Drake Winter Operations Increases Production
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Posted: Tuesday May 4 11:52:50AM 2010
2009 was obviously a huge disappointment for Drake and its shareholders. The fourth quarter was paricularly disappointing with a significant increase in costs, a decrease in production and a drilling program which increased debt with only marginal results. At this time I am waiting to receive Q1 results later in May as production should be over 40% higher in Q1 compared to Q4 and costs should have been significantly reduced. The company also successfully drilled the Sousa 01-24 well during the first quarter which will have a very positive impact on future operations.
- company is looking at merger, RTO, and re-organization opportunities. While this is no guarantee, with Drake owning its own infrastructure, several years of drilling prospects, and reserves of about 750 mboe which should be worth $13-$15 million, this could result in a much higher value than the current trading price. One never knows if and when a transaction could take place.
- debt is very high and company is limited in its ability to drill due to capital constraint
- the market seems to have given up on the company at the current time
I am currently waiting on reserve numbers and Q1 report and will reserve judgement until that time. Our next QIS Update outlining the latest press releases should be out shortly.
Please complete your own due diligence.
By Broke in Canada
Posted: Monday May 3 8:54:43PM 2010
Doren, what are your thoughts on the annual results?
Why was there insider selling before the release of these results?
Posted: Tuesday Apr 13 6:25:51PM 2010
Not to be rude...but are you drunk? How could you suggest they do a share buy back? Look at there balancesheet..they are in alot of trouble with the debt load they are carrying in an environment where NG is 3.51 AECO price. There is no cash for a share buyback..
In my opinion...they have too either recaptilize or merge..I knew this months ago looking at the financials.
People on here are still forgetting that a significant percentage of drakes production is NATURAL GAS! How much cashflow will the NG side of the business provide...I think we all know the asnwer to this.
Even with some hedged...Drake needs to pull a miracle and massively cut operating costs on the NG production...make a spreadsheet...like I did a few months back and calculate interest costs, operating costs...versus cashflow...and incorprate REALISTIC decline rates.
People seem to always use unrealistic decline rates.
Bottom line is if NG prices continue as these levels...I expect alot of juniors that did not cash up in the fall will be putting out press releases stating they are up for sale!
Posted: Wednesday Feb 10 8:18:18AM 2010
Wow! DPE.v hit a high of .27 this morning on 691K volume. I bought 50K shares at .11 last week after the winter operations PR so a quick double. My original shares are still in certificates. Need to get those deposited somewhere and at least have the possibility of selling some day. For once, my procrastination may payoff.
Posted: Wednesday Feb 10 6:51:25AM 2010
stock popped to .20 this morning and is currently at .18 on 209K volume. Market cap per flowing barrel is still only 14.4K per boe. That is extremely cheap for an oil heavy producer. Another couple of oil wells and that ratio should double or triple. Median for QIS third qtr was $33,976 and that included many depressed ngas producers. Most oil producers with greater than 50% oil were well above that median figure.
Posted: Wednesday Feb 3 1:19:25PM 2010
oil revs should help a lot. Looks like oil will be about 1/2 production so if oil is 125bpd and ngas is 125boepd, you get total revs for a qtr of about $1 million per qtr. Compare that to Q3 when they had gross revs of $280K. Should give company a big boost when qtrly report comes out.