Some previous promotions for CDID from February this year were obviously not successful enough, meeting resistance at $0.14. A new third party has now paid $80,000 for a new e-mail campaign, which is set to run the whole week. On Friday CDID closed again at $0.085 for a share and traded below the average number of shares.
The latest press release by the company came out on Friday evening, saying that according to a reserve study on the Cave Pool Unit each well on certain offset leases in the Greyburg formation contains 35.3 MBbls of oil and 35.3 MMcf of gas. CDID announced just recently the acquisition of the Cave Pool Properties, located in Eddy County New Mexico from Blugrass Energy. Further details reveal that the acquired property has 32 wells, which Quad Energy plans to bring back into production in the coming months, along with another 100 potentially new drilling locations.
That first oil and gas project of Quad Energy had its price, however, which has been paid again by its shareholders. Under the purchase agreement the value of the properties has been estimated at $870,000 and the company issued initially to the seller 5 million shares of CDID common stock at a price of $0.10 per share. Further, Quad Energy will assume Blugrass’ debt by issuing to its lenders another 2.5 million shares at the same share price, and the company will additionally assume another debt for $120,000.
According to Quad Energy latest available quarter report, as of December 31, 2010 the company had zero cash and its own debts exceeded $211,500, $169,508 of which due to the shareholders. The common practice in the past to repay loans has been to convert the amounts owed into shares of common stock, and as it seems CDID has yet not found a better way to cope with its debts.
