Facts are facts
Working in the Maritime Oil & Gas Industry, there is no one that would like to see the bits heading south more than me, however there are some considerations to be made.
1) The average cost of a drilling rig is (depending on size & drilling program) $25-40 per minute (with associated services & rentals) That is not including mob/de-mob costs, upper level suppport (engineers that design the well program, and work with the company men on location to ensure the well is drilled safely & cost effective.) 6.5 cents per share = 500 shares per minute = 720000 shares per day
2) Casing / Tubulars (pipe) average around 33% of the overall well cost. Who is supplying this pipe to them? This will have to transported from Alberta (guess). Depending on the depth of the well, you can be looking at some serious coin to even mob pipe. THe average truck load from Alberta is in the $5-7K range. Let's say $6k x 12 loads = $72K.
3) Then you've got 3rd party services: wireline, casing/tubular, wellhead, mud (fluids account for another 20-30% of the overall well costs), well testing, hauling of oil (hopefully), operators to monitor the well while flowing (daily checks).
4) Hopefully, after the well is completed, and the rig is gone, there is no remedial work required, because that would require a service rig (which the rock ain't got none of yet). Not as much to mob one of these, however an additional cost. CIVC used one last year for the re-entry.
4) Let's not forget this ain't the first kick at the can for CQV, and they managed to earn alot of vendor scrutiny with their "cheque is in the mail" operations from the past.
5) Does Shoal Point Energy currently have any revenue? Are they earning any money from assets? These are things that companies like to see from potential customers before they set up a line of credit on good faith. What if they don't find oil? Are they still going to be eager to pay all these debts from the well? Companies really do take this into consideration prior to doing business, they may even require "up front" payment prior to providing equipment/services.
Punchline to all this...
I am not confident in the current well development team to facilitate this type of operation in a successful, cost effective operation.
I am not trying to get anyones cheap shares by shaking the tree, I already have enough of them (at 3x the cost they are at now) and have been sitting on them since 2000. I want this thing to work, however I am frustrated with the lack of actual information, and knowledge that some posters are exhibiting here. If you don't know; don't tell....
I hope this works out for everyone, however I am really wondering if the people in key roles to pull this off are the best ones for us, team.mNever any press releases, gas plays with no results, they can't even extract the oil they've produced for christ sakes!!!
If you are reading this Steve, I expect a different level of professionalism from your team to the OWNERS OF THIS COMPANY, the shareholders, remember us? I can't wait for the next meeting over in Stephenville, might even take a trip myself. Be curious to see how the vote for the new BOD turns out, eh.
Time to Git 'er Done!
ST.