Karakoranclimber makes 2 statements that are arguably the stupidest reasoning I've seen yet
If Coachman goes belly up, DEJ will to.
Ya better hope Coachman
Is solvent and has enough cash on hand to withstand a
prolonged down turn in the energy sector. as Coachman goes so does DEJ ?
If Coachman does not fulfill its obligations to DEJ and BWN ,then logic would follow ,they would not become 65% owners of Kokopelli. Since cash is tight and O&G prices are down ,it stands to reason that DEJ would be in no hurry to develop Kokopelli ,so financial limitations on Coachmans side (if they indeed were real) ,would infact work to the benefit of minority partners .
No question right now ,that because of low costs in both CAPEX and OPEX plus 99% ownewrship...Woodrush is the best target for near term development . 1M CAPEX per oil well ,with about 150 barrels per day (the likely minimum) per well ,is sounding pretty good ,especially when you tie it into existing infrastructure which leads to excellent fundamentals for OPEX.
This basher guy misses obvious signals that Dejour assets are on a straight path to being re-valued ,first by the industry,which will hopefully lead to the share price. If nothing damaging is done to the existing programs ,we should be re-valued soon ,despite the O&G prices being low. Infact low prices might just work to our advantage comparatively throughout the industry.
The key to the success of Dejour (near term) is in my opinion running the company balanced . The assets will take care of everything else.
Considering the O&G investment environment ,the stock has held its own. Everything about the company in the last year has been a marketable improvement ,other than the commodity prices. If DEJ can balance its books ,with commodity prices the way they are,......the stock will be embraced by long term investors. It will rise when others will fall. . Finally ,....shareholders are beginning to see the value play it has always been and the fact that commodities are the lowest in years, ,will not hurt the value investment.
The unappreciated value in DEJOUR is good cash flow from Woodrush 99% owned, good cash flow coming from Kokopelli 25% owned , nominal Canadian debt, no U.S. debt and very possibly the best NG property owned 100% by any micro cap O&G stock,....Roan Creek.
If RC is funded with the 5M needed, ,the level of risk being low ,...and a initial well is successful at either Williams Fork or Mancos or both (in one well) ,it will likely be the catalyst to permanently change the status of Dejour . For now ,all we need do,. is prove to the investment community that we are capable of balanacing our cash flow with our expenses thus showing we are a company where debt financing at
opportune rates is warranted. Not a bad place to be ,considering the low prices of O&G .