IND - Indus Energy

[svengali]

Re: QPN - Quest Petroleum

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...

I have researched the Company and kept in contact and worked with other like minded people FOR YEARS, all the information is out there as to where the Company is going ............ you go and do the research and draw your own conclusions

Svengali

 

[svengali]

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 ?

Basilio

I have conversed with you over the last few weeks, trying to raise certain points

The Company has now been able to release information as to what has been and is doing,

The questions you have raised should be posed to management for their elucidation. By point of fact your question one (1) has been covered in the Company announcement, Gus informed me of estimated flows, remember we have a T20 holder carrying out the works on the project and Ken Bull is closely involved, you can work out question 3 from information given and tying it in with present world prices. It is fairly predictable how they will raise funds to progress, remember Gus said at the AGM we have got a"low cost/low risk/ high profit situation"..........nuff said, all go away and put on your thinking caps ........... if you reckon it is as the doom sayers say then sell, if you reckon there is an upside at .001 and you believe the management and Directors (with their skin in the game) are doing their best for shareholders, then hold or buy.......... IT'S THAT SIMPLE

Friends and I have researched and followed this Company for years, most of are behind at the moment like everyone else, we're are hanging with full hope

Svengali

 

[basilio]

Re: QPN - Quest Petroleum

Sven I think you should be careful about posing the question of an upside from .001. As you are aware the shares are being consolidated at 20 to 1 . There is still significant downside possible if the consolidated shares fall below .02.

Also there is no way anyone will simply accept the assurances of Gus the director that this is a "low cost/low risk/ high profit situation" . I'm sure you would anticipate and expect more tangible information rather than broad stroke comments particularly given the high risk nature of the enterprise and the previous experience of the company.

Good luck!

 

[svengali]

Re: QPN - Quest Petroleum

Sven I think you should be careful about posing the question of an upside from .001. As you are aware the shares are being consolidated at 20 to 1 . There is still significant downside possible if the consolidated shares fall below .02.

Also there is no way anyone will simply accept the assurances of Gus the director that this is a "low cost/low risk/ high profit situation" . I'm sure you would anticipate and expect more tangible information rather than broad stroke comments particularly given the high risk nature of the enterprise and the previous experience of the company.

Good luck!

Basilio

This company has had to up sticks and leave Indonesia, if we were still trying to operate meaningfully there we would have folded by now

Many people are extremely irate with the company because of the total lack of disclosure, perfectly understandable, but we shouldn't let this cloud our judgement when it comes to our present and future position

Searching for a new line of growth as a provider of services led QPN to a few failures to connect in the US and finally this Cold Lake scenario

The Cree tribe, who has received royalties for gas from their lands, wished to participate in the search/production and sale of their own asset in oil. QPN , as I have stated before, has the right team led by Ken Bull and the Apex sub contractors led by Michael Kamis (a QPN T20 holder) to be the working partner with the indigenous owners

Management and staff, in my opinion, are to be congratulated for getting us to this point, it is now up to every individual shareholder to have a point of view as to whether they will succeed, and hold or sell accordingly

To reach this point of decision making get all the information you can. Start by reading the company announcement regarding QUEST PETROLEUM JOINT VENTURE, contact HQ for a paper OIL SANDS FACT AND FICTION and Google in ALBERTA OIL SANDS, this should start to give you an understanding of our potential and fill in some of your "broad strokes"

Don't worry about the oil price scenario, this is only transitory and the Saudis will soon HAVE TO push the price back up to $100 a barrel, Google an article RED IS THE NEW BLACK on DAILY RECKONING

The upside of this could be astronomical

Good luck

Svengai

 

[prawn_86]

Re: QPN - Quest Petroleum

Don't worry about the oil price scenario, this is only transitory and the Saudis will soon HAVE TO push the price back up to $100 a barrel, Google an article RED IS THE NEW BLACK on DAILY RECKONING

The upside of this could be astronomical

Good luck

Svengai

LOL

Oil sands are one of the hardest and most expensive (not to mention polluting) ways to extract oil. Anyone thinking that an oil sands play is a good one in this climate should just invest in oil directly rather than a company which has an additional layer of risk.

 

[svengali]

Re: QPN - Quest Petroleum

LOL

Oil sands are one of the hardest and most expensive (not to mention polluting) ways to extract oil. Anyone thinking that an oil sands play is a good one in this climate should just invest in oil directly rather than a company which has an additional layer of risk.

Thanks for your knowledge and financial advice, I appreciate them

Let us know, when the share resumes trading, that you have sold out and are backing your thoughts with action and I hope you do not take to big a hit. If you stay in it would make this last post of yours look pretty hollow but what the heck

A chap I know has bought 30 million heads at .001 in the last week or so, reckless,maybe, but if you are wrong and the Cree tribe/QPN conglomerate succeeds, we will have to contact him in the Bahamas because he will make millions

If a nearby company is knocking out 40,000 barrels a day, and we can grow the company to 500 wells say at 70 barrels per well, (their estimate per well), think about the capitalized value then. There will be no problem raising capital to set up the wells, think about it, say 70 barrels by 330 days @$25 (they a saying the going rate of costs is $25 per barrel, and I'm only claiming a $50 barrel sale price) equals $577,500 annual income per well............cost per well from Phase 3 onwards estimated at $600,000 DO THE MATHS

Using the latest technology it should be recoverable without undue pollution, the Indians think so, Apex Mining think so, the Alberta authorities think so as it is now common drilling practice in the Canadian oil sand belt

As I said let us know the sale of your holding

Svengali

 

[Porper]

Re: QPN - Quest Petroleum

A chap I know has bought 30 million heads at .001 in the last week or so, reckless,maybe, but if you are wrong and the Cree tribe/QPN conglomerate succeeds, we will have to contact him in the Bahamas because he will make millions

Classic lines.

 

[basilio]

Re: QPN - Quest Petroleum

It will be interesting to see how the Phoenix stacks up after consolidation.

Svengali I am amazed that the Quest management is talking about 500 wells at 70 barrels per well a day as being the basis of their plan. That is one expensive build in the far north of Canada. Just cannot imagine how it will ever do more than cover the quite significant development/ maintenance/management tax costs/royalties that are involved.

And of course they have yet to prove the volumes and longevity of the proposed wells.

The current price of oil certainly won't help.

 

[svengali]

Re: QPN - Quest Petroleum

It will be interesting to see how the Phoenix stacks up after consolidation.

Svengali I am amazed that the Quest management is talking about 500 wells at 70 barrels per well a day as being the basis of their plan. That is one expensive build in the far north of Canada. Just cannot imagine how it will ever do more than cover the quite significant development/ maintenance/management tax costs/royalties that are involved.

And of course they have yet to prove the volumes and longevity of the proposed wells.

The current price of oil certainly won't help.

Basilio,Basilio,Basilio

Read what I said and get your reply to it correct please

1/..... I wasn't told of any number regarding future wells nor did I allude that I had been told, I just used a supposed 500 well figure, it could be 100 or 50 or 20 or 1000. Have you taken a satellite close up look at the territory we are working in ? some eventual 800,000 plus acres with a delivery of one well per 20 acres......WORK OUT THE POTENTIAL, there are gas diggings every where !!

2/.....It was intimated to me that the daily output could be 60 to 80 barrels per well, this will be indicated I presume with the results from Phase 1, ie. 4 extensions of existing gas wells, and Phase 2, ie. 13 new wells. You would think they can work out longevity from yields and pressure measurements. To help you cost things, QPN's advisers estimate costs at US$25 per barrel

3/..... The "expensive build" costs you allude to are ALL costed in the Company announcement

4/..... The price of oil is being manipulated by Saudi Arabia to stifle the growth of oil production in sites in Russia, the USA, Canada etc., they will only keep that up for a while. It is estimated the Saudi need US$95 to balance their books, today's price is only temporary, BUT if you think it is going to be the norm...........SELL YOUR QPN TODAY

You seem to be just concocting repetitive negative situations regarding QPN when answers to your statements and queries have been published ....... give us the courtesy of doing the required and available reading before posting

Svengali

 

[svengali]

Re: QPN - Quest Petroleum

Thanks for your knowledge and financial advice, I appreciate them

Let us know, when the share resumes trading, that you have sold out and are backing your thoughts with action and I hope you do not take to big a hit. If you stay in it would make this last post of yours look pretty hollow but what the heck

A chap I know has bought 30 million heads at .001 in the last week or so, reckless,maybe, but if you are wrong and the Cree tribe/QPN conglomerate succeeds, we will have to contact him in the Bahamas because he will make millions

If a nearby company is knocking out 40,000 barrels a day, and we can grow the company to 500 wells say at 70 barrels per well, (their estimate per well), think about the capitalized value then. There will be no problem raising capital to set up the wells, think about it, say 70 barrels by 330 days @$25 (they a saying the going rate of costs is $25 per barrel, and I'm only claiming a $50 barrel sale price) equals $577,500 annual income per well............cost per well from Phase 3 onwards estimated at $600,000 DO THE MATHS

Using the latest technology it should be recoverable without undue pollution, the Indians think so, Apex Mining think so, the Alberta authorities think so as it is now common drilling practice in the Canadian oil sand belt

As I said let us know the sale of your holding

Svengali

Prawn

Have you sold yet ???????????

Svengali

 

[svengali]

Re: QPN - Quest Petroleum

It will be interesting to see how the Phoenix stacks up after consolidation.

Svengali I am amazed that the Quest management is talking about 500 wells at 70 barrels per well a day as being the basis of their plan. That is one expensive build in the far north of Canada. Just cannot imagine how it will ever do more than cover the quite significant development/ maintenance/management tax costs/royalties that are involved.

And of course they have yet to prove the volumes and longevity of the proposed wells.

The current price of oil certainly won't help.

Basilio

Did you read RED IS THE NEW BLACK from DAILY RECKONING as I suggested yesterday, that should guide you as to the longevity of the Saudi manipulation of the oil price

Svengali

 

[svengali]

Re: QPN - Quest Petroleum

Basilio

Did you read RED IS THE NEW BLACK from DAILY RECKONING as I suggested yesterday, that should guide you as to the longevity of the Saudi manipulation of the oil price

Svengali

To followers of this QPN thread

We are dealing with a Cree First Nation group who have had an active gas production operation for 25 odd years and still have 23 producing wells as we speak. Phase 1 in our immediate plan is to re enter 4 or more of the tribes closed down gas wells

Roll on

Svengali

 

[basilio]

Re: QPN - Quest Petroleum

Svengali you are clearly totally sold on this deal and over the fullness of time we will see what sort of real return is accrued to shareholders.

I don't expect to change your mind but in this forum I try to bring the range of experiences I have had investing (and mostly losing) money in spec oil explorers. It's not necessarily for your benefit; really its sharing perspectives for all readers who can take on board what they wish.

 

[svengali]

Re: QPN - Quest Petroleum

Svengali you are clearly totally sold on this deal and over the fullness of time we will see what sort of real return is accrued to shareholders.

I don't expect to change your mind but in this forum I try to bring the range of experiences I have had investing (and mostly losing) money in spec oil explorers. It's not necessarily for your benefit; really its sharing perspectives for all readers who can take on board what they wish.

Basilio

At last, after a few weeks, your position has finally become clear and I commend you for your honest announcement

Not once did you put forward ANY credible positive evidence, just queries as to the site, the politics and Cree tribe position on the sand mining, the costings, the history of the foray into Indonesia, etc., etc..

Having that attitude is alright and let me tell you I have invested in some interesting "pennies" as well (but in every case they have been in the black at some stage of my ownership), but I firmly believe this play will work

The basis of being with this company now as they head into Canada is their history of being in Indonesia has to be scrubbed out of investors mindset, for a myriad of reasons (yet to be disclosed) the money chewing time spent in that unfortunate country is history. I am the first to say that the information to shareholders was minimal to say the least, extremely disappointing in fact, but I also take solace in the fact that we couldn't, and can't, go headbutting the Sovereign State we reside in.... time will tell the story there

In closing I am not "totally sold on this deal" as you declare, but I am extremely positive on its prospects, and I confidently follow the chairmanship of Gus Simpson, he battled and won against insurmountable odds with PEN in the USA, and this QPN play is chicken feed compared to that saga

Don't be like Prawn and sell out Basilio, sit back and watch it roll on

Svengali

 

[newanimal]

Re: QPN - Quest Petroleum

Anyone know why QPN chart is not currently accessible on ASX? I've seen no notice from QPN or ASF about being in some transitional phase regarding company name change and such.

 

[System]

On December 15th, 2014, Quest Petroleum NL (QPN) changed its name and ASX code to Indus Energy NL (IND).

 

[basilio]

Well the new phoenix is now Indus Energy. It is currently running at .008c which given the 20-1 consolidation means it is less than half the final SP of .001.

It will be interesting to see how management deals with the current crash in oil price. In my view drilling for shale oil in far north Canada with numerous low yield wells at the current price ...... is not going to be profitable. The figures just won't stack up.

 

[svengali]

Well the new phoenix is now Indus Energy. It is currently running at .008c which given the 20-1 consolidation means it is less than half the final SP of .001.

It will be interesting to see how management deals with the current crash in oil price. In my view drilling for shale oil in far north Canada with numerous low yield wells at the current price ...... is not going to be profitable. The figures just won't stack up.

Interesting to see you back again Basilio

I obviously follow IND as I regard it as a sleeper (not yet comatose), but I find your post somewhat disconcerting.

The crash in oil prices, if it continues, is going to bring governments to their knees and wipe them out, companies are going to fold all over the place, oil investors in general are going to be decimated

THIS IS THE USA (and by association Canada) VERSUS SAUDI ARABIA........THE US IS GOING TO MAKE ITSELF SELF SUFFICIENT !!!

Understand, the US and Canada are basically interlinked, the US does not allow export of oil, this is not contrary to international trade, it is in house.

These are bigger issues than we can even contemplate on this site, however let's look at a few of your statements anyway

Firstly the share price of .008 cents is just a total falsehood obviously created by manipulators. Sales for the last 3 trading days number 51 shares, TOTAL VALUE 40.8 CENTS, and you seem to want to use this as worth taking on as significant. I regard the real fact is these are actual no trade days not the end of the world and not unusual, actually for penny dreadful followers this is an rare buying opportunity

You should perhaps do further research on the intentions on IND in Alberta, this is NOT a shale oil play, but an oil sand play, big difference

Reputedly these oil sands from that area can be extracted for some $25 per barrel. Even adding on overheads of say $15 pb the estimated total of $40 pb

IF THE PRICE OF OIL DROPS TO $40 PB LOOKOUT, IF IT GOES TO $20 PB (as has been speculated) THEN BUY UP CANNED FOOD FOR THE LARDER AND A GUN TO DEFEND YOU AND YOURS

Interesting few months coming up

Svengali

 

[basilio]

Svengali your quite right about the impact of an extended period of low oil prices. It would be catastrophic and Indus is but a speck of dust on that issue.

Fair comment on the oil sand vs oil shale statement. I still understand that the costs of extracting oil from the oil sand wells in far North Canada will be substantially higher than many other locations. Which is the point I was making.

The current SP? Sure only a few shares sold but it doesn't look as if serious buyers are wanting to offer more than .008 to .01 at this stage.

I suppose the critical question is if/when Indus management make a statement about where they are going in light of the current oil price. I just can't see any sane oil explorer starting exploration and drills in the current climate.

 

[svengali]

Svengali your quite right about the impact of an extended period of low oil prices. It would be catastrophic and Indus is but a speck of dust on that issue.

Fair comment on the oil sand vs oil shale statement. I still understand that the costs of extracting oil from the oil sand wells in far North Canada will be substantially higher than many other locations. Which is the point I was making.

The current SP? Sure only a few shares sold but it doesn't look as if serious buyers are wanting to offer more than .008 to .01 at this stage.

I suppose the critical question is if/when Indus management make a statement about where they are going in light of the current oil price. I just can't see any sane oil explorer starting exploration and drills in the current climate.

Basilio

I reiterate, costs in the area IND are pursuing with their Cree partners have been estimated at $25 per barrel (bd), now that world oil prices have descended to around $60, and may go lower, there are going to be some hard decisions made all around the world

But IND's position hasn't changed at all in my opinion, they are commencing drilling their Phase 1 and it's initial costs are accounted for, Phase 2 will then commence and that is partially covered, if Phase 1 comes up roses, say 80 barrels per well per day then income for that would be 320 bd @ $60 = $19,200 @ 80%(IND take) = $15360 per day @ 30 days = $460,800 per month

Now if that Phase 1 income proves true, and if Phase 2 brings on 13 more wells with the same income stream then you would have 17 wells @ 80 bd = 1360 bd @$60 = $81,600 @ 80% (IND take)= $65,280 pd @30 days = $1,958,400 per month

These are IND best case figures certainly, BUT HAVE A THINK !!!! (vary these figures as oil goes up or down)

Milewski has posed the question "how would you like to invest in a company that is already producing a profit ?", WELL HERE IT IS, so after the final agreement is signed in mid January we enter the next chapter.

Here is my kicker.

WHAT IF IN PHASE 2, BY HAVING NUMEROUS HORIZONTAL LINES (UP TO 10 PER WELL), THE INDIVIDUAL WELL OUTPUT GOES UP 2 TO 10 TIMES PER WELL. (Do you see one of the world leaders in horizontal drilling, our own Ken Bull, helping advise operations done by Apex Drilling (managed by a large IND shareholder Michael Kamis)

Don't talk about the share price, at this point in time it has nothing to do with the development of IND from where our gains will come from, as I said it is just a buying opportunity

Svengali