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Post by Admin on Mar 29, 2015 16:08:08 GMT -7
I would like to invite anyone from Gasfrac, past or present, to jump in here and give us some incite on what has happened. What went right and what went wrong? I am not asking for anyone to break any laws or jeopardize their livelihood but many of our readers have lost a lot of money and deserve at least a brief explanation of what happened and what will likely happen in the future.
Best Regards,
Admin
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Post by oilfieldworker on Mar 29, 2015 18:10:07 GMT -7
I think if you wait a few days, until the process is completed, you'll get some pretty insightful responses. The last employees, except for financial people and a few operations people, are being let go this week.
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Post by Admin on Mar 29, 2015 18:35:53 GMT -7
Thanks oilfieldworker, I would love to hear from Gasfrac's insiders. I have a hard time understanding how a technology like this could not succeed. I know that many of Gasfrac's employees believed as we did that this technology would be successful. There must have been monumental mistakes made.
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Post by oilfieldworker on Mar 30, 2015 8:30:04 GMT -7
I think you will find that the technology was totally mismanaged, from how to actually market it, to poor frac operations, to how the BOD and Executives dealt with US division. I can tell you that management was very aware of these message boards. There was so much drama, bickering, etc. among the executives from Day 1 that the company really never had a chance in its current form and the BOD was so weak and non-diversified that they were basically worthless. It was very much like the fox guarding the henhouse.
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Post by johnspatane on Mar 30, 2015 9:09:23 GMT -7
Thanks for joining this board oilfieldworker. I have been sitting on the sidelines reading all and waiting for something concrete. I too have lost quite a bit that I cannot afford to lose. What are the dates we are looking forward to now, to get more official information ? I am hoping that the buyers will look kindly upon us loyal investors and believers and do whatever is possible to favor us in the future in whatever way they can. I believe that collectively we can be a true asset to the cause and the future business efforts.
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Post by mineralman74 on Mar 30, 2015 12:07:56 GMT -7
I am new to this board. I have been a Gasfrac Shareholder and believer in the technology from the beginning of this Company. Like many of the people on this board, I have lost a lot of money. Like most of you, I am trying to reconcile what the reality of this situation is going forward. All I have to go on is what I see on the Ernst and Young website. There are two documents that are dated 03/26/2015 --(1) Application - Approval of Restructuring Transaction and (2) Order - Court Approval of Corporate Transaction. For those who have not read these documents at least twice, I recommend that you do so. The real answer as to what happens to all of us is in the confidential documents involving the "Term Sheet" or Restructuring Transaction. We will not know any of that until the Court is ready to give it to us. Please allow me to speculate on what the documents could mean to us. Please understand, this is purely speculation. First, I have to ask the question-----Why is Calfrac, a competitor, trying to help Gasfrac restructure under Chapter 11. What do they ultimately gain by doing this?? Under the restructuring agreement, GES LP will purchase assets from Calfrac so they can continue to operate the Company in Canada. For this situation to work out, GES LP must still own the technology. I refer you to paragraph 9 of the Application to Restructure date March 26, 2015 which reads as follows: " Subsequent to the Bid Deadline, The Applicants (Gasfrac) received an offer from Calfrac involving the continuance of the company's business and the restructure of certain of GESI's subsidiaries and its SHAREHOLDINGS pursuant to the Term Sheet. The Term Sheet and the Calfrac APA were entered into by the Applicants on March 20,2015 subsequent to the APA. I read this to mean that Gasfrac shareholders have been given consideration in the restructuring transaction. Only time will tell what kind of consideration that might be. As of today, I am assuming that we still hold shares in GES LP which will be operating in Canada. What about STEP Energy. What are they going to be doing with equipment that was designed for pumping propane gel. If they don't own the technology, this transaction doesn't make sense. Does anybody know if they somehow bought the rights (license) to use the technology?? Could it be possible that the end result here is that Calfrac and GES LP merge and then make an offer to buy STEP Energy?? Is the merger the process in the end that might save us. Am I being too optimistic?? I welcome your comments.
mineralman74 |
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Post by viprgtsr on Mar 30, 2015 13:04:21 GMT -7
I am new to this board. I have been a Gasfrac Shareholder and believer in the technology from the beginning of this Company. Like many of the people on this board, I have lost a lot of money. Like most of you, I am trying to reconcile what the reality of this situation is going forward. All I have to go on is what I see on the Ernst and Young website. There are two documents that are dated 03/26/2015 --(1) Application - Approval of Restructuring Transaction and (2) Order - Court Approval of Corporate Transaction. For those who have not read these documents at least twice, I recommend that you do so. The real answer as to what happens to all of us is in the confidential documents involving the "Term Sheet" or Restructuring Transaction. We will not know any of that until the Court is ready to give it to us. Please allow me to speculate on what the documents could mean to us. Please understand, this is purely speculation. First, I have to ask the question-----Why is Calfrac, a competitor, trying to help Gasfrac restructure under Chapter 11. What do they ultimately gain by doing this?? Under the restructuring agreement, GES LP will purchase assets from Calfrac so they can continue to operate the Company in Canada. For this situation to work out, GES LP must still own the technology. I refer you to paragraph 9 of the Application to Restructure date March 26, 2015 which reads as follows: " Subsequent to the Bid Deadline, The Applicants (Gasfrac) received an offer from Calfrac involving the continuance of the company's business and the restructure of certain of GESI's subsidiaries and its SHAREHOLDINGS pursuant to the Term Sheet. The Term Sheet and the Calfrac APA were entered into by the Applicants on March 20,2015 subsequent to the APA. I read this to mean that Gasfrac shareholders have been given consideration in the restructuring transaction. Only time will tell what kind of consideration that might be. As of today, I am assuming that we still hold shares in GES LP which will be operating in Canada. What about STEP Energy. What are they going to be doing with equipment that was designed for pumping propane gel. If they don't own the technology, this transaction doesn't make sense. Does anybody know if they somehow bought the rights (license) to use the technology?? Could it be possible that the end result here is that Calfrac and GES LP merge and then make an offer to buy STEP Energy?? Is the merger the process in the end that might save us. Am I being too optimistic?? I welcome your comments.
mineralman74 From this, I would think that assets were sold from GES, LP => STEP. Then, GES used the funds to pay down debt and purchase other equipment to keep Gasfrac alive, but why would Balkany allow the company to restructure at his (and our) cost?? Again this does not make sense to me. |
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Post by fastcarkid on Mar 30, 2015 13:30:25 GMT -7
As we have been told by E&Y the company will be making it clear about the facts surrounding the sales etc early April
That means we should hear something pertinent by no later than next week.
Wait on the Fat Lady to sing her final song. We'll then know if any consideration will be distributed to common shareholders.
Vipgtsr: I also have a hard time believing Balkany is bending over and taking it between the CHEEKS, OUCH!!!
Next week will tell it all-------------?
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Post by mineralman74 on Mar 30, 2015 14:02:01 GMT -7
GES LP is the Gasfrac Energy Services Limited Partnership, which is a subsidiary of Gasfrac Energy Service, INC. STEP Energy was the "Purchaser" of the hard assets that Gasfrac owned. Being in Chapter 15 or Chapter 11 bankruptcy allows a company time to restructure so they can continue to operate the business. It appears to me that Calfrac Well Services is providing all the funding for Gasfrac Energy Services, LP, to purchase the needed equipment and operating capital to operate in Canada. The proceeds from the asset sale to STEP are being used to pay PNC Bank and all the other debt that Gasfrac incurred. Gasfrac Energy Services, Inc., is still in business in Canada and we are still shareholders in the company. April 3rd will bring new information that will help to improve our vision. It will be sometime in June before we know where we stand as shareholders. Don't expect to receive any money. If Calfrac ends up owning Gasfrac and their technology then I would expect for my Gasfrac shares to be exchanged for Calfrac shares in a ratio that is fair and reflects the current conditions as well as the value of the technology. I am betting that Julian Balkany is looking at this in the same way. If not, why is he still there??
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Post by gonfish on Mar 30, 2015 18:02:57 GMT -7
Mineralman74, welcome to the board! I have worked with people like Balkany in the past. They don't invest millions in a company and then watch these millions disappear in a few months. Balkany has a plan. I don't know what this plan is but he has a plan. He will come out of this making money. Does this plan benefit us, who knows. Balkany has around $1.75 a share in this company. Either he has a deal going under the table or we common share holders have some money coming. May be I have lost my mind but I think there is at least a small chance that we will come out of this with something.
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Gasfrac!
Mar 30, 2015 19:30:20 GMT -7
via mobile
Post by propfrac on Mar 30, 2015 19:30:20 GMT -7
I'm an employee of Gasfrac and as of this coming Wednesday all employees are being laid off. I love coming on here and reading all the rumors and laughing knowing there is nothing going to happen. Unless it's going to be an April fools joke we will be looking for work elsewhere
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Post by mineralman74 on Mar 30, 2015 19:33:01 GMT -7
Thanks gonfish -- In my opinion, Julien Balkany is the architect of the "Plan" to restructure the company. He wins if he can break even. If he needs $1.75 per share to do that then he will try to negotiate a deal that will allow him to recover $1.75 per share. The deal could involve a stock swap based on Gasfrac Shares being worth $1.75. It could be a stock only swap or possibly some cash and a stock swap. In my view, it will be only a stock swap. So, if Calfrac ultimately ends up owning Gasfrac Energy Services, Inc., based on the restructuring plan and a stock swap based on Gasfrac shares at $1.75 and Calfrac shares at approximately $9.00 then it would take roughly 5 shares of Gasfrac to acquire 1 share of Calfrac. Obviously, this is best case scenario. If this were to happen, Gasfrac shareholders in the aggregate would end up owning
about 12,700,000 shares of Calfrac. Calfrac shareholders would probably reject a deal at this price. They would suffer considerable dilution if Calfrac issued 12,700,000 new shares to pay for this deal. At this point in time this is all pure speculation but I believe there is a good chance that we will end up with shares of the new company. It may not be as good as I described above but it will be better than nothing.
Mineralman74
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Gasfrac!
Mar 30, 2015 19:37:08 GMT -7
via mobile
Post by propfrac on Mar 30, 2015 19:37:08 GMT -7
I should have also stated that it was terrible management along with a certain CEO a few years ago that carelessly spent every single penny we had. I remember when I started we had enough equipment to keep us busy and millions in the bank. Then all of a sudden we had 18 blenders and Chem vans and 60 pumps. There was no reason to get that big that fast. That is what ruined this amazing frac company, technology is great and an amazing place to work
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Post by mineralman74 on Mar 30, 2015 20:14:08 GMT -7
Propfrac - I couldn't agree with you more. Rapid expansion of company assets with a flawed vision turned out to be a company killer.
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Post by gonfish on Mar 31, 2015 4:56:02 GMT -7
Propfrac, welcome to the board and thanks for logging on. I agree that ordering all that equipment was a great mistake. What I can't understand is why revenue steadily dropped for two years. Your comment about bad management must be an understatement.
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