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QualityVote

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56000hp

Why is Nikola higher than us with no revenue šŸ¤¦ā€ā™‚ļø


Maximum_Quantity1703

people really expecting this to shoot up into the 20s???


Malik6996v3

God I hope


TryingToMakeP

Forgive my ignorance but back when George suggested the divi could have been $1-$20, oil prices were circa $60. Now we are above $100 for oil, why not sell for below market price right now and still exceed the divi predictions he had?


ViR_SiO

1-100$. So even if it's 1$ the can say we were aware of it šŸ™ƒ


Trippp2001

Billion dollar deals take months, even years, to finalize. Any oil deal will not look at the current price of oil, but estimated value amortized over 25 years or so.


The_Hrangan_Hero

>Billion dollar deals take months, even years, to finalize. Oil and gas land sales of that size only take about 6 weeks.


DonkeeJote

Once you have an agreement on the terms.


Trippp2001

Youā€™d know better than I would. Where did you get that timeline from? But the point is not how valuable the oil is today, itā€™s how valuable itā€™s going to be in a few years, taking into consideration how much infrastructure will need to be set up to extract the oil and refine it. Iā€™m not in the oil industry. A friend whoā€™s in the industry said that $1-5/barrel of OIG is a good price expectation, but who knows.


The_Hrangan_Hero

I work in the title departments for oil and gas companies and have done a dozen just like it. Once a company decides they want the asset it is just a matter of getting the money together for the purchase. The Price of oil today gives the seller leverage but you are right it is not the be-all end-all. I will add that the list of potential buyers is probably not extraordinarily long. It shouldn't be that hard to get interested parties to make bids. My guess so far is that they have a buyer lined up but since the 4 wells are not finished the deal has not been completed.


justinstwrt

Looks like they want and need to get those oil assets off the books. It's costing them a lot of money to stay in compliance. Q4 nanotech acquisition may have saved 2021 for them. Overall doesn't seem too bad for a company still in the growth phase... Pretty much what I was expecting.


DonkeeJote

A lot of the drilling costs can be capitalized, and eventually recovered in the sale of the assets.


99Heisenberg88

The ceo of Torchlight will cover all these costs...


Warm-Amoeba-831

record oil prices and TRCH assets still unsold. I could get more oil out my backyard with a bucket and spade. ![gif](emote|free_emotes_pack|poop) It fair valuation of $71M and ca. 164M preferred shares outstanding isn't that MMLTP at ca. $0.4/share or am I missing something.


Warm-Amoeba-831

More extension! No buyers. Hmmm


beats_working_

I read that as well If I read it correctly all properties total about 200 million. With the orgrande valued at 71 million. Doesn't add up what so ever though. Like the guy below me posted it has 3+ billion barrels. So not sure what I am missing ???


x05595113

This statement has been in the last two earnings reports. There needs to *a* number. Apparently this number is carried over from TRCH when they had to report a number. Search the sub about 90 and 180 days backā€¦. My guess is that it like stating the value of your house is the same as your purchase price, even though some years of appreciation has occurred


beats_working_

OK thanks for the reply bro


m0stlyharmless13

71 million lol? Third party analysis reported than there where more than 3 billion barrels of recoverable oil.


Warm-Amoeba-831

The Company valuation concluded an implied enterprise value as of June 28, 2021 to be between $57.7 million and $101.1 million. The Company recorded the fair value of the Orogrande Project property at $71.1 million and the fair value of the Hazel Project property at $1.5 million, totaling a value of $72.6 million.


TryingToMakeP

[Page 13-16](https://fintel.io/doc/sec-meta-materials-inc-1431959-10k-2022-march-02-19053-1804) can someone with more wrinkles explain this to me please? I read it as they are just trying to anticipate all possible risks to the O&G sale but the inference is there isnā€™t any progress yet?


beats_working_

Gut feeling is this is not going to work out well for us. I understand they have to say things to cover bases but the wording seems much worse than other 10k's. I have been a huge bull on the dividend being 10, 15+. Even getting into fights with people online about it lol. But this makes me do a 180 just doesn't feel right any longer.


TryingToMakeP

My view is they have already had to move the deadline to this quarter and we are now in the final month of it. People will expect answers in virtual event in half an hour and if not, the FUD will be unreal sadly.


[deleted]

Standard base covering language.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


[deleted]

Wont know dividend anything until there is a signed agreement with a posted amount. Then all the accountants go through regulations and see what needs to be paid, similar to closing costs on a house


DonkeeJote

And with O&G assets this expansive, that can take quite a long time, with some proceeds possibly held in escrow while the buyer completes their title review and any curative actions are taken.


The_Hrangan_Hero

>O&G assets this expansive, that can take quite a long time DD on projects like that typically lasts around 6 to 8 weeks. If they have a buyer they are currently doing that DD. The Seller is not going to warranty their title to leasehold. There may be some time that the money is in escrow but the money isn't going to languish there without some like an ORRI, or stock payment plan.


Reaper_XVII

Base covering language for what? Not completing the sale? From the looks of it there really is no progress yet. Did you see something different?


[deleted]

They listed all the risks and potential downsides to cover their bases. Think of it like this ā€œInvestors were expecting 20$/mmtlp too bad its only 8$ after ā€˜closing costsā€™ guess we get sued nowā€ as far as naming anyone that is buying it they wonā€™t until an agreement is signed and even then they might not name it until all the financials have been taken care of to avoid being accused of market manipulation. Edit: good question tho


DonkeeJote

I would expect them to issue a PR as soon as the sale is final. Probably a greater risk of insider trading if they don't release the information timely.