Quickstart     Cashflow File     Day     Participation     Other Financiers    Map     Oil Rights     Well Depths     Partnership     Dealmaker

  Shotgun Agreement     Running in the Red     Bankruptcy     Share Price     Corporate Position     Fast Track     Winning

  Leaving the Seminar  Hostile Areas  Subsidies  Joint Ventures  Administrator  Drilling Contractor  Rig Move Cost  Depletion

  Expiry of Rights  JV Leader  JV Drilling Decision    Posting Land    Waiving Extension Fees 

Bankruptcy...

Bankruptcy in OilFinancier occurs when your share price drops below $0.01. If this happens to you, you will be resurrected in this seminar with $100,000 in cash and your Trainee's Salary.

You can then participate as normal. Hopefully, you will have learned something useful as the financier of a previously bankrupt oil company.

While you are making good deals that provide the best combination of risk, reward, and utility, here are some hints to prevent you from having your share price go through the floor:
  • If you have a positive cash balance, your share price can never fall below $0.01.
  • If you have a cash flow of $2,000 per day, you will be able to put yourself $50,000 in the red and not go bankrupt.
  • If you have a cash flow of $5,000 per day, you will be able to put yourself $150,000 in the red and not go bankrupt..
  • If you have a cash flow of $20,000 per day, you will be able to put yourself $700,000 in the red and not go bankrupt.

Bankruptcy and Buying a Drilling Rig

With these numbers, it seems that buying a drilling rig in the first part of the seminar (which puts you $100,000 in the red) would immediately bankrupt you. However, the $200,000 you spend on the rig will be counted as an asset to be depreciated over time. In other words, buying a drilling rig will not put you under. In fact, it should increase your share price a little.

 

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