RE:RE:RE:Shorts are leaving !?Base45 wrote: In my opinion it would have been smarter to validate the production method, get a revaluation and then raise capital to aquire acres.
That's a risky strategy. You run the risk that as soon as it becomes public knowledge that our tech works, the owners of those leases would realize the true value of what they own. And they would immediately demand much higher prices to sell those lease concessions to Petroteq.
David Sealock and Jerry Bailey are geniuses in the oil sector, with the proven track records and career success that demonstrate this. There's a reason they pursued buying up the leases now. They wanted to snap them up - and lock down those resources - while they were still dirt cheap.
For example, now that we own those leases (totaling nearly 200 million barrels), you can see based on our market cap that the market is valuing those reserves as literally worthless. But as soon as we prove our tech and get up to the steady 1,000 bpd production, thereby vindicating our tech, that will change. The portion of our reserves that will then qualify as P1 resources should price out around $5 or $6 per barrel, and the remaining P2 resources should be around $2. (This being based on industry standard accounting practices). Obviously, this would be a massive, massive revaluation of the company,..to say the least!
So again, there is a strategic plan in place. This is why we spent the effort (and suffered the associated dilution and declining share price) to lock down these reserves. The plan is proceeding. The problem is, we've just had some "teething problems" at the plant at Asphalt Ridge that set us back some number of months. With the reserves firmly in place, everything now depends on wrapping up the upgrades and retrofits at our plant
pronto, and resuming an accelerating production profile.
You can be sure mgmt is very aware of this, and is moving heaven and earth to fix the problems that were discovered at the Asphalt Ridge plant. This has to be priority one right now. The next few months will be critical to the company's future.
But the main thing I want to leave you with is the thought that if and when we prove out our production technology at Asphalt Ridge, the company's valuation will then immediately shoot into the stratosphere. Not just because, at long last, a company has proven that there is finally a way to economically produce from the Utah oil sands (as huge as that is) and we own the patents to the process.
But even more importantly, because our massive, 100% owned and controlled reserves in the ground will be instantly revalued according to industry standards. This will be like adding rocket fuel to the company's revaluation. But you see, that requires having the resources in place at the time our tech is proved out. Which is why the company did it this way.
That is the strategic plan. You can see that our mgmt isn't messing around. They are shooting for the stars. If it happens as I've laid out - which is indeed the plan, imho - then the stock performance of our little company could be one for the record books. Stay tuned.
All the above is just my opinion.