deeprig1 -- That is a really great question. If these 2 companies in Tunis simply wait until SOQ defaults on the agreement, then SOQ loses essentially everything SOQ is worth as a company. And what will happen to the $15 million cash??? It will be used to pay SOQ salaries, retirement, 401K's etc etc. It will be gone. We will be shafted just as we have in the past IMHO. Hope I am wrong, but that is what looks like will happen.
Now, when does SOQ have to find a JV partner to take over the NA Zarat field and drilling obligations??? I guess I am wanting to know when our SOQ investments will be worthless, or gone.
I hope that is not what happens, but i sure would like to see SOQ give us some solid information on potential JV partners for the NA Zarat field and acreage. Good luck to anyone that can survive this ordeal.
The seeking alpha article suggested that the data/seismic information etc for the NA project has been seen, and that is should be a wanted/desired deal by some other O&G companies, but i sure would like to know who or something about these potential interested companies .... just some general information regarding the possible JV partners regarding small, larger, middle sized and/or where they may operate out of, etc etc, ... anything. Mercy, Gulp.
I agree that the Viking farmout looked like a desperation deal since SOQ could not find anyone else to join in on the JV for the Zarat field development and offshore NA acreage drilling commitments. Now that Viking is out of the picture do you think SOQ actually has anyone interested in drilling the acreage commitments and also developing the Zarat field.
How can you trust SOQ management when their Press releases made Viking sound like a top of the line operating company capable of fulfilling the farmout terms. So now that Viking is out of the deal how can we trust management in promoting whom ever they find to take over the farmout deal? This is just a pragmatic question and there are no "hate goggles" as you mentioned, just simply past history with SOQ being honest and reliable.
So, again do you believe they honestly have a viable company that will take the farmout deal. I have worked in the industry directly involved with farming out acreage to small companies and there are some really questionable companies that will sign up for a farmout JV deal in a heart beat, then no perform. I would like to feel better that SOQ actually has some viable industry respected companies lined up to and/or interested in taking the farmout deal. Regards.
The price of crude is dropping which is driving the share price of KOG down. There is no real $ risk with the down-spacing .... if they see interference that doesnt mean the wells they drilled are not going to be used. If they see a small amount of interference that will be good information they can use for the future ..... if there is a lot of interference, they can use the extra well bores to accelerate oil production, and pay out the wells faster, and they can also use the well bores for secondary recovery which is an entirely different and needed approach to all of the holdings that KOG has.
Keep in mind that they are drilling many more wells now in a denser spacing and these wells with higher reserves per unit were not counted in their economics 1-2 years ago and those economics without the denser spacing were very good. This is all extra icing on the Williston Cake. Again, this is not a do or die experiment ..... they need this information now and they need it later in the overall development of the acreage they hold. This is really exciting stuff as a petro-geologist. Regards.
This entire deal is crazy. They lose their Viking farmout deal, and the stock acts accordingly -- it drops. But then it moves up from 60 cents to 85 cents the same day (maybe the board wanted the farmout deal to not work if they had someone else in the wings to take the farmout deal.
Either the Board has something going on that we are not aware of (i.e. there is someone wanting to take over the farmout deal, or maybe SOQ wants to do the deal with the money from the sale of it WC acreage?). I would like to see who is doing the trading ... hope it is not SOQ insiders, or folks connected to them.
I did read an article yesterday/early today where the US is going to train spec ops teams of Libyans to fend off terrorist organizations. That would be a positive regarding safer environment to work in i assume.
Keep in mind that KOG is not just experimenting with the newest increased density drilling since they have information from other operators and they are using this data to fine tune their increased density drilling. Also, if there is some cross communication between well bores that is not a mute point since that data can be used for secondary recover since the well bores can be used to re-pressure the reservoir via gas and/or water drive to get more EUR per well.
The most recent Seeking Alpha increased density article for KOG's operations should help KOG price per share. For a small company KOG is doing an incredible job of making sure they are getting the most oil our of each drilling unit. KOG's approach to increased density drilling is second to none. These guys are really at the top of their game, and other companies are following KOG. I really respect how KOG is logically approaching the Bakken/Three forks density drilling. KOG should be admired by both small companies as well as the majors. KOG is the leader IMHO.
10-4 .. what did they do .... what a group of slack people. Now I am sure they will say they were spending all their time getting this WC sale together, but that doesnt cut it in terms of their work etc. Regards.
Deeprig1 -- Thanks for your input here. Since SOQ is being sliced up as it is, would you sell at this point if you had any shares remaining? I simply have a small position, and was going to see if this annoucement resulted in any real changes to what SOQ shares will be worth. I assume after this change takes place we are going to own shares of two different companies. After the deal I assume SOQ shares will represent essentially just the NA offshore farmout deal, and we will hold shares of Marquee which will essentially be the WC assets which is only about 4000BOE's? Does that sound correct. Again, thank you for your input. Regards.
Business as usual here at Sonde What do they do everyday? The only company I have ever seen that finds oil/gas and still ends up losing money in the deal.
WSJ just released a nice article (at 2;36PM EDT) regarding how Exxon doesnt have the biggest dividend, but it has the highest return on the capital it employs. "Its average return on invested capital over the past five years is 25.3%—well ahead that of its closest rival"
Meaning Exxon doesnt re-invest as many dollars, but on the dollars it does invest, they make the highest return on those dollars (25% return). They do this by rebuying their own stock which pushes up the earnings per share since there are less shares of stock out there. As per WSJ -- "With a little perspective, though, Exxon looks every bit the top dog."
Earnings should be interesting this quarter .... way higher crude prices which will help income from crude, but hurt downstream refining I assume. Regards/luck to all.
This step being behind Sonde is for sure a positive move. Also Libya has tankers lined up to take oil from their western fields once again which is a sign that they want to move forward with increasing their O&G production to previous production levels.
10-4 deep .... I have no idea what GN got out of the deal, but I hope his due is coming at some point.
Still a lot of money going in and out of SOQ .... would have been smart to buy low and sell at 10-20% gains over the past months. Not sure who is making SOQ go up and down 10-20% over and over again??? Regards.
This Bloomberg news article today may be why SOQ price has gone up. Regards
"Security issues aren’t deterring oil companies from working in Libya as the nation restores production at two fields, National Oil Corp. Chairman Nuri Berruien said."
I assume this movement up is due to the DOW going up triple digits today, but not sure. Does anyone have any viable ideas regarding the 20% price increase? Regards.