Reading the 10K, we see Salas is moving the company west. After he signed a lease in Knoxville, I thought that was a contradiction to what he said at the annual meeting. However, now we read in the 10K
"... the Company entered into a month-to-month lease for office space in Knoxville, Tennessee.The payment on this lease is approximately $6,000 per month. On December 15, 2013, the Company entered into a 38 month lease (2 months free) for office space in Denver Colorado. The payment on this lease is approximately $2,700 per month and expires February 2017..." with payments going up annually to $3400.
Denver is better oil country than Knoxville and with another hire from that area, I "suspect" some prospective CEOs have been interviewed... who said, "clear up this Hoactzin situation and we'll talk again."
I would believe Salas would want to do that rather than paying for two offices, one of which is probably almost empty.
I read, and read again, your most illuminating reply and further explanation of the Mai wells and prospect. I am quite positive that Rod Tremblay should have you as a guest speaker in some of his classes...is it U. of Nebraska? You not only have the "book" facts but, more importantly, you know so much from actual experience in the oil patch. I am quite sure your " straight talk" would make many students better petroleum geologists!
p.s. You are correct: I see other companies making major moves in western Kansas. Let's trust Tengasco sees this and picks up some acreage.
Your recent post on Investor Village RE: the latest intent in Trego County has me a little confused. Your basic thought that the Mai previous drillings may well be worth further investigation. However, you write: "TGC filed three of their dry holes "confidential" which tells me that they thought that they may be on to something. " When I checked the well completion reports, all five Mai wells did have drill stem test results.The Mai 1 (Feb 2007) showed in the section "Recovery": 125 ft OCM 10% O 90% M 1.75 bbls and 362 ft OCM 15% 85% M 5.08 bbls. Do I understand correctly that this bbls indication is oil? For the Mai B1 (Sept 2011) the indications are 2.81 bbls and 3.16 bbls. They are lower figures on the other Mai wells.
I may be incorrect in the interpretations I have given about the above numbers but they are stated in the reports. Needless to say, I really appreciated your analysis and would welcome your further comment when you get a chance to review what I believe are the drill stem test results on all the Mai wells.
p.s. Isn't it great to be writing about oil wells and what Tengasco is doing in oil patch?
This intent is about 500 feet away from an expired Tengasco intent along the Rattlesnake Creek. It is well north of the three Mai wells that Tengasco drilled that were D & A. Going south there were a few other intents along the same creek that came up dry. This area is well north and a little east of the very productive Albers lease. Let's hope that Tremblay nails this one. GL!
The mm buys at .46. But he won't sell at .47 up to 475. Had orders in all day yesterday so even though he bought a pile at 46 would not sell at 47. Notice today he went from 46 bid to 47 bid with no sales before selling a few at 48.
Thought I wrote MCF as was in Co production report. Didn't you write production was low in Q4 because of the bad weather? At any rate I agree with you that there should be a lot more data before year end figures are projected.
The 10 K stated Tengasco may be free of Hoactzin and GOM activities "soon" several times. I suspect this is what may be keeping prospective CEO's from further discussion about being the next Tengasco CEO. Once cleared up, do we have a new CEO?
What I find quite, quite confusing, is the NON (?) reporting in the December 2013 KGS update of the new 2013 wells that came on line. Zerger A2 reported quite a few months ago but the production page shows only one Zerger A well and give NO indication of natural gas production which should have been reported for a few months? In fact, according to KGS, Tengasco has had two and still has only two wells, since 2008, producing natural gas.
I do not believe the Veverka new wells D3 and B6 are accounted for and neither is the Albers well B3.
So if all these came on line in the first quarter, we should have excellent numbers!
p.s.oilngasman, once before you mentioned there may be co-mingling of well production without indication of the wells involved. Could this be the case here?
looking more closely at the natural gas production, I would conclude that ($3.6 million) is a very low estimate of what the whole year may produce: condsider there are 22 reporting areas, five reported zero production,and there was low production of 2, 4, 7, 8 MCF in the lowest areas and 276 MCF in the highest area. What was most encouraging there was only two areas with water production which is keeping costs down really low.
So, dare I conclude, many of the areas were on production only a few days and some are getting ready for production. When all are on production I would "guess" that total production would be up. How far North of $3.6 mill, of course, depends on what the price of gas is.
I suspect Watson would want to avoid many questions he cannot answer right now. Some of which are evident in what I wrote above: Can he predict annual production? Yes. Should he, NO! Until he has a better handle of the entire fields and a few months of steady data.
He probably is also angling to get as many oil wells re-opened as soon as possible. With the price of oil what it is today, I think that is the way to go. He probably didn't anticipate gas being as profitable as it probably will be, so he welcomed the detour.
Bottom line: when Watson feels comfortable in telling the story and others see the future as clearly as he's able to convey it, there WILL BE a lot of interest and activity in the stock movement.
In brief, I suspect what others have said is probably true: there is (are) a big seller(s) still unloading. It may be connected with Montecito Ventures and/or Lowe R Atticus who, several months ago, indicated 8 million plus and 9 million plus with disposition in non-open market at $0 per share.
Those share may be going into other hands.
The stock does NOT have a following. My TDameritrade account shows only S&P has a report on the stock as of November 9, 2013. Yahoo says there is one analyst following the stock, with no esp or much other info. Nobody else follows the stock. Watson went to one IPAA conference several months ago but will not be in NY for the conference April 7-9.
The reason there was no CC after an excellent annual report was probably because ENRJ investor relations could not get a few analysts to commit to making a call-in.
Trading volume is really LOW. Some days there are no trades.
I'm patient. When I can, I pick up a few more shares. It is not easy to get them between .47-48.
I think Watson knows what he's doing and there will be favorable headlines and more activity in the stock. I suspect once he announces conference calls with earnings releases, activity and following of the stock will be increased.
PRODUCTION DATA REPORT -- for Operator Selection only
Operator: BLACK RAVEN ENERGY INC
Operator Code: 10203
PRODUCTION YEAR: 2014
Month Total Reported Completions Total Prod. Days
Jan 22 387 960 908 61 -9 40
At $4 per MCF that 908 comes to about $3.6 million.
Agree with you but would quickly add that MUCH has moved toward resolution with Hoactzin. Tengasco withholding almost a half million seems to be getting Hoactzin to move. Wished they would have been more specific on the real reason Tengasco had to put up $386,000. The NON-BONDING of that lease was known by Hoactzin for two years! How Macinturff did not know there was no bonding on that lease for two years even after Indem was notified in writing by the MMC is, to be, unbelievable. My concern here is that there is still a potential $700,000 on that lease in liabilities.
Am somewhat confused by the "final" payment to Hoactzin on the ten well program in Feb 2014. Any accountant out there who could tell me if that was really paid when Tengasco says they are withholding a half million from Hoactzin?
The office lease in Tn is on a month to month basis, so Tengasco can move to Kansas anytime.
Clearing up this one lease and appointing a CEO could give us a very good 1 Q report.
All in all, this 10K was not as bad as it could have been.
From the Tengasco 2010 10K: The Company became the operator of certain properties owned by Hoactzinin connection with the Management Agreement. The Company obtained from IndemCo, over time, bonds in the face amount of approximately $10.7 million for the purpose of covering plugging and abandonment obligations for operated properties located in federal offshore waters in favor of both the Minerals Management Service and certain private parties. In connection with the issuance of these bonds, the Company entered into a Payment and Indemnity Agreement with IndemCo that guarantees payment of any bonding liabilities incurred by IndemCo. Dolphin Direct Equity Partners, LP co-signed the Payment and Indemnity Agreement, thereby becoming jointly and severally liable with the Company for the obligations to IndemCo and also provided $6.5 million in collateral in the form of cash and a letter of credit to IndemCo. Dolphin Direct Equity Partners is a private equity fund controlled by Peter E. Salas that has a significant economic interest in Hoactzin.
What is Indem GUARANTEE worth? Why wasn't Dolphin's $6.5 million available?
Here's why is SHOULD HAVE BEEN!
MMS letter (January 2010) to Edwin H, Frank III at Indem: "MMS does not have any record whereas Bond No B004352 (for $500,000) was ever received by this office (MMS)... we do not show when this bond was ever accepted or acknowledged by this office."
Now, we're supposed to believe Tengasco NEVER kept a file of all these bonds that were supposedly filed to PROTECT Tengasco's exposure to the numerous liabilities Tengasco KNEW existed! This "bankruptcy" story concocted for the annual meeting has NOTHING to do with the recorded documentation years before November 15, 2012 (!) when Tengasco had to post the bond for $386,000. So Salas wants us to believe this is a "friendly disagreement" and he doesn't have to put up even one penny of his $6.5 million collateral and Indem isn't responsible for its guarantee!
Hoactzin became the operator of the 5 wells in lease G06168 in December 2013. No production.
Hoactzin became the operator of the well in lease g11984 in December 2013. Last three months production declined from 521 to 138 to 15 bbls of oil with gas production steady.
This is reported in the Well Production Report OGOR A, Report 4081 as of March 17, 2014.
However, in other listings dated March 3, 2014, Tengasco is still given as the operator of these leases. When those other sites are undated, we should not see Tengasco as the operator of ANY leases in the GOM.
As far as liabilities on these leases, what was said at the annual meeting and what is stated in BOEM documents gives opposite "interpretations." Let's "trust" Salas owns up to ownership of these leases and accepts responsibility for posting bonds he has claimed he "forgot" to post and could not explain why documents could not be found!
Maybe, just maybe, these steps get Tengasco closer to being a Kansas oil company.
filed by Enerjex in the past eight days to drill in Kansas. So when ( trust that is a correct word, and not if) those wells come on line, we should have a good report for Q 2.
The latest Ververka came up D & A
T8S R19W, Sec. 21, E2 E2 SW Tengasco, Inc. Veverka E 1 15-163-24178 2037 KB
2030 GL 3575 UNNAMED 14-MAR-2014 D&A
But still no news on the Albers C1 which was completed 1/24/14.
Must be a cozy office, that ste 590
HOACTZIN PARTNERS, L.P.
1706 SEAMIST DR STE 590
HOUSTON, TX 77008
Decker Operating Co., L.L.C.
1706 Seamist Dr Ste 590
Houston, TX, 77008 United States
1706 Seamist Drive # 590
Houston, TX 77008 - View Map
Engineer at Decker Operating Co., LLC
Houston, Texas Area | Oil & Energy
Engineer at Decker Operating Co., LLC
Vice President at Tengasco, Inc.
Texas A&M University
1706 Seamist Drive # 590
Houston, TX 77008 - View Map
DECKER OPERATING CO LLC
1706 SEAMIST DR
HOUSTON, TX 77008-3108 | view map