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Halcón Resources Corporatio Message Board

  • arnoldboils arnoldboils Dec 22, 2013 11:27 PM Flag

    The massive Fraud by Zoom bee.


    Yes Zoom bee cuts and pastes data from the ND . But they are false and misleading due to two main FACTORS.
    1. He uses gross productionn figures rather than net. HK does not own the land they drill on, they lease or rent it for drilling rights. As compensation to the owners, a certain dollar figure is paid for the lease, but there are additional clauses. One is that HK only gets a fractional WORKING INTEREST in the production. In the Bakken, the average is 76 percent. Then as further compensation, HK has agreed to make ROYALTY PAYMENTS on the sales of the oil etc. The average ROAYALTY PAYMENT HK pays to Bakken owner is 20 percent of revenue! Thix means that HK ultimately receives only about 60 cents of every dollar (NRI or net revenue interest) in the whole Bakken play on average. Using gross production figures overstates HK's beneficial interest.
    But that is not all,

    2. Zoom bee habitually quotes IP rates of production. This is misleading because all shale wells have high rates of depletion, meaning they produce less, and sometimes MUCH LESS oil etc as time goes on, and sometimes in relatively short times. This means that HK must drill a significant amount of new wells to just maintain existing production and even more to grow production. Zoom bee's figures CONSISTENTLY ignore this vitally important fact, and thus overstate actual net production..
    One also has to question why the so called oil people on the board, who should know this elementary material do NOTHING to correct these blatant and huge lies and errors on Zoom bee's part
    Want proof?
    several easy ways:
    one, go to Zoom bee's early posts before the 3rd quarter earnings release , and compare his data with what was ultimately released in the 3Q report
    Go to the presentations the company has made to the public
    Contact HK investor relations and verify what I have posted.

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    • Oh My God, Another STEW PIDASSO

      Sentiment: Buy

    • arnoldboils, you said, the production report data was a fraud " due to two main FACTORS.
      1. He uses gross productionn figures rather than net.
      2. Zoom bee habitually quotes IP rates of production. "

      hey sherlock , regarding your whole post factors, 1. and 2 . Gross production on a well, is how industry well data is reported. ( simple, period)
      Rarely will you get the working interests spelled out on individual acreage blocks inside an AMI

      So you whole post and even the premise of the post is mute.

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