I have thought that since they reported disappointing results from the first well.
They may have stopped short because they did not want to have a hit that would cause IFNY's stock to rise. I have to believe that they are very aware of IFNY's concession, and they - and others - may be waiting until IFNY throws in the towel and they can buy us out for next to nothing. If I were the NBL CEO, and I had an interest in IFNY's concession, you bet I would avoid doing anything that would raise the price of what I am considering buying.
My questions are all about the details of how they are financing the seismic. Where is the 8-K?
I agree entirely with your post. Stan is very much invested in IFNY. He has deferred his salary and taken warrants and/or options in return. If IFNY fails, all of that work he has invested will net him zero. There are other ways of investing in a company besides making open market purchases.
I should also note that IFNY could have easily made a deal with the devil to fund the company: a SEDA (Standby Equity Distribution Agreement) with a vulture hedge fund, allowing IFNY to regularly sell shares to the vulture fund (at a significant discount to the then current market price) to fund salaries and admin costs. The vulture fund then turns around and dumps those shares on the market. A SEDA results in a constant stream of dilution. I have seen stocks go from 50 million shares outstanding to 5 billion outstanding, and from $0.50 a share to $.0.0003 cents a share because of this type of death spiral financing. It also takes the pressure off the company to perform and often gives the vulture fund effective control of the company. IFNY did not go down that road. If they had, I would not be here.
What I see is company that has done a very good job of keeping dilution and operating costs under very strong control, and has still reached a point where it is in a position to begin real exploration. And the share count is still pretty low. This is an impressive achievement.
The company's (and shareholders') fate will be determined by what they find in the concession.
If IFNY is successful, I think the level of shame would make committing seppuku a legitimate consideration .
OVERLAND PARK, KS--(Marketwired - Nov 20, 2013) - Infinity Energy Resources, Inc. (OTCQB: IFNY), an independent oil and gas exploration and development company, today announced that it will be presenting at the Sixth Annual LD MICRO "Main Event" Micro-Cap Conference on Tuesday, December 3, 2013. The conference will be held at the Luxe Sunset Bel Air Hotel, which is located at 11461 Sunset Boulevard in Los Angeles, California.
The presentation by Stanton Ross, Chief Executive Officer, and Jeff Roberts, Senior Geologist, is scheduled for 2:00 p.m. Pacific Standard Time on Tuesday, December 3, 2013. Mr. Ross will be available during the day for one-on-one meetings. To schedule a meeting, please contact your LD MICRO representative or Eric Lahiji at
I am certain it is not as simple as a specific cash payment that is already specified. They are not dummies. They may have an option to take all cash or just a percentage of the concession or a combination of both, depending on the outcome of the seismic. And there has to be some guarantee in place in case they decide to go with cash; possibly Stan has agreed to issue more shares, or a third party has agreed to make the payment in return for the equity. In any case, I think that CGG is allowing IFNY to defer most (if not all) of whatever cash may be due until the seismic is done. I think that is why CGG does not want the terms of the deal disclosed. They do not want their other clients to insist on the same deal IFNY got.
In short, CGG will eventually be paid in cash or an interest in the concession or a combination, and CGG has probably said "OK, we will do the seismic and then make our election as to how we want to be compensated after we see the results."
It could also be that IFNY may decide at the end to pay it all in cash if the results are very good, in which case IFNY would have to pay extra to avoid having to give up an interest in the concession.
There are all sorts of ways to structure this type of deal, but it is a very good bet that CGG has an option to take an interest in the concession, and IFNY may - may - have the right to cancel that option by paying some sort of premium.
In any case, CGG is somewhat exposed, because if the results are bad, they may take a hit because IFNY is unlikely to be able to pay. So I have to think that they have looked at the existing seismic - hard - and determined the risk is worth taking.
I agree. If we have 20% at the end of the deal-making, that would be a good outcome.
IFNY has CGG to do the seismic. That's not a small deal. Also, as pointed out by investor, we need good seismic before we can land a drilling partner. We could, I imagine, get a partner today if we wanted to agree to give away 95%+ of the value of the concession. But that is not an acceptable outcome. Without good seismic, IFNY cannot possibly expect to land a drilling partner on acceptable terms. We have to wait for the seismic before we can hope to negotiate a partnership deal on acceptable terms.
I do believe that an 8-K is required, as the agreement certainly, IMO, qualifies as a definitive material agreement, even if confidential treatment is being sought for certain sensitive information about that agreement.
There is a process for requesting the SEC to allow certain sensitive information to be withheld from disclosure.
I have yet to read anything in your posts other than emotional, non-objective and uninformed anti-IFNY propaganda. But thanks for sharing your obviously biased opinion anyway.
Personally, I think Noble is - as is to be expected - not revealing everything about the results of their first well, especially what conclusions they may already be drawing about the location of that "high quality" resource in the tertiary they mentioned.
With seismic and drilling yet to be done, you have no basis whatsoever for asserting that "it has a less than 5% chance of being successful". The fact is that no one really knows yet, including you.
Why post things that so clearly indicate that you simply don't want IFNY to succeed, or at least that you want to encourage people to sell?
The purpose is not to "pad & protect". It is to avoid unnecessary - unnecessary - damage that might be caused by frustrated holders venting on a public cc. The information will be what it will be; emotions certainly get in the way of objectivity.
BTW, it is extraordinarily arrogant, condescending and deceptive for a poster with a history of non-objective negative posts to suggest to any other poster that they should reconsider their investment. From now on, please keep your self-serving advice to yourself.
And another thing: You have no basis whatsoever for projecting that IFNY has only a 5% chance of yielding an economically viable prospect. With seismic and drilling yet to be done, the jury is still out on what the potential is.
I certainly would not come to that conclusion. They published the results of the drilling on their concession. If they found evidence of commercial resources on IFNY's concession they certainly would not say a word about it. They would keep that to themselves.
I wrote my posts before I read yours. I now see we share the same view about Noble not leaking info to Stan. So blaming Stan for not knowing is just plain wrong-headed.
BTW, I am certain that Noble held its results and its decision very close to the vest. IFNY is a competitor in the region, and competitors don't share that kind of info with each other. How can anyone reasonably believe that IFNY should have been aware of what Noble's results were and what decision they were going to make? Noble did seismic on their own concession and a bit on ours, and they chose to drill right on the border with IFNY's concession. Maybe what they were really up to was checking out our concession as well as their own.
I would suggest, if you are interested in not damaging your own investment, not to ask questions in an accusatory manner. I would drop the question about management's credibility. Ask in a more neutral and open ended manner.
"How does the current share price affect our ability to pay for the seismic and to eventually list on Nasdaq?"
"Is Noble really giving up on the area, or do you think they are simply using the results to better identify the place where they will drill next?" "Did Noble stop short of their original target depth, and - if they did - why do you think that is?"
Some may be angry at management for believing that they should have known in advance about Noble's decision to plug that well, but I am certain they did not. Who is to say that Noble has not decided - from what they did find - that IFNY has the more valuable concession and they want a piece of that;? In such a scenario, they would not want their results to drive up our share price and put us in a stronger negotiating position.
Be smart. Don't let your emotions and venting damage your own investment.