I have to agree more with chicken1little2012.
When I first brought this stock, mangt. said it has a PV90M. They then sold it for what I figure was around 24M.
Then they a brought a property in Kansas that needed to be developed, The company's G&A was MORE than the REVENUE it generated!! I'm not kidding!!! Check the Financial statements
Then they delayed the drilling of the WY well so long that they had to get an extension and then didn't have money to test it.
When this was happening I could believe that things could get so screwed up. I thought that mangt experience (also the large pay) meant that they had to be competent. I was wrong!!
My Plan would have sold half or all of the LA propertries ( hopefully at a higher price). Then use those funds to develop the WY properties plus cut the G&A costs. I would NOT have purchased the KS property.
You might say this is Monday morning quarterbacking but as I said before I couldn't believe it when it was happening,
Step 3 would be to re-register with SEC and clean up the balance sheet.
To get investors interested in the company, it must re-register with the SEC which would include audited financial statements. This helps company gain the confidence with the investing public of its legitimacy.
The second part is to clean up the balance sheet. The company needs to get rid of the convertible notes payable. Investors' want to know that the company has a fixed amount of outstanding shares so it will not be unnecessarily dilutive.
The company needs just common shares no shares(preferred, etc) that confer special rights to other shareholders. That help develop confidence in the management that they are looking out for all of its shareholders equally.
Maybe the plan is to sell a limited amount . Once a certain level is achived it will be ended.
Could be a way to raise cash quickly!
It will be interesting to see what the properties go for in bankruptcy. I think the properties are more valuable than the debt but with so many other opportunties around who knows what they will get.
In the last year, the management paid themselves well for not saving the company. The company has a field in Kansas plus a completed but not tested well on 9,000 acres in WY.
Will be interest if Mangt. or friends bid on these properties.
It is possible that APGI could supply units to capture the gas for resale. The margins might not be as good but still profitable!
I'm no expert on this new project but from my understanding the oil companies only provide the byproducts from their oil production to APGI for processing. There is no financial investment being made by these companies. They could share in the revenue thus it being financially beneficial for them.
There will always be oil wells that are remote or stranded. They will not be affected by the new spending. This reality justifies the growing need for APGI solutions.
The customer DOES NOT have to buy the equipment!!! The company supplies it for the NG!
The answer is Zero. But there are many wells that will not be closed down for various reasons. When they do the equipment ,which is on trailers, will be moved.
Read the press releases!
One of the purposes of capturing the NG was to fuel the trucks moving the oil! Thus saving on the cost of diesel fuel.
P.S. new wells are being completed every day. So there will be a demand for Trucks to move the oil and equipment to capture the NG.
My concern is the convertible notes holders aren't selling the stock pushing their price lower to convert so they really will not have to replace the shares they sold.
Example, maybe they convert 80% the the closing share price over 3,10 or 20 days. So all they want is a lower closing price in which to replace the shares they sold short.
I don't know the terms of the notes so this is just a educated guess.
If that is what is happening.
The best way to achive the goal of being the "Netflix of 4k" is to follow the Netflix model.
So the first step is to reverse the stock 1,000:1. Most investors think a sub penny stock is either a scam or bankrupt. Most investors and/or funds(mutual, etc) are not legally allowed to purchase stocks at sub-penny prices. Thus the company has eliminated a large group that could get behind the stock. If I remember correctly Netflix didn't trade publicly as sub penny stock so neither should NTEK if the wants to model Netflix success story.
Step two is to change the company name to UltraFlix and/or either spin off UltraFlix (with the 4k assets) or spinoff or sell the other divisions.
Investors like "clean companies" and management could concentrate on developing 4k business.
Maybe the company could spin off UltraFlix by giving shareholders one share of Ultraflix for every 1,000 shares of NTEK. That would solve two issues in one move.
First, the company debt is less than what houses sell for in Silcon Valley. I would hope they could raise that much money.
Second, if the business plan is sound wouldn't Mr Foley rather own 10% of a company worth 100 of millions of dollar or 50% of a 10 million company.
plus, if he would complete step 3, investors might get the stock price up where selling new shares would not be too dilutive.