely tucked away for another development try, has not set in to the investor sentiment....yet.
The SECO deal was also about Dejour moving into a US oil play was it not ? Why would DEJ want to get into an Oil play. The street knows the answer. Return on investment is all that matters and that risk is to high today for NG. COG has a breakeven cost in the Marcellus of $1.20 If you were a fund manager where would you invest money ? The SECO deal was a chance to move forward even if you lost 85% today. PGM brings up a good point about the last CC when they came out two weeks after for $4.7 million equity offering. If you add the $3.5 million loan on all of CO. Bang you have money for 4 wells? If it's all about Reserves who cares if NG hits $2. Everyone knew that price was to low. The only thing that is safely tucked away is the PP, options, warrants total cash raised from years 2010 to EOY 2012 which comes to $14,944,928. Good luck with this.