The market looks like a correction has begun and yet somebody pays 36 cents for COIL on Friday. You wouldn't have expected this stock to close in the green. I hope it was somebody who heard the story from our CFO in NYC and felt some urgency.
That would have been the perfect comment for Transier to make if that's his strategy. Say something about the elephant in the room!
I'll bet Mrs. Ebert will be a happier with Mr. Ebert when the stock is firmly supporting at $1.53 LOL. It's a 25% gain from $1.22 and not a bad return for new money.
Transier was his usual optimistic self in the presentation today with his patented "the worst is behind us now that all three production sources are hooked up" pitch. He'd like us to believe our only enemy now could be unpredictable weather events, but he did not address in his prepared remarks the production bottleneck of the Scott platform or how we might deal with the limitation. It was almost like he thought we didn't know about the issue or had forgotten about it because it was so trivial. NOT!
No razzle or dazzle today and perhaps less effective with the story than I have heard the CEO in the past. One of the bullet points on the 2014 "To Do" list is to raise money, so you know nobody will buy the stock until the dilution impact of a financing can be determined.
You are right about there being no liquidity in the stock If you buy in, you're in until Armen delivers a multi-well steam test. The failure of DOGGR in Sacramento to act on the permit application in a timely manner is an outrage.
The presentation at IPAA in NYC this morning must have interested somebody. Looking forward to hearing the replay tonight.
The answer is to listen to the presentation Schiller made today to the IPAA conference in NYC, view the slides and think about the opportunity to own EXXI under $22.50. I kick myself that I own this alot higher and don't have the dry powder to come in now because now is the time. The answer is to average down or initiate.
I doubt John Ebert would have taken the VP Finance job here last November had he not well acquainted himself with the cash flow situation. He had been analyzing it since August, 2013. Micro-caps like SARA pay predominantly with stock options since salary burden is critical and must be minimized. (Cooke and Clifford only make about $350K in salary)
From the 2013 10K comes the option grant to Ebert and other employees. Do you think Ebert gambled on an unrealistically high stock price that cash flow from PDP would not support?
"In addition, during 2013, we granted stock options purchase an aggregate of 225,000 shares of common stock to
employees, including options to purchase an aggregate of 90,000 shares granted to a newly hired officer. The options are
exercisable at prices ranging from $1.53 to $2.42 per share."
Unregistered Sale of Equity Securities
Item 3.02 Unregistered Sales of Equity Securities
On March 31, 2014, Citadel Exploration, Inc. (the "Company") closed on a $500,000 bridge loan from two individual investors. These notes have a 180 day term and bear interest of 10%. Additionally the investor's received 500,000 warrants to purchase the Company's stock at $1.00 per share for a term of two years.
No commissions were paid in connection with the issuance of the bridge loan.
On April 7th, 8th and 9th, Citadel will be hosting investors at breakfast roundtables at the annual OGIS (Oil and Gas Investor Symposia) presented by the IPAA (Independent Petroleum Association of America) in New York City. This event is attended by over 1,000 energy investors and affords Citadel the opportunity to update the investor community on its operations.
The company's most recent presentation, which will be used at the IPAA event, is available for public view on our website at www.citadelexploration.com.
Their March presentation suggests two impactful wells wells could be the subject of news in NYC. The Vastar State 1V (57% w.i.) is completing in the Wolfcamp E and the Emily Bell 1H (54% w.i.) is completing in the Wolfcamp A.
A third well began drilling March 5.
And Obama thought his health insurance website would work out of the chute too. It will be such a pleasure to send in my Franchise Tax Board return this year.
The CEO is just now getting into the field to learn he doesn't have enough gas lift to support the production he thinks he should have or the field supervision who should have been able to diagnose the problem?
Better late than never, I suppose, but shockingly bad performance at the top of SARA.
This is Yahoo Finance and these highly intelligent investors and commentators are posting from their offices at Starbucks where they bought a vente coffee eight hours ago, spread their laptops, yellow notepads and old newspapers across tables for four and blogged or otherwise talked to themselves ever since.
The audio replay has been added to the EXXI website from the Weil conference. I'll have to listen as Schiller's remarks didn't impress Weil's analyst, J. Bachmann, enough to cause him to put EXXI on his best post-conference ideas list.
We're in a dead zone until the March quarter results call, I suppose, and they're not expected to be good, but assuming the deal prospectus will be out by then we should hear more color and rationale for the deal.
You raise an interesting question. Do you put free cash flow behind the drill bit or do you buy back debt at 75 cents on the dollar? The important base case metric is that they drill only within cash flow when cost of debt is high and equity raise is not accretive. E & P guys consume capital.
They have been making fundamental progress here yet selling persists. How much stock is yet to go and can the board swing another below market deal to clear it?