Oilly, no living person has ever been able to reliably predict short term stock prices. While I don't know Westcoast's motive for such a post, his predictions will do no better than the dart board theory.
As the company's revenues transition more and more to South Texas, it makes me wonder how long the headquarters will stay in Riverton, Wy.
Doesn't meet the standard of a classic bottom reversal, not enough trading volume.
However, it was an impressive bounce back off the bottom of $3.57! We've got a very high Beta in USEG, not to mention some very odd news being disclosed specifically about the company.
The recent decline is a sector problem. FPP, ESTE, MCF all have been week. Many other small caps have also been hammered in the last two weeks. PLNR and POWR are two examples declining without any news. Yesterday's volume was the least for USEG in fifteen months and the day ended with painted tape.
Don't know when the bottom reversal comes, it may have started a few minutes ago. We'll have to wait and see.
I'm a bit surprised this wasn't announced by management.
I suppose they could argue it's immaterial given that the funds are still uncertain. At the same time this deal ought to be viewed as a positive; there is now some chance for cash, whereas it didn't appear anything was happening prior to the change.
I'm not short or long, just watching, but my point is valid.
Another angle at the subject is to look at the 17,628 gross acres owned by the company and consider that $112 million PV-10. That comes out to a value of $6,350 per acre. Yet Earthstone just cherry picked 200 prime gross acres for $444,000, or $2,220 per acre.
Personally, I cashed in some profits and all that's left is the house's money.
Boolean said he's taken a position in Lucas Energy. I wonder if he liquidated some of his ESTE for that purchase.
If you look at the reserve report from the year end 10K report, attachment 99.1, it shows proved reserves valued at $260 million.
The PV-10 discounts this at 10% each year bringing it to $112 million, discounting it by 57%. That means it is assumed these properties will be cashed out on average in eight years.
Yet if you look at the company’s track record, it is taking much longer than eight years to develop its properties. Thus it seems the 57% discount is not high enough.
Given that MCF stated most Beeler wells will be in the 200-300K Boe range, and given a good well like the 2H that has probably given gross production of 170K boe, wouldn’t you think this has a little more time to run?
Let’s say this well is on the high range of total Boe at 300K. Since its used 170K boe, there is 130K boe remaining. If it produces at 100 boe/day there are still 1300 more days of production left.
What do you think?
You want to know when they will monetize it.
And here we have a guy like Richard Clovis who extracts all the July production data and puts it in a format that is easy for us to understand. It tells us July production ended up at about 1500 boe/day counting Bakken and other Texas non Buda. It projects that production probably will be higher in August and September. This information is available to us before any statement by the company, and before any analyst update.
Not to mention, Richard has pretty much figured out the mystery partner that will result in more monetization.
Yet you diss him for “incessantly posting drilling info?” How silly!
In level 2, you have to drill down.
Take a dry hole for example. Under GAAP accounting that cost gets added to the asset base rather than being expensed. Or a gain on the sale of old properties gets subtracted from the property pool. So as you look at the balance sheet, you are mislead. Level 2 will help you sort these things out, but that takes some micro analysis.
There were posters with way more experience than me who tried to give you other examples, but you wouldn’t listen.
This might be a long shot, but not much of anyone has discussed it...
What if one or more of the wells, 16H, 17H, 19H, or 20H, etc. didn't experience the normal rate of production decline, instead were discovered to be another Buda super well?
The shorts are still engaged.....
Date---shares short---Total share reported to Finra---ratio
IMO, compensation is reasonable for the five executives. This is a publicly traded company with lots of responsibility assigned to it. Like it or not, people in these positions get paid lots of money.
In addition, the company has acquired properties with market values that ought to be worth somewhere in the nine figure range over their book value. So I would argue that the management has done a good job.
What still needs to be accomplished is a fair share price.
The theory is that an insider might have better insight into the future of a company. Thus if he is willing to put his own money down, it should be considered bullish. There can always be false reasons for making this assumption, options could be one, or maybe there's a show of support where the purchase is maybe for image. At this point, the insider purchase does not look like fools gold.
Looking at Danni's profile on the company website, his background is mining. FWIW!
Thanks for bringing this to our attention so quickly.
Go look at both sections in Reg Sho daily files.
While the NYSE shows only 200 shares short, Nasdaq showed 116,835 shares short out of 222,630 shares total, that's more than 50%.