OTCPK:BLKPF - Post by User
Post by
luke4on Oct 19, 2010 4:43pm
322 Views
Post# 17583997
re: pump and dump
re: pump and dumpReaper,
you're not proposing I'm dumping are you? I sure hope not. If so you are sadly mistaken. I am long PXX and have a significant stake. I am aware that the stock might go soft while waiting to prove up Blackrod sometime later next year but as I said earlier I am not prepared to bet against it. I'll sell my PXX when John Festival sells his. By taking this position I am missing a trading opportunity to be sure but I'm a better buy and holder than a market timer.
With regard to the capital needed to develop their three areas, that subject is covered on slide 22 in their most recent presentation on their website. They anticipate $150MM development cost for Mooney and $750MM for Blackrod over the next 10 years. Of that they anticipate a small percentage coming from asset sales, $780MM from cash flow and $420Mm as yet unfunded but over the next 10 years, not today or tomorrow. They have the cash in hand to spend on Mooney and Blackrod for the next year. Please don't compare PXX to CLL. BlackPearl has no debt and CLL has one of the ugliest balance sheets in the business.There is nothing similar in the way they run their respective businesses.
You never mention Mooney. I'm curious why not. Their pilot has proven that they can get 18% recovery factor there and they are spending funds immediately to commercialize that project. Do you not like that one either? They are projecting adding 3500 bopd there in 2011 and 2012 by commercializing a proven pilot.
Of course everyone has their own risk tolerance so if you are comfortable with your own due diligence then sell or don't buy. Hell, short it if you have the nerves. I don't. Many others do.