IND - Indus Energy

Re: QPN - Quest Petroleum

basilio said:

Well Svengali that is certainly another point of view....

I'm not sure how "crooked" the management of QPN is. Frankly they are probably on par with a host of other small oil explorers and miners.

I think my biggest beef was the way the value of the Ranau leases, the ease of drilling, the confidence in the then known fields completely disappeared after the capital raising in 2011. Investors were initially told this was a potentially excellent opportunity with the fair provisos that until you drill and see whats down there you can't be sure.

They never drilled. As I said earlier the two possibilities (or a combination) are

1) The story they fed the investors to raise capital was totally overblown or
2) They actually didn't know what had to be done or had a reasonable picture of the situation.

Take your pick here - reckless promotion, ignorant research or both.

And by the way when Dirty Harry was asking the perp if he was feeling lucky - it was not intended to encourage optimism.

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I also have a serious question about appropriateness of a CEO drawing $338k in fees or share equivalent in what was a moribund company. I just cannot see the work or value he achieved for that money. The net result seems to be that as the SP fell the remaining cash assets of the company flowed back to the managing core via share issues.

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When Dirty Harry posed the question, from memory, his gun was out of bullets...... a parallel could be drawn with our position now as shareholders

I feel that the AGM may tell us a tale about what happened for the Ranau drilling not to go ahead, there must be a story to tell, anyone going to this meeting should try and elicit an answer

As to seeing what value Milewski has achieved, we may find out at the AGM the answer to your query, namely was a vote of confidence to shareholders what senior management were/are doing given by their taking shares instead of dwindling cash reserves (I know it seems excessive but look at the position we are all in),

Look at the line up of recipients, Company Secretary Jonathon Whyte, COO Ken Bull (the man who can revive and optimize actual wells), Chairman Gus Simpson, Internationally renowned investor and our adviser Michael Kamis, outside the T20 the legendary Eddie Sugar who charted FMG and Bunnings rise and establishment, ask yourself why do people like Kamis and Sugar take positions, why does Bull stay with the Company at what seemingly is a precarious position

We are certainly cash poor, hopefully we can become asset rich soon

Svengali

Re: QPN - Quest Petroleum

Who knows Svengali ?!? Who the hell knows...

I grant you the possibility that the proposed changes will offer shareholders a (small) opportunity to recover some value from what has been a disastrous investment after what appeared to be a very promising start.

I suppose my view after seeing a number of such situations is that ordinary shareholders are the very last people to see value from proposals offered by management and consultants. Management makes sure it gets its cut. Consultants and potential partners stake out their claim. Mug punters come a distant last.

What that means in my experience is that whatever proposal comes up it has to be really good to see any dollars floating down to shareholders. This will be particularly apposite in the current market which has almost no speculative intent and where profit takers whip a dollar off the table before it has actually hit the deck..

Re: QPN - Quest Petroleum

basilio said:

Who knows Svengali ?!? Who the hell knows...

I grant you the possibility that the proposed changes will offer shareholders a (small) opportunity to recover some value from what has been a disastrous investment after what appeared to be a very promising start.

I suppose my view after seeing a number of such situations is that ordinary shareholders are the very last people to see value from proposals offered by management and consultants. Management makes sure it gets its cut. Consultants and potential partners stake out their claim. Mug punters come a distant last.

What that means in my experience is that whatever proposal comes up it has to be really good to see any dollars floating down to shareholders. This will be particularly apposite in the current market which has almost no speculative intent and where profit takers whip a dollar off the table before it has actually hit the deck..

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You constantly take a morose negative view, like most of the unknowing drones who submit on this and other sites

Think about this........if QPN come out with some positive news in North America and the price rises to say 1 cent (it has been there before) then the capitalized value of the company would be about $30 million. This is chicken feed for a producing company. What if their cap value goes to $60 million, shares would presumably go to 2 cents and EVERYONE would be a winner, it isn't that hard and with the right investment it is achievable

Cross your fingers and wait !!!

Svengali

Re: QPN - Quest Petroleum

svengali said:

You constantly take a morose negative view, like most of the unknowing drones who submit on this and other sites

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Svengali, no need to be insulting. You have your opinions, others have theirs. Discussion and debate is what ASF is all about, not personal attacks.

Re: QPN - Quest Petroleum

svengali said:

You constantly take a morose negative view, like most of the unknowing drones who submit on this and other sites

Think about this........if QPN come out with some positive news in North America and the price rises to say 1 cent (it has been there before) then the capitalized value of the company would be about $30 million. This is chicken feed for a producing company. What if their cap value goes to $60 million, shares would presumably go to 2 cents and EVERYONE would be a winner, it isn't that hard and with the right investment it is achievable

Cross your fingers and wait !!!

Svengali

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And if they come up with something really, really great they could go to $1 and the new company would be worth $4billion !!

This is a fruitless conversation Svengali. This company is so far off some positive news it may as well be in the next universe. And unfortunately it starts with some very heavy lead in the saddle - the burnt smell of many fingers. And trying to create $30m of value in a struggling oil explorer is highly ambitious... to say the least Lets just see what happens

Your comment about morose negative views is intriguing. If you care to read back to the earlier chapters of the QPN story you might see I was very enthusiastic about its prospects. The pitch presented to investors was compelling. Many of us, and clearly that included me, marched in with very high hopes.

On the big picture QPN is not alone in its failure as a prospector and a company. If most people are looking a bit beaten around the ears its because they have been absolutely creamed in the past few years investing in anything other than the top 20 companies.

Re: QPN - Quest Petroleum

basilio said:

And if they come up with something really, really great they could go to $1 and the new company would be worth $4billion !!

This is a fruitless conversation Svengali. This company is so far off some positive news it may as well be in the next universe. And unfortunately it starts with some very heavy lead in the saddle - the burnt smell of many fingers. And trying to create $30m of value in a struggling oil explorer is highly ambitious... to say the least Lets just see what happens

Your comment about morose negative views is intriguing. If you care to read back to the earlier chapters of the QPN story you might see I was very enthusiastic about its prospects. The pitch presented to investors was compelling. Many of us, and clearly that included me, marched in with very high hopes.

On the big picture QPN is not alone in its failure as a prospector and a company. If most people are looking a bit beaten around the ears its because they have been absolutely creamed in the past few years investing in anything other than the top 20 companies.

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I am interested in your assertion that QPN is " so far off some positive news it may as well be in the next universe", you may do well to inform the ASX of this immediately !!!

I read several months ago that in the "penny dreadfuls", 11 company's from a total of in excess of 1100 actual paid a dividend in the last 2013/14 reporting season, THAT'S 1 PERCENT, this is where QPN sits so us pontificating about it may well be fruitless, however for QPN to achieve a capitalization of $30 million is not beyond possibility or hope

As usual, time will tell, and buyers within the last 12 months,(with sellers now unable to get higher than .001 cents), would make a motza if the shares rose to say .006 let alone 1 or 2 cents

I am watching with interest certain of the eminent shareholders list ..... growing..... what drives my interest is (to quote Professor Julius Sumner Miller) why

We shall see what happens in the next 12 months

Svengali

Re: QPN - Quest Petroleum

A few more thoughts about QPN, its future possibilities and the speculative section of the sharemarket at the moment.

1) The current price of QPN is .001 - but it likely to fall further. The recent flurry of interest suggested QPN can be sold at .001 But the Board is proposing a 20-1 consolidation at the upcoming AGM. In theory the new shares would be worth .02c. In reality I suggest it will settle at substantially less than that figure unless there is some very, very positive news.

2) What news will boost the SP? At the very best the Board may come out with a promising new oil prospect. Some leases that have been overlooked, not quite explored whatever. This was the pitch for Ranau. It is the story for every other small speculative explorer. My thinking is that investors would be extremely cautious about believing another pitch so soon after the current disaster. On the wider picture there have been a host of other small explorers that have pitched promising stories and have burnt shareholders funds. Consider HOG, MAD, LNC for a start. And anyway when the pitch has been made - there will be the inevitable capital raising to pay for all the consultants, surveys, staff and research required to make this fly.

Does this sound familiar? It should because it is what has happened with the previous incarnations of this company and many like it.

Finally the current market takes any profit as soon as it appears. Even companies with excellent drilled prospects and seemingly very good value do not hold their SP. I'm looking at BML for example. And in the oil sector the current collapse of oil prices is causing re evaluation of value.

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It will be interesting to see how long the current SP price holds. I just don't have any confidence that .001 will be attainable in teh near future after consolidation.

Re: QPN - Quest Petroleum

How to move the market in 10 minutes...

I'm surprised (but not really) that suddenly the entire .001 buying list has been cleaned out.

If QPN supporters want to see at least a semblance of life in the current parrot they will have to start some more serious buying.

Re: QPN - Quest Petroleum

basilio said:

A few more thoughts about QPN, its future possibilities and the speculative section of the sharemarket at the moment.

1) The current price of QPN is .001 - but it likely to fall further. The recent flurry of interest suggested QPN can be sold at .001 But the Board is proposing a 20-1 consolidation at the upcoming AGM. In theory the new shares would be worth .02c. In reality I suggest it will settle at substantially less than that figure unless there is some very, very positive news.

2) What news will boost the SP? At the very best the Board may come out with a promising new oil prospect. Some leases that have been overlooked, not quite explored whatever. This was the pitch for Ranau. It is the story for every other small speculative explorer. My thinking is that investors would be extremely cautious about believing another pitch so soon after the current disaster. On the wider picture there have been a host of other small explorers that have pitched promising stories and have burnt shareholders funds. Consider HOG, MAD, LNC for a start. And anyway when the pitch has been made - there will be the inevitable capital raising to pay for all the consultants, surveys, staff and research required to make this fly.

Does this sound familiar? It should because it is what has happened with the previous incarnations of this company and many like it.

Finally the current market takes any profit as soon as it appears. Even companies with excellent drilled prospects and seemingly very good value do not hold their SP. I'm looking at BML for example. And in the oil sector the current collapse of oil prices is causing re evaluation of value.

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It will be interesting to see how long the current SP price holds. I just don't have any confidence that .001 will be attainable in teh near future after consolidation.

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I hope tonight's announcement clears a few matters up

Svengali

Re: QPN - Quest Petroleum

Last nights announcement might explain the sudden mystery buying spree. Sounds like a solid 3 phase program for the coming year (i assume 2015) with real drill bits hitting the ground every couple months. True redemption possibly for QPN. I like the First Nation owned JV partnership deal. I wonder if we'll see a sudden cancellation of sell orders in the near vicinity? Pheonix rising?
The SP consolidation strikes me as potentially a strategic good thing as it puts QPN within qualified reach of certain Instos and sophisticated investors.

Re: QPN - Quest Petroleum

Well something is happening !! I think that after a number of very expensive experiences with promising oil leases etc, etc I'll take a pass on this one.

If one looks at the history of these events the best time to make a dollar is after the glowing consultant reports come out and before any drilling bits actually hit the ground. Thats when all the new investors have stars in their eyes and are dreaming of instant wealth. (Yep that was me...)

But... all the best..

Re: QPN - Quest Petroleum

basilio said:

Well something is happening !! I think that after a number of very expensive experiences with promising oil leases etc, etc I'll take a pass on this one.

If one looks at the history of these events the best time to make a dollar is after the glowing consultant reports come out and before any drilling bits actually hit the ground. Thats when all the new investors have stars in their eyes and are dreaming of instant wealth. (Yep that was me...)

But... all the best..

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Cannot believe the correspondence since the announcement came out, everyone ponder these points

1/ The lands are in a safe country, Canada, owned by the original owners, our partners, so no Indo style shenanigans,(financial graft or legal) regarding land tenure. The two jurisdictions we are working in are like chalk and cheese, I am still looking forward to find out what happened in Indonesia, when /if we do you might understand why we had "a very expensive experience with promising oil leases"

2/ It says the cost of a four well drilling program is $700,000, has been planned and takes 6 to 8 weeks to complete
They could go to the local bank and borrow the money on a credit card........no new share dilution needed !!!!! money lenders will be lining up around the corner

Congratulations should go out to management for this sensational development, it could be humungus to say the least,

Look back and see that the last two quarterlies alluded that they were looking to undertake what has now evolved in spades, every one was told so to speak but many wouldn't listen and wished to believe the worst. I hope posters didn't fall for their rationale

Svengali

Re: QPN - Quest Petroleum

Settle Petal....

Quest now has a new venture, a new chapter, a new story.

It is a loooonnng way off actually achieving a financial result for anyone other than the consultants, drill operators, management, directors and financiers. Not to mention of course sharebrokers and akin.

Some years ago I would have been interested in this pitch. But frankly every single story presented by an oil explorer "looks good" .

It has to look good. The whole point of the process is to persuade lots of people to invest in the possibility that this time it will be different. We will strike a gusher that will make us all rich....

This is 2015 not 1945 . The gushers have all been found. What remains are the possibilities of odd fields in difficult locations that could make a few dollars. It will be questionable whether the costs of exploration, drilling, management will allow any substantial profits to flow to investors beyond short term share spikes.

All the best though. I sincerely hope that at least this time Quest shareholders see some drilling for their dollars.

Re: QPN - Quest Petroleum

There is also the unfortunate reality that oil prices are falling at the moment which will have to result in some recalculation of potential value in drilling in far north Canada. Certainly going to be pain for energy companies and share prices in the short term.

Re: QPN - Quest Petroleum

The switch has been thrown!! QPN has just doubled in price since the JV announcement.

So folks if you are astute enough to get in early on the canniest oil play since (insert any date..) there are 61 mil shares at .002 looking for a fresh start.

(If you start buying I reckon another couple of hundred million might fall your way..)

Re: QPN - Quest Petroleum

Basilio,

I must say your posts perplex me, nothing personal, as many of the posters about QPN do.

I fully realize the consternation that is prevalent concerning QPN fueled by a seemingly not very active announcement regime from HQ, but I will suggest there may be a reason for this

You admonish management about this release of Thursday night,(seems tom me it is a gigantic game changer), you seem to think it is just a sop for management/staff and sub contractors with fatuous statements like"there are no more gushers"/ oil prices are falling/there are 61 million shares at .002 looking for a fresh start etc., etc..

An acquaintance of mine who is a large shareholder attended the AGM, went into it concerned, came out with Gus' words ringing in his ears..... low risk/low cost/high return, so bring it on I say

61 million shares at .002 is $122,000.00, chicken feed in the scheme of things, I have a friend who has more than this number !!!

The fall in oil prices is just the OPEC leaders trying to exert pressure on new producers, the'll be the first to up prices when it suits them, this is purely transitory believe me

Your attitude although poses some questions in my mind

Firstly, please tell us what are your credentials in the mining of oil, particularly in the Canadian sand belt which has apparently 167 BILLION barrels in reserve, second only to Saudi Arabia, nearby companies are now producing 40,000 barrels per day, (bpd), with projection at some nearby well areas going to produce 90,000 bpd, WHATS NOT TO LIKE ????

Secondly,we have just signed the joint agreement with the local tribal holders of the land on Thursday (so no information could be given out until the night before the AGM), apart from giving us an entree into an apparent lucrative site, it ensures that we will not go through the unseemly land tenure problems of the corrupt Indonesian scenario. I was informed yesterday from a chap employed by big company in that unfortunate country, that the newly elected President has been totally emasculated by the opposition run Parliament and they are demanding that all foreign owned companies give the locals 60% ownership, if so then that's the end of Indonesia economically, they will need even more foreign aid to stay afloat.....what a joke and we are well rid of them and the sooner we sub out Ranau the better

Let me say in closing that I am anxious to see how management finance our progression, I am sure there will be enough suitors with money to allow us to expand without having to water down the share register any more

The management and staff are to be congratulated for their endeavors, I queried Milewsky's performance, to him (not on some site being faceless), and I now feel that he seems to have done a sensational job, a coup in fact

I suggest you take these events in a positive fashion, if people can't see positives in what has happened then the consolidation gives them all a way out........they'll never be happy and they can sell

Svengali

Re: QPN - Quest Petroleum

Sevengali I also am a bit perplexed by what I perceive as your very Pollyannish approach to the announcements made by the new Quest.

Firstly ( as I said previously..) good luck to all current and new shareholders. I sincerely mean that.

Nonetheless I totally stand by my observations about the nature of all small oil explorers predictions about the "promising nature" etc of their new leases. As I explained I was well and truly sold on the previous promotion of the Indonesian leases. That was also extremely positive in terms of

1) Excellent prospective areas that were still largely untouched
2) Great results from surrounding large oil players
3) Simple, easy drill location with a high chance of gas/oil find.

Check it out again if you wish to confirm.

On a broader note I have seen and been involved in a number of similar scenarios . HOG, MAD, JPR, LNC energy and others have had "great prospects". Sadly none have flourished despite initial enthusiasm and some early promising finds.

This goes to my final point. This is 2015 (almost) not 1945. The world has been scoured for large easy to find oil reserves. There is some oil left but the probability of finding an easy gusher is, in my view, remote. Not impossible of course but unlikely.

What is certain is that there is a substantial amount of associated costs with looking for this oil. These have to be found and paid for - regardless of the result.

I would also suggest that just because it might only take a few weeks to actually drill for the oil doesn't mean it will happen quickly. Organization, weather, permits, studies, etc etc will take time. I wouldn't be holding my breath on a quick result.

Re: QPN - Quest Petroleum

basilio said:

Sevengali I also am a bit perplexed by what I perceive as your very Pollyannish approach to the announcements made by the new Quest.

Firstly ( as I said previously..) good luck to all current and new shareholders. I sincerely mean that.

Nonetheless I totally stand by my observations about the nature of all small oil explorers predictions about the "promising nature" etc of their new leases. As I explained I was well and truly sold on the previous promotion of the Indonesian leases. That was also extremely positive in terms of

1) Excellent prospective areas that were still largely untouched
2) Great results from surrounding large oil players
3) Simple, easy drill location with a high chance of gas/oil find.

Check it out again if you wish to confirm.

On a broader note I have seen and been involved in a number of similar scenarios . HOG, MAD, JPR, LNC energy and others have had "great prospects". Sadly none have flourished despite initial enthusiasm and some early promising finds.

This goes to my final point. This is 2015 (almost) not 1945. The world has been scoured for large easy to find oil reserves. There is some oil left but the probability of finding an easy gusher is, in my view, remote. Not impossible of course but unlikely.

What is certain is that there is a substantial amount of associated costs with looking for this oil. These have to be found and paid for - regardless of the result.

I would also suggest that just because it might only take a few weeks to actually drill for the oil doesn't mean it will happen quickly. Organization, weather, permits, studies, etc etc will take time. I wouldn't be holding my breath on a quick result.

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Basilio

As you nothings quick for certain, I was just on the phone for over half an hour with Gus Simpson, now that was illuminating !!!! no offence meant here but rather than chat back and forth, I know where they have come from and where they are trying to go

All the best

Svengali

Re: QPN - Quest Petroleum

svengali said:

Basilio

As you nothings quick for certain, I was just on the phone for over half an hour with Gus Simpson, now that was illuminating !!!! no offence meant here but rather than chat back and forth, I know where they have come from and where they are trying to go

All the best

Svengali

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Why don't you illuminate us then? I am sure that he didnt disclose anything market sensitive so there is no reason it cannot be included on this forum...

Re: QPN - Quest Petroleum

There is another thing that concerns me regarding the latest proposition from Quest.

It seems the new drills will be in areas using the CHOPS process. Essentially they are trying to separate oil mixed with sand.

This is not a conventional oil drill aka Saudi Arabia ie drill, hit oil, gusher pipe and sell. It is far more capital intensive and results in less yields. It will cost a lot more to develop and the net result for investors is far more problematic. This is particularly the case with the current falling price of oil.

Obviously we shouldn't presume oil prices will stay low. But when one is analysing costs and returns you have to pay some attention to current figures.

I wouldn't necessarily expect the Directors to have an economic case worked out for this new proposition. But perhaps investors should be asking questions like

1) What are the costs and returns of similar CHOPS development in the region ?
2) At what volumes of oil flow would the drills be economically viable?
3) At what oil price would the developments be profitable?
4) How does Quest intend to finance the development (as distinct from the drilling) of the new prospects ?

Any thoughts Svengali ?