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Trading BKP: Its history

Discussion in 'Shares' started by wdongli, 21st May, 2011.

  1. wdongli

    wdongli Well-Known Member

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    Seriously saying when I bought BKP at $0.005 I didn't know it too much as that when I bought FDL, PRR, IAU, SSN, AZZ, LEG, VCR, and so on. However once some of them became falling knifes or new swan corresponding to my paid price, I would do more work on them. Why? It is my belief that once something is shot up into the sky or thrown into the hell, there are some fundamental causes to drive it. SSN and AZZ let me know the shale oil and gas, and Bakken basin. Now I know Australia has the area similar to Bakken where BKP is playing.

    Although the future events are the decisive forces for all of market swans and fishes, the history is valuable to get the insight and could give us some clues where some fall down onto the ground and some shoot up to the sky and never come back to the rocket launching stations where we hope them could take us to the sky.

    It is time to know BKP's history in some depth!

    ***
    BKP was incorporated on 11 February 2005 in Australia. It listed on the ASX on 25 May 2005 and was involved in oil and gas exploration in Mauritania.

    Tenements were relinquished in Mauritania in 2009. It was very bad 4 years and destroyed 99% of the value for its shareholders the. A true falling knife as my IMI does now!

    These shareholders have all of the right curse BKP even now or maybe when BKP would get the shale oil in huge size. Something if gone are just gone. Crying or cursing make us fell better but that is all!

    ***
    However BKP and actually all of mining minnows are venture explorers in the future uncertainties and market turbulence for their own legends! Why do you come to the market? Why don't you come to the office and then happy to get the salaries only but spend your time here? We are sort of dreamers for something we could not get in the offices and workshops.

    In mid-2009, a newly appointed board lodged a prospectus for a capital raising of $2 million as well as signing a farm-in agreement with Northern Territory Oil to earn 75% of Exploration Permit 127 (EP 127) and Exploration Permit 128 (EP 128) in the Georgina Basin, onshore Australia.

    1. EP 127 comprises an area of 15,780 square kilometres and EP 128 comprises of 15,970 square kilometres and are two granted exploration permits.

    2. EP 127 and EP 128 cover 7.4 million acres (31,750 square kilometres) in the south central part of the Northern Territory, to the south east of Tennant Creek and the north east of Alice Springs. EP 127 is 50 kilometres north of the Plenty Highway. EP 128 follows the path of the Sandover Highway, an all weather road.

    3. Baraka’s acreage partially surrounds PetroFrontiers Corp. (TSX-V: PFC) EP 103, and EP 104, and together all four permits cover 13.6 million acres over a very large, unconventional oil and gas exploration play.

    Could you see it is a story about rebirth? Australia market is a place for minnows since it is the tradition of mining industries due to its high-risk and high return future. Do you know something about Andrew Forrest and FMG? Andrew failed in Anaconda Nickel Ltd and were thrown away by its biggest shareholder then. To understand the minnows and how they become swans you need to read http://www.fmgl.com.au/IRM/Company/ShowPage.aspx?CPID=1226. Don't criticize others too much but think how could you get some good ideas and insights from them.

    ***
    Recent Georgina Basin transaction history

    In April 2010, AEC, an unlisted company entered into an agreement with Baraka, to farm-in for a 50% working interest and operatorship in EP 127 and EP 128. In December 2010, AEC acquired an additional 25% interest in these blocks from Northern Territory Oil for $2 million in cash and securities.

    Under the agreement, AEC has to commence drilling one well on either EP 127 or EP 128 and is to be drilled to completion to a minimum of 500 metres of horizontal drilling into the Basel Arthur Creek “Hot Shale”.

    In November 2010, AEC obtained a Ryder Scott Petroleum Consultants resource evaluation that estimated unrisked, prospective oil resources to be 27.5 billion barrels (P50, gross acreage) from both unconventional and conventional targets in the Georgina Basin permits.

    ***
    After this agreement, Baraka owned a 25% interest in the two exploration permits (EP 127 and EP 128) as well as a 75% interest over 18,533 acres that form a 5 kilometre radius around the previously drilled Elkedra-7 well, which produced hydrocarbon shows in the past.

    PetroFrontier resulted from the merger of AEC and Pendulum Capital Corporation in October 2010 and owns a 75% interest in EP 127 and EP 128 as well as 50% interests in EP 103 and EP 104. Adding spice to the resurgent exploration interest in the Basin, PetroFrontier undertook a public offering in January 2011 by way of a Reverse Takeover and raised C$58.5 million at C$2.00 per share.

    PetroFrontier has further attempted to consolidate ownership of exploration permits in the Georgina Basin with a proposal in March 2011 to acquire another Canadian listed company Texalta Petroleum (TSX-V:TEX.A) which owns a 50% interest in EP 103 and EP 104.

    This will consolidate 100% ownership by PetroFrontier in EP 103 and EP 104 (removing a drilling “roadblock”) which are adjacent to EP 127 and EP 128 where Baraka holds a 25% working interest in each permit.

    Net proceeds of the public offering by PetroFrontier will fund its six-well exploration program into second half of 2011, and the acquisition of up to approximately 1,000 kilometres of additional 2D seismic.

    ***
    In March 2011, Baraka changed its name to Baraka Energy & Resources Ltd. The principal activities of Baraka are the exploration and development of oil and gas assets, with initial focus on the Georgina Basin in the Northern Territory.

    However, these activities may be extended into other energy and resource projects as Baraka is currently assessing a number of potential new projects to diversify their assets. (wdongli: strategically and logically it should try to get some profit generation asset to use its tax losses and diversify it for a balanced and stable future exploration as I try for my asset portfolio).
     
  2. Tropo

    Tropo Well-Known Member

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    ......there are some fundamental causes to drive it......

    hahahah...:p:p:p ....fundamentals = funnymentals:rolleyes:

    It is time to know BKP's history in some depth!

    Who gives a pink elephant about it ...:eek::eek::eek:
     
  3. wdongli

    wdongli Well-Known Member

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  4. wdongli

    wdongli Well-Known Member

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    By the way, the portfolio must be rebalanced. I have done most of job on rebalancing. As results, I bought 4,000,000 RAU at $0.004/0.005, 3,400,000 RSN at $0.003, 2,000,000 MDV at $0.005, and 1,700,000 CHM at $0.006 since I felt they were sold on fire too much!

    Which would shoot up? I don't know. Some would die and some would reborn. The weather would change; the correction would stop; China and US would not tip off and stay in the sink forever; Who could be right? it is not what I could image until something happen. I have to do the right things I believe now and wait for the reckoning.

    Tropo maybe is right that BKP is a funnymetal, actually anything could happen but if it is not it would change all around it. Actually before FDL, PRR, IAU, AZZ, FMG shot up, all they looked like ducks, acted like ducks, and sounded as ducks! The only question is could you afford to wait?

    FDL said so. PRR said so. FMG said so. SSN said so. Too many dirty cheap fishes in the past but swans today said so! Could your fundamental or your systems tell what you should do roughly right in the future? If not or it made you lose your shirts in GFC, you should throw them away!

    Market playing is art. Hold one system or fundamental popular in the past would prepare the funeral for your capital! I don't do business this way!
     
    Last edited by a moderator: 22nd May, 2011
  5. wdongli

    wdongli Well-Known Member

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    “The object is not to determine exactly what earnings may be realized as of some specific data in future, but rather to arrive to as achievable within a future period of time,” said Benjamin-Dodd.

    1> it is not to determine exactly what earnings in future
    2> but rather to arrive to as achievable within a future period of time

    “It would be a serious mistake to think that all the fact that describes a particular investment are or could be known. Not only many questions remain unanswered; all the right questions many not even be asked. Even if the present could somehow be perfectly understood, most investments dependent on outcomes that cannot be accurately foreseen” said Seth Klarman.

    1> it is serious mistake
    2> if you think all the fact in a investment could be known
    3> Many questions remain unanswered
    4> all the right questions may not even be asked
    6> Present could somehow to be understood
    7> future cannot be accurately foreseen.

    So try to get roughly right not absolutely wrong always in the market.

    More thought in wdongli - Member Blogs
     
  6. Tropo

    Tropo Well-Known Member

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    Dude...
    IMHO you are a walking folklore...;)
     
  7. wdongli

    wdongli Well-Known Member

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    Haha tropo, everyone could make his own legend, small or big, and he should.

    People tend to look down you when you work for you legend without matter what you do when you are small. Don't feel shame if you could make your legend or folklore which will instill the happiness and passion for what you want to get. We need to dance on tap to work for our personal legend. I don't want too much but between my 50s - 80, I want to remake my life. So I just re-educate myself.

    Could what I buy make killings? It is not important but no loss first by buying extremely low with good enough margin of safety! It is first rule in my fundamental book! Do you want to remake yourself and to be a market master in your circle? We need competence in our own circles in the market? What's your circle? My circle at moment is dirty-cheap fishes, which belong to distressed value investing area in the market or Casio. To win in this circle I do hope I could know better than anyone else in the market.

    Every way could lead us to Rome or the hell! Who you are or what you do or how you do or why you do or where you do or when to hold'em or unfold'em, are more important than which way you are. It is a life logic I have got in my experience. Am I a walking folklore? I think I am and everyone has his own folklore even others always look down them, which is acceptable if you have dreams.

    Let's dance on tap for our walking folklore. Why not?
     
  8. wdongli

    wdongli Well-Known Member

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    By the way, no loss don't mean you never lose any cents to buy and sell a security. It is impossible. It is a strategic objective for every year and all of your years in the market.

    What if you lose every year? Something wrong with you! You have to stop, check your mind not your system which is died duck if you are hopeless, update your mind, get the competence advantage to develop your franchise, and then restart slowly and carefully. I did stop in 2001 until the mid of 2004 since I lost my shirts in IT bust. It helped me to buy extremely low before, during, and after GFC. It let my dirty-cheap fish portfolio passed through the acid test of GFC. It helped me to stay steadily on the upward trend in V-shape recovery.

    ***
    Actually my current rebalancing is to prepare for the next acid test in the market. Everyone could have reasons to lose but I could not. I hate the losses and hate the stop-loss! I hate to lose in the glory with a glory system in hand. If fundamental makes the losses but funnymetals make the profit in long term I would choose funnymetals. They are just names of some ideas or ideologies. If they work for you, they are valuable; if not they are craps and should be in hell!

    GFC have changed the market prospective greatly. The number in each trading forum drops down too much. My last trading forum now only have 2 or 3 regular posters. Why? Most of us jumped into the market since IT revolution and we assume the tech revolution would give us the money without charges and catches. Now the trend is gone and in the ruins they found they don't have the capital cloth to cover their poor bodies.

    ***
    I have to admit I was a loser in IT crazy time. I am a walk folk who could make silly mistake. However I don't dare forget what Einstein said something like:

    If you repeat what you do but hope different results, you are insane.

    Am I insane? So far it seems not. I have played my dirty-cheap fishes for 6 years with the same objective, no loss, never make loss, and never forget no loss. I want to be a value based market player or a businesslike market player first. I will keep the same objective and do all for this objective in the market. What did I do when I really want to be a excellent Engineer long, long time ago?

    It was the passion and dream to drive me and let me enjoy to be educated as an Engineer first. Did you find anyone could be an Engineer but refuse to be educated as an Engineer? Should I go to a short cut and grip one system for easy money in the market if I want to be a winner in the market? It would not work for any walking folk and then me.

    ***
    Is life about the change; Is good life about the change in your desired direction and way?; Is the market a dream land or slaughter table for your capital?; Could you make it your dream land as Australia I wanted to go after I finished my R/D project in Europe 20 years ago? The root to win or lose in the market is in your world and market views and philosophy.

    Do you think you have a right one for your market playing? I still could not say I have a right one for the market. So I have to work for it. What about the skills? They are important but if you have a wrong view, you would destroy your money much quickly and efficiently if you system could work efficiently and effectively to make the losses and stop-losses. How many genius who believe they hold excellent system have fallen down in the ruins of the burnt money?
     
    Last edited by a moderator: 22nd May, 2011