Lets have a brief look at Paco Oil and Gas (paco petroleum)
This research comprises of around 1 man hour. All information has been sought readily from the internet from reputible firms. The summary is comprised from years of investing and full time working in the stock industry and although every effort has been made, some errors may remain. (as this is a brief outline and not extensive I would ask for people not to pick holes in the odd bit of info, most if not all is factually correct).
I have done this research so that others can review and feel free to do any cross examination or extensive research before parting with their cash in this company.
This is a recent statement regarding there Olsen Lease:
Full article from Reuters:
Paco Oil and Gas Inc. First Olsen Lease Well Near Production; Company Makes Preparations to Service All Wells on Olsen | Reuters
SHERMAN, TX, Jan 10 (EDIT: 2008) (MARKET WIRE) --
Paco Oil and Gas Inc. (PINKSHEETS: POGC), an exploration company focused on
purchasing under valued oil and gas leases, announced today that the company
expects the first well located on the recently acquired Olsen lease
properties to be in production by the end of January 2008. At present, there
are 6 wells (uncompleted) on the 105 acre properties located in the county of
Washington Oklahoma ready for re-completion. Paco Oil and Gas is in the
process of developing the necessary tanks and infrastructure to be capable
and prepared to service all wells located on the Olsen property. Preliminary
testing on the wells revealed recoverable oil in all 6 wells. The company will
report on all progress through regular press releases.
paco petroleum
Now every well produces (on average) 20 barrels of oil per day, as per paco's webpage:
paco petroleum
"The average Oklahoma oil well now produces about twenty barrels per day".
These appear to be dead wells that have been financially exhausted, paco appear to be sucking up the dregs.
The Olsen site comprises of 105 acre plot with 6 wells as per the Reuters report stating:
"At present, there are 6 wells (uncompleted) on the 105 acre properties located in the county of Washington Oklahoma ready for re-completion."
Paco Oil and Gas Inc. First Olsen Lease Well Near Production; Company Makes Preparations to Service All Wells on Olsen | Reuters
Be aware of the words "(uncomplete)" and "re-completion", which means they were active but now unfit to use.
Now although 'tests' have shown that oil is recoverable in all 6 wells we must bear in mind that there is NO infrastructure to the 105 acre olsen property.
This means:
Paco Oil will have to process the developing necessary tanks and infrastructure to be capable and prepared to service all wells located on the Olsen site.
Now lets look at the summary:
Paco oil and gas (pacopetroleum)
Lets assume that ALL the infrastructure needed is built for free.
Lets assume that ALL 6 wells DO produce oil.
Lets assume that ALL 6 wells produce 20 barrels per day as estimated.
Lets also assume that barrels are sold at $100.
Lets assume that there is NO production costs, labour, certificates, standard investigations or clean up costs. Lets also take out transportation, wages, company files and accountants, lets also remove tankers, equipment, maintenance, warehouses, storage and materials. Lets forget about leasing costs, office rental and equipment, advisors, meetings and licenses.
Lets also assume they pay NO tax and get FULL payment with NO loss and NO refining.
Lets assume that these wells remain to produce 20 bbrls per day for ever without delays, holdups, accidents, shutdown periods for maintenance and investigations for licenses for oil quality and contamination.
Lets also take out all 'in house' wages, secretaries, cleaners, website designers, public speakers, directors and of course, 'shareholders'.
Although the above is NOT possible, we will use this as a firm example of where the company is headed.
6 x wells @ 20bbrls per day every day = 43,800 bbrls per annum. Not exactly what we're looking for from an investment opportunity.
43,800 x 100 = 4.3 million USD or aprox just over £2m GBP - Not enough to float the company nor are there prospects strong enough to do so on an alternative investment market.
Now type in their address into google earth and see where it takes you. Hardly what you expected right?
718 Highway 82 East.
Sherman, Texas.
USA 75090
This is taking on board the information that I have readily found and would always advise investors doing their own due diligence before investing. This is the bear minimum of work you should do before taking the next step as to research the company before investing, this is only scratching the surface. This post does not constitute as investment advice and should be seen as information only.
Now ask, should I have done even the basic evaluation before parting with my hard earned cash.
Stop listening to strangers on the phone selling you stuff.
How many people in Sherman, Texas have invested? They can see more than us and view the offices. What about people on the ground nearby, have they invested? Why do people ask for foriegn money in far away lands? Maybe it's because it would cost us more in time and effort as well as money to track them down and is not financially viable to take them to international court hearings should anything be afoot.
It's generally a lot easier to take a few thousand from thousands of people than millions from one person.
Please note: this information has been provided to you for free.
My View: Find something else to throw your money and time at.
Lee Shepherd's credentials:
Micro Stock investor for 10 years prior to moving into indices on a macroeconomic level over 4 years ago. I use a multitude of technical analysis with a huge array of fundamentals.
My trades can be witnessed on my blog on my profile page.
Lee Shepherd.
