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August 09, 2007


Thanks for dropping the reactionary stuff and providing some meaningful insight into the O&G business. Great article. You are a smart guy with some good experience. Give us more!

Dear Savant at Open Choke:

That was fantastic. Obviously you "get it." You pulled together a lot of things I have observed.

BIG QUESTION: What if I can identify the 150 sections but don't have $38MM? Who will finance something like that, and how?


Promote it! See what you can tie up on an option basis... Mezzanine financing for acreage on an all-in drill deal is still available... you will still have to expose yourself to some $5-$10 mil, but you raise that from the standard non-op investors after you get the acreage deal done. Folks will do acreage deals IF they can be paid back quickly and get a 30-50% of your position going forward...

Natural gas is a gas consisting primarily of methane. It is found associated with fossil fuels, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills. It is an important fuel source, a major feedstock for fertilizers, and a potent greenhouse gas...

Nice article.....I really impressed while reading your post.....Thank you so much , it will useful to every one....

Now that you can drill from cash flow, refinance your Mezzanine to Bank finance, you have an asset of a scale to do so. Drill it all up, have a bunch of free cash flow to live the life of Riley with little exposure, and sell it to a company that is sure that it can drill it on 160 acre spacings.

If you read my mind like that! As I stated in an e-book, or what ever you use signed, it is obviously a lot to understand. But I think, however, and may in a few posts to be getting a house done, it's a great blog. Happy reading. I will definitely be back.

Thanks for the post. It's usefull for me.

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