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Houston American Energy Corp. Message Board

cropduster08 40 posts  |  Last Activity: Jan 30, 2016 10:37 PM Member since: Feb 7, 2006
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  • Reply to

    The Future

    by merovingian123 Jan 24, 2016 11:29 PM
    cropduster08 cropduster08 Jan 30, 2016 10:37 PM Flag

    Tim, you left one thing out of your analysis. You said $30 oil crushes Russia and ISIS. Agreed. But $30 oil also decimates the oil and gas industry in the United States and really hurts the economy in Houston and in all of Texas for that matter. I think we need a balance. $60 a barrel would work for me.

    Concerning a new administration, the current one has done nothing but mess things up and alienate our friends and encourage our enemies. A new administration has no way to go but up since we are at the bottom of the trash pile at the moment. Just my opinion.

    Have a great February and stay warm up there in the great state of New York.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    The Future

    by merovingian123 Jan 24, 2016 11:29 PM
    cropduster08 cropduster08 Jan 28, 2016 12:08 PM Flag

    MD, you are exactly right. It was 77 and 64 "thousand" shares and not "million" shares. I made a mistake. Good catch on your part. It shows you are reading and thinking. I like that.

    But my point remains the same. Daily volume has been exceeding average volume for some time now, indicating to me that someone is buying, especially since the share price has remained fairly stable at around 18 cents, plus or minus.

    Having said that, watch us take a dip now so someone can get some more shares on the cheap.

    Have a good weekend coming up.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    The Future

    by merovingian123 Jan 24, 2016 11:29 PM
    cropduster08 cropduster08 Jan 27, 2016 4:29 PM Flag

    Hi Uli. Almost everyday now the volume traded is higher than the average volume for the last 3 months and the share price is remaining fairly stable at around 18 cents. For example, today the volume was 77 million and the average was 64 million shares traded. My conclusion is that someone must be buying at this level. Otherwise the share price would be dropping along with most of the other oil and gas companies that are having trouble with oil at $30. What exactly this means is hard to tell, but I am going to take it as a positive.

    I'm in Houston this week and I heard on the news last week that the Texas economy is in the dumpster due to low oil prices. That is probably true, especially here in Houston. However, I will say that folks around here are somewhat used to the boom and bust nature of the oil business. They are pretty tough. It may be bust this year, and probably is, but give things a couple of years, and get a new administration on board, and things could boom again in Houston. It will probably will happen that way. Fortunes are made when things go bust, because the guy with foresight buys up things that appear to be worthless, or close to it. Then when things go back up he turns out to be the brilliant investor who stuck to his plan. I'm just rambling now, but you get my drift.

    Have a good one and we'll see you on the mountaintop.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Canacol

    by dmer999 Jan 22, 2016 5:59 PM
    cropduster08 cropduster08 Jan 24, 2016 2:14 PM Flag

    Josch, I agree with you that Dan Hughes, Jr. (the son) is probably the one who is actually running the show and not the father. Dan Hughes Jr. was 2 years behind me at Texas A&M, even though I did not know him personally. While I ended up trotting the globe and learning the army, he learned the oil and gas business under his father's guidance. In hindsight, maybe I should have gone into the oil and gas business under my uncle (now deceased), but, I loved the army and I love it now. Without the U.S Army and the other services we would not have our freedom today. But I digress :)

    You make a good point about Hupecol's history of monetizing assets. Could be that they want to do the same thing with Serrania and their remaining Colombian assets. However, I still would not count on them drilling right away. How many years now have we been hearing the same thing? About six, I think. Plus, right now is not the time to sell any assets (monetize them) unless you are forced into it. I still think that Hupecol will wait to drill until we get a sustained uptrend in the price of oil AND they conclude that they can monetize Serrania and their other Colombian assets for a price that seems fair, considering current market conditions at the time of the sale. So my guess is still that they will drill and attempt to prove out the field when oil gets to $50, but this is just a guess.

    By the way, lest anyone gets the wrong idea, I am still very positive on HUSA and see $1 with an accretive merger, $2 will drilling in Serrania, and $5 with a producing field. But we are probably talking years, not months. So there is plenty of time to do other things while we wait on HUSA to pop.

    Good luck. And it is amazing how HUSA has held 18 cents during the market correction since the first of the years. Somebody is buying, no doubt about it.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Canacol

    by dmer999 Jan 22, 2016 5:59 PM
    cropduster08 cropduster08 Jan 23, 2016 6:16 PM Flag

    "Since you seems" was a typo, obviously. It should read, "Since you seem," for what its worth.

    Sentiment: Strong Buy

  • cropduster08 cropduster08 Jan 23, 2016 6:09 PM Flag

    TR, sorry you are upset. Get over it and try to be objective now. If HUSA was the second worst investment in your life I'm here to tell you that Dynegy was the absolute worst investment in my life, even though I now look back on it as one hell of a ride. I made a fortune on it and then lost a fortune on it. How stupid was that? Of course, if Dynegy had not gone down I would have been viewed as brilliant. You see what I am saying? You make the bed and you sleep in it.

    Good luck with your other investments,

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Canacol

    by dmer999 Jan 22, 2016 5:59 PM
    cropduster08 cropduster08 Jan 23, 2016 6:01 PM Flag

    Hi Josch. Since you seems to have an inside track on what Hupecol is likely to do, here is a little something I wrote last summer, or maybe it was a couple of summers ago:

    "I think with HUSA and Mr. Terwilliger it really is about contacts and about being in the right place at the right time and having the right kind of luck. This is why I keep harping on Hupecol telling HUSA that it is going to drill. Hupecol's parent company is the Dan A. Hughes Company out of Beeville, Texas, which is owned by Mr. Hughes, Sr., A&M class of '51, I think it was. Mr. Hughes, Jr., A&M class of '80, is vice-president of Hupecol. I have no doubt that Mr. Terwilliger knows one or both of the Hughes'. This is why when Hupecol tells HUSA that it is going to drill, I tend to believe it is true."

    Hupecol is going to do what seems right for Hupecol and not necessarily for HUSA. To really know what is likely, one would have to get inside Mr. Hughes' head at this point. I would just warn not to bet the farm on Hupecol drilling right away just because we want them to. It will be about what Mr. Hughes thinks will help Hupecol in this tough environment and how much risk he wants to take. My gut tells me he will drill when an uptrend in the price of oil has been established and a potential field can be more than marginally profitable. If you want a number, my guess would be that drilling starts at $50 a barrel.

    Concerning Canacol, there is no evidence that Serrania has any kind of priority over at Canacol at the moment. As I said, drilling in Serrania is not even mentioned in their guidance. I am sure they would take it if it came after a drilling decision by Hupecol, but, again, I wouldn't bet the farm on it at this point.

    Some folks may not like it, but the best thing we have going right now is a potential accretive merger and/or acquisition by HUSA. Look back at what Mr. Boylan said at the last shareholders meeting. He made an accretive merger more of a priority than drilling.

    C

    Sentiment: Strong Buy

  • cropduster08 cropduster08 Jan 18, 2016 10:15 AM Flag

    Tim, I agree with you about execution. I believe that HUSA is doing its best to execute right now. First point of execution - a merger or acquisition that takes advantage of the low price of oil and the 42 small oil companies that have gone bankrupt. Keep in mind that HUSA is debt free and it does have a cash flow, even though it is not enough to cover expenses. I also agree with you that HUSA has a burn rate on its remaining cash. That is partly why we saw the recent registration statement - so HUSA can raise more cash through dilution, if necessary. And it will be necessary.

    Second, I don't think the SEC is watching the tiny little HUSA that they stepped on and squashed. The favorable settlement in the end showed the SEC realized the error of its ways, at least in my opinion. My take is that HUSA is not on the SEC's radar screen. They have bigger fish to fry.

    Who are the new group of investors, you ask. Could be anybody that can identify a golden opportunity when they see one. Obviously you are not in that group. What do you think is happening to these 42 bankrupt small oil companies? They will be restructured and/or their assets will be sold to the highest bidder - companies like HUSA who are debt free and have access to cash.

    Anyway, all we can do now is wait on execution for M&A activity or drilling in Serrania. By the way, you mentioned Trump. I know Obama was your man. Enough said, because I think you are a good guy.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Lots of frustration, but what if....?

    by jsch0121 Jan 1, 2016 10:41 AM
    cropduster08 cropduster08 Jan 15, 2016 9:33 PM Flag

    Hey Tim. Good to see you posting again. I was afraid we had lost you. You definitely bring something to this board and I hope you keep posting, even if I disagree with a lot of what you are saying.

    A few points in response. First, M&A can take many forms. The most likely for HUSA is a three-way equity merger where the third party is an investor with money to put into the new combined company. Equity will be added up, taking into account everybody's debt load (which is zero in the case of HUSA) and HUSA shares will be issued accordingly. What is so hard to understand about that?

    Second most likely is an acquisition by HUSA of selected assets for its domestic program. When oil hits $20 a barrel or lower it shouldn't be hard at all to buy assets. Again, it is all about equity. HUSA will assume some debt, most likely, along with its selected assets. Again easy. A great portion of the debt associated with the selected assets will be written off by the banks in order to get HUSA to assume the rest. We'll see what Mr. Boylan comes up with.

    You are wrong about Mr. Terwilliger steering the share price to 17 cents. Why in the world would he do that as the largest shareholder. I'm sure he feels close to being broke at this level, like the rest of us.

    HUSA has proven it can get funds when needed, so there will be a long term for this company. In fact, 5 years from now I predict it will be one of the surviving little oil and gas companies, primarily because it was debt free when oil had its historic crash. I heard on the radio that someone famous once said that oil fortunes are made during the downturns. I think this will be true for HUSA.

    On insider trading, I think there is a big difference between actual insider trading and profiting on it and a company buying back its own shares. There are lots of companies buying back their own shares right now. I don't think a share buyback program is illegal.

    By the way, did you get a distribution?

    Cheers,

    C

    Sentiment: Strong Buy

  • Reply to

    Swift Energy

    by cropduster08 Jan 10, 2016 8:02 PM
    cropduster08 cropduster08 Jan 11, 2016 9:34 PM Flag

    Josch, I suppose you could be right, and I hope you are right, but I seriously doubt drilling is going to take place in 30-60 days. How many years now has HUSA been telling investors that Hupecol is saying drilling will start this year? If you go back and look at the quarterly and annual reports, I think it started around 2009. If it hasn't happened in 6 years, I have trouble believing it will happen in 60 days just because Hupecol, Canacol, and HUSA want to prove out the field. Last I checked, drilling in Serrania is not even mentioned in Canacol's guidance, but it is listed on their inventory of properties.

    I think timing will drive drilling, with depletion considerations and the price of oil weighing heavily. New wells tend to deplete after the first 2 years, so why drill a well now if you are only going to get $32 a barrel, when you can wait 6 months or a year and likely get double that. Plus, at $32 a barrel, what kind of profit margin will they have? It won't be much. Having said all of that, you could be right and they might want to go ahead and take advantage of depressed drilling costs and get those first 2 exploratory wells done. If they find oil, HUSA will go to $2 minimum, in my opinion. Almost nobody is drilling right now, that is why I think it is more likely that they will start drilling when we get a confirmed uptrend in the price of oil. Right now everybody seems to be looking for something in the $20's as the free fall continues.

    I think an accretive merger will happen first, then drilling in Serrania. However, in any order, HUSA could end up being the deal of the decade at today's 17 cents. 10 baggers have happened before with other companies in a lot worse shape than HUSA. Why not with HUSA? Seems like the perfect storm to me.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Swift Energy

    by cropduster08 Jan 10, 2016 8:02 PM
    cropduster08 cropduster08 Jan 11, 2016 5:36 PM Flag

    Josch, you make a good point about laying the ground work for raising money in the future. In fact, after looking at the registration statement again just now, I have changed my mind about whether they are selling shares on the open market, even though they are authorized to do that in the registration statement. I don't think they are doing that now after all. I think it is likely that this registration statement will be the basis for future "placements" to interested investors, as you alluded to.

    Consider this from the registration statement:

    "USE OF PROCEEDS

    Except as described in any prospectus supplement and any free writing prospectus in connection with a specific offering, we currently intend to use the net proceeds from the sale of the securities offered under this prospectus for general corporate purposes, including working capital.

    When we offer a particular series of securities, we will describe the intended use of the net proceeds from that offering in a prospectus supplement."

    I still don't think we are going to see drilling at this level, but I do think it will happen when the price of oil establishes an uptrend.

    Good discussion. I'm open to being persuaded to change my opinion if the argument is strong enough.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Swift Energy

    by cropduster08 Jan 10, 2016 8:02 PM
    cropduster08 cropduster08 Jan 11, 2016 1:01 PM Flag

    Lefty, I am stating that "I think" HUSA is now selling shares or that it will be soon. Read the registration statement from December 18th and then look at the Notice of Effectiveness from January 7th on the SEC website. Go to company filings for HUSA. We know that HUSA is now authorized to raise up to $12 million through a variety of methods, which includes selling shares. My conclusion is that they have started selling shares to raise needed cash, but I could be wrong. Read the registration statement and see what you think.

    HUSA has 150 million shares authorized and only 52 million outstanding. My take is that they will sell shares or "place" shares as needed to raise needed cash for the short term. They are limited to raising only about $3 million per calendar year as I recall under the registration statement.

    And yes, they are also buying shares back on the open market under their recently announced share buyback program. It is unknown whether they have actually bought any shares back yet, but my conclusion is that they probably have.

    As I said before, we have a situation now with HUSA where they have the ability to buy shares back at the same time they are selling shares to raise cash. Only Mr. Boylan and crew know exactly why they are doing this. I have concluded that it has something to do with stabilizing the share prices and/or with some type or merger or acquisition activity. This would be a great question for management at the next shareholders meeting in June.

    I know Josch has some thought on this concerning HUSA buying now at the current depressed share price and and selling later after the share price has gone up. Maybe. I want to see it happen first.

    My take is that HUSA is willing to accept a little dilution now in order to remain a debt free company in order to get it to the point where it can do an accretive merger or acquisition and/or drill in Serrania.

    Cropduster

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Swift Energy

    by cropduster08 Jan 10, 2016 8:02 PM
    cropduster08 cropduster08 Jan 11, 2016 10:36 AM Flag

    Hi Mitchell. Yes, we had a very nice holiday, mainly Christmas. Worked on New Years, even though we did watch the fireworks. With Dad going on 93 and Mom going on 89, we never know when it might be our last Christmas together. The Lord has really blessed my parents, no doubt about it. The wife and I are a different story, however :) Hope you had a great holiday season with your family also.

    My take on your question is that yes, HUSA could be a takeover target, but somehow I doubt it at this point. Having said that, I am sure there are some investors out there that would buy the whole company at 20 cents if they thought they could. I would if I could, but I can't. HUSA is debt free and has assets that are valuable, for sure, but I think the cash flow is fairly negative at the moment. In other words, revenue from domestic operations is not sufficient to cover operating expenses.

    The way HUSA is making up for that at the moment is through limited dilution. In other words, they are selling shares to cover expenses. I think this actually started last Thursday, January 7th, when they filed an effective order with the SEC. Check out the SEC filings. As far as who might be looking at HUSA, I would start off with Mr. Terwilliger and/or one of his contacts in the oil and gas industry. However, why would Mr. Terwilliger want to sell the company at 20 cents when he could get $1 with an accretive merger by Mr. Boylan, $2 with commencement of drilling in Colombia, or maybe $3 or more with an eventual field on Serrania?

    Haven't heard anything more about drilling in Colombia other than access roads were being built. In any event, my take is that it will be drilled when the time is right, but the time is not right at the moment with oil sliding down from $32. I think they will drill once an upside trend has been established later this year or maybe next year. In the meantime, I am counting on Mr. Boylan to get us an accretive merger or acquisition.

    Take care.

    Sentiment: Strong Buy

  • cropduster08 by cropduster08 Jan 10, 2016 8:02 PM Flag

    Now we have Swift Energy, another Houston oil and gas company, filing for bankruptcy. I believe they filed at the beginning of last week. Does anyone notice a trend here? There is a lot of pain taking place in Houston nowadays with the crashing of oil prices. I know. I'm there just about every week. I really feel sorry for these folks who are losing so much they have worked so hard for. Been there, done that. I'm there now, for that matter. In any event, none of these companies going bankrupt, or thinking about going bankrupt, are debt free. They are all heavily debt laden and cannot make their debt payments along with taking care of all their other expenses. This situation puts a debt free company like HUSA in the driver's seat for mergers and acquisitions.

    Swift is too big for HUSA, in my opinion, for a merger to be effective. However, Swift has stated that they will begin selling assets to raise cash. I think this may be where HUSA could really come out with its long desired domestic program to supplement its international program in Colombia.

    HUSA could merge with a smaller distressed oil and gas company, or it could acquire a basket of assets from one of the bigger distressed oil and gas companies. They key will be for the acquired monthly revenues to exceed any monthly payments on acquired debt. I doubt Mr. Boylan is going to do anything that is not accretive to HUSA. The second key, in my opinion, will be the timing. For example, HUSA may want to hold off on pulling the trigger with oil at $33 if it is going to $20, for example. We have to make sure revenues exceed expenses now and over the next year or two. We don't want to just become another bankrupt little oil company.

    So our candidates now are assets from Saratoga, Yuma, and Swift. M&A can take many forms. I am sure there are many other candidates out there.

    Lefty, by the way, I agree that we should all try to get along. I'll try harder starting now.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Yuma Energy

    by cropduster08 Jan 6, 2016 11:23 AM
    cropduster08 cropduster08 Jan 7, 2016 10:23 AM Flag

    DD, again you got a chuckle out of me. You seems to be good at that.

    I have not become a legend in my own mind, because I have lost enough over the years to keep me humble. I think the big difference between me and you is that I can write, and I enjoy writing, and you can not. Not a hit on you, but you can't seem to put more than one or two sentences down on paper. That doesn't mean you are not capable at certain things, you are just no good at writing. We used to call it technical writing, which I have have training in. I don't know what they call it nowadays.

    Anyway, if you are so experienced at M&A, please feel free to break things down for us and tell us why or why not a certain merger or acquisition might be possible. You are on record as saying YUMA is not likely to happen. OK, I accept your opinion on that, even though I disagree. Can you do a little research and post your findings. I would be very interested to see what you think might work for HUSA.

    Have a good one and again nothing personal, but if you dish it out to someone else you need to be prepared to take it also. By the way, I appreciate the fact you keep it clean. You have class in that regard.

    I'll be off the net for a few days, maybe a few weeks.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Yuma Energy

    by cropduster08 Jan 6, 2016 11:23 AM
    cropduster08 cropduster08 Jan 6, 2016 10:13 PM Flag

    Hi Uli. Thanks for the kind words. I was just watching a report on TV about what is going on in Cologne.

    I had forgotten about PLUG. I didn't buy any of it either. I have learned not to chase stocks, for the most part, because I am usually late to the party. Plus, you can never really be sure when the party is going to start. What I like about HUSA is that there is a great probability that something is going to happen eventually. I'm satisfied to have a certain amount of money sitting right here for when it does happen.

    Concerning SARAQ, I would definitely not buy SARAQ as it is in bankruptcy proceedings (for the second time). Shareholders have already been wiped out. If you hold HUSA, you should benefit as a shareholder of HUSA if and when HUSA acquires some or all of SARAQ's assets. I assume Mr. Boylan is not going to do any deal that is not accretive to HUSA, as he said at the last shareholders meeting.

    Concerning YUMA, you could buy some of its shares if you think it will survive without bankruptcy and recover when oil eventually goes back up. It is like a lottery ticket and I don't play the lottery because there is no future in it. Too much like gambling. My take is that YUMA is planning to cash out in a big way with asset sales if it can not get the funding it needs right now. If pressure gets too severe on management, it may just pull the plug and go bankrupt. In any event, I would only buy YUMA at this level of 25 cents as a purely speculative play. At this point, i think your money is safer in HUSA.

    HUSA will go up if we get an accretive deal, whether it is SARAQ, YUMA, or someone else. As I said, SARAQ shareholders have already been wiped and YUMA shareholders might eventually benefit is they get some HUSA shares for their YUMA shares in an equity merger.

    In any event, I am not recommending the purchase of any shares of any stock.

    Take care and stay warm.

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Yuma Energy

    by cropduster08 Jan 6, 2016 11:23 AM
    cropduster08 cropduster08 Jan 6, 2016 9:44 PM Flag

    OK, DD, since you find my ideas comical, I'll respond. I find my ideas comical sometimes also, but at least I have ideas. Your problem is that you do not understand the art of the deal or anything much about mergers and acquisitions. I can't give you a whole course right here, but you might learn something by taking a hard look at what LEI just did. Maybe it will work for them, maybe it won't, but you have to give them credit for understanding how these things work and giving it a shot.

    I understand YUMA has problems right now. That is what makes them a good merger/acquisition candidate for someone like HUSA in a way that is accretive. You do understand what accretive means, right? It simply means that the deal costs the acquiring company less than what the new revenues will bring in. Comical maybe, but somehow I don't think Mr. Schnur over at LEI is laughing right now, as an example. He is probably sweating bullets due to all the pressure he is going to be under. I hope he didn't pull the trigger too soon.

    There are many combinations of what could happen. Maybe YUMA declares bankruptcy and HUSA buys what is left. A big player will be the creditors over at YUMA and what they end up thinking is a good deal for them. I could write a book on how to do this, but I'm afraid you still might not get it.

    In any event, I am not saying SARAQ or YUMA will be what HUSA ends up combining with, but the cat is out of the bag now with oil prices continuing to drop. HUSA is a debt free corporate platform at the moment and it a prime candidate for acquiring distressed assets, whether it is an entire company or just certain domestic assets of a bankrupt or near bankrupt company.

    No offense, but your comment about my ideas being comical got a chuckle out of me and it brought out my sarcastic side in response. I usually try to hide my sarcastic side, as it is unbecoming of a gentleman.

    Have a good evening,

    Cropduster

    Sentiment: Strong Buy

  • Reply to

    Yuma Energy

    by cropduster08 Jan 6, 2016 11:23 AM
    cropduster08 cropduster08 Jan 6, 2016 11:39 AM Flag

    Here is a little bit more on Mr. Jacobs going to YUMA, for your reading pleasure. Put together HUSA buying some or all of YUMA's assets (which are now for sale) with a third party silent investor and what do you come up with? It is something to think about. I bet Mr. Jacobs, Mr. Boylan, and the rest of the crew are looking at this very seriously. LEI has already shown us what is possible. Now HUSA will show us how to do it the smart way.

    "On December 15, 2015, Kirk F. Sprunger, Chief Financial Officer, Treasurer and Corporate Secretary of Yuma Energy, Inc. (the "Company") resigned from his positions with the Company to pursue other opportunities.

    In connection with Mr. Sprunger's resignation mentioned above, on December 15, 2015, James J. Jacobs was appointed as Chief Financial Officer, Treasurer and Corporate Secretary of the Company.

    Mr. Jacobs, age 38, served as Yuma's Vice President - Corporate and Business Development immediately prior to his appointment as Chief Financial Officer and has been with the Company since 2013. He has 14 years of experience in the financial services and energy sector. In 2001, Mr. Jacobs worked as an Energy Analyst at Duke Capital Partners. In 2003, Mr. Jacobs worked as a Vice President of Energy Investment Banking at Sanders Morris Harris where he participated in capital markets financing, mergers and acquisitions, corporate restructuring and private equity transactions for various sized energy companies. From 2006 through 2013, Mr. Jacobs was the Chief Financial Officer, Treasurer and Secretary at Houston America Energy Corp., where he was responsible for financial accounting and reporting for U.S. and Colombian operations, as well as capital raising activities. Mr. Jacobs graduated with a Master's Degree in Professional Accounting and a Bachelor of Business Administration from the University of Texas in 2001."

    Just having fun looking at the possibilities.

    Cropduster

    Sentiment: Strong Buy

  • cropduster08 by cropduster08 Jan 6, 2016 11:23 AM Flag

    Here is another strong possibility for a combination with HUSA - Yuma Energy in Houston.

    Two things caught my attention on this one. Number one is that Yuma Energy just published that it is going to need additional capital to cover its operating expenses OR that it is now in the market to be acquired. Hmmm. Very interesting. They apparently are open to a combination with another company to solve their cash flow problems.

    Then add number two, which probably caught my attention more than number one. Guess who the recently appointed Chief Financial Officer is for Yuma Energy? None other than our Mr. Jacobs, the previous CFO for HUSA. Just coincidence? Maybe. But these guys talk to each other and they are always wheeling and dealing.

    I would say there are now two candidates for combination with HUSA - number one is now YUMA, in my opinion, and number two is what is left of Saratoga.

    This is all very interesting to me and it gives us something to do while we are waiting on Hupecol to drill in Serrania.

    Cropduster

    Sentiment: Strong Buy

  • cropduster08 cropduster08 Jan 5, 2016 8:49 PM Flag

    With what cash, you ask, can HUSA use to make an acquisition and/or merger. None really. Cash is king, no doubt about it, but good credit is the next best thing.

    LEI was almost bankrupt and had defaulted on some of its payments, but now all of a sudden it is in the acquisition/growth business. How did that happen? Its called wheeling and dealing. At the moment Mr. Schnur of LEI is out in front of Mr. Boylan of HUSA by a country mile.

    The concept is simple. Acquire assets. Acquire debt. As long as your revenue from the assets is more than the cost of the debt you acquired, you are good to go with an accretive deal. This is what I think Mr. Boylan is working on, but Mr. Schnur is getting all the publicity at the moment. They had 7 million shares traded the other day, and their entire float is only about 200,000 shares, as I recall. Mr. Boylan needs to spark some interest in HUSA. We're waiting...

    But timing is critical. You have to act at the bottom or close to the bottom or you could find yourself in the toilet also.

    Cropduster

    Sentiment: Strong Buy

HUSA
0.18+0.01(+5.01%)Feb 5 3:59 PMEST