(Updated 28 Jun 2011 6:00 AM)
Gateway Resources U.S.A., Inc. Gateway Resources Ltd. Blaine Exploration Ltd.
Gateway Oil & Gas, Inc. Blaine Development, Inc. Hanks Oilfield Services, Inc.
Bartlesville, Oklahoma
28 June 2011
Here I am at the end of another accounting year. Notably 4 months ahead of last year. But as usual the forecast is uncertain, as it has been for the last 3 years. Is a double dip recession on the way, or how about an oil price collapse? I don't know how we would weather either case, but I've just been taking things a day at a time and trying to do my best with what I have to work with.
Last October we were pretty used to $70 oil and were limping along with all the wounds from the two years before. Then oil prices began rising in October and continued rising through April of 2011 as they peaked at $110. Subsequently they have lost over $22/BBL and are struggling to stay in the $87 range. Of course the doom and gloom of the economy, loan defaults by countries, and now the IEA attempting to manipulate oil markets by dumping oil on the market all are threatening to wipe out all the price gains for a bbl of oil. Perhaps I felt a short time of peace from March through May, but now I am concerned again that things are going to get rough. Gladly we have retired some debt. A number of loans have matured and have been paid off. A number more will mature and be gone by year's end. If oil prices don't fall too far, perhaps by the start of 2012 we will be in a bit better shape. I ran out of credit in 2011 pretty much shutting down the concept of expanding the company through debt. Now the only credit we will have is what we gain as we pay down our credit lines first.
My axiom this year has been: "There is no such thing as spare time nor is there any spare money". So I work as much as I can and try to spend as little money as I can. Time off is few and far between and I need every drop of cash to service debt. I really haven't been able to pursue any "new" projects. I have been focusing on getting some of the repairs badly needed done. Also I have been working to streamline our accounting system, including writing new software aimed at liberating some of the man-days I spend on the books and be able to shift that time to other efforts. I would have to say I am about as up to date on accounting as I have ever been.
Unlike last year it nearly July and the accounting is done for the year, I DON'T have a 9 month back log in accounting for the subsequent year. Projects are slowly getting done in the shop and we are maintaining production at reasonable levels. If we can just dodge impending the oil price collapse things will be getting better.
Monthly Net Oil Sales ==> Charts
Financial Statements
Consolidated CND$ US & CAN Gateway Resources Ltd ==> Charts :) Report
Gateway Resources Ltd ==> Charts :) Report
Gateway Resources USA ==> Charts :) Report
Blaine Exploration (Canada) :) Report
Blaine Exploration (USA) :) Report
Hanks Oil Field Services, Inc. :) Report
Gateway Oil & Gas, Inc. :) Report
Blaine Development, Inc. :) Report
Putting a new roof on the office Prepping the roof My blowout
"Shadow" the new mascott A beautiful fall day on the Sarcoxie Lease Grass fires run wild on our Copan leases
The new roof A beautiful Oklahoma sunset Pulling the engine on our 89 Ranger
So cold it cracked a gear box -30 deg F Hey this is too much snow! Never had to snow plow into a rig before
A new drip for Khan TJ & Me getting a little dirty #1 Grandson SJ pays a visit at the rig
Yea! ditch witch is fixed and back to work building a line for Brown 7A Putting the new engine in the 89 Ranger
We took the tractor to Joplin, Mo and helped clean up debris Jun 17-19. Oh yes we slept in a tent.
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