Sunday, December 21, 2014

MROs Higher Density Pilots -- December 21, 2014

Back in January, 2014, I posted links to CLR's density projects.

A reader sent me the link to MRO's recent corporate presentation. Marathon also has four (4) operated high density pilots in three major areas: its Myrmidon, Hector, and Ajaz prospects. From my "Snapshot" page:
  • Myrmidon: northwest corner of the reservation
  • Marfa: MRO's largest area; southwest of the reservation; borders the reservation, Dunn County -- Marfa DOES NOT show up on most recent presentation
  • Hector: eastern area of Marfa, just outside of the reservation, Dunn County
  • Ajax: continuation of Marfa, southwest of Marfa, Dunn County
Myrmidon:
  • Brodahl Pilot: 6 x MB; 6 x TF1, 4Q14 spud
  • TAT USA 34 Pilot: 6 x MB, 6 x TF2, 6 x TF2, 1Q15 spud
Hector:
  • Lucy Fleckenstein Pilot: 6 x MB, 6 x TF1, spud August 2014
Ajax:
  • Hecker Pilot: 6 x MB, 4Q14 spud
By the way, if you do visit slide 14 at the linked presentation above, the slide says the Myrmido IRR is greater than 60% BFIT.  BFIT: Profit is the amount of revenue remaining after payment of royalty, operating costs, investments, and taxes, including income taxes. A distinction is often made between before-income tax (BFIT) profit and after-income tax (AFIT) profit for analysis purposes.

4 comments:

  1. Either:

    They could not afford a test, or
    A test would ruin their story

    But now, sold stock, money to spare - for a test - maybe.

    The latest from Strata-X

    "The Company intends to use the proceeds from the Placement as follows:

    Drilling, stimulating, if required, and testing up to five low cost vertical wells in the Illinois Basin projects targeting bypassed and/or untested high margin light sweet oil within multiple shallow reservoirs at depths of 750m to 1110m.
    Continued long term testing of the first 'proof of concept' well in the Burkett Oil Field to estimate production declines required for economic modeling of the field.
    Flow testing the first 'proof of concept' well on the Sleeping Giant Gas Project.
    Lease maintenance and general working capital purposes."

    anon 1

    ReplyDelete
    Replies
    1. For newbies: this relates to Strata-X drilling the Sleeping Giant natural gas wildcat wells in North Dakota outside of the Bakken.

      Most recent post: http://themilliondollarway.blogspot.com/2014/12/only-four-more-days-december-19-2014.html

      Also here:

      http://themilliondollarway.blogspot.com/2014/06/curiouser-and-curiouser-getting-closer.html

      Delete
  2. I'm curious about your reference to Marfa - I supported Marathon's office in Dickinson (mapping work) for about 4 years prior to my current 2+ year stint in the finance world. While I haven't kept up with all my old employers have done I've never heard of Marfa, although I'm quite familiar with Hector/Ajax and Myrmidon prospects. I dug back to old investor presentations and didn't find any reference - was Marfa a name MRO used, or another company's designation for a similar area to Marathon's position?

    ReplyDelete
    Replies
    1. There are still two presentations found through google that show "Marfa" in the Ajax/Hector area in North Dakota in an MRO presentation:

      the March 22, 2010, Howard Weil Energy Conference; and,
      the May 21, 2008, UBS Global Oil & Gas Conference.

      Unfortunately I did not save the presentation in which I first saw Marfa (though, I suppose it could have been one of the two listed above).

      The MRO prospects listed in the main body of the post above were a "cut-and-paste" from my "snapshot" page (which I now linked in the post above). I remember very distinctly the day I wrote out that list of prospects, but MRO only showed "yellow" pixels on the map, and did not provide exact acreage. It's possible the Marfa was much smaller than what I thought I saw: even on the presentations from 2008 and 2010 the Ajax/Hector/Marfa are all one yellow area, not clearly delineated. [Having said that, I remember being quite compulsive about getting the prospects correct at that time.]

      It could be my imagination, but when I compare the 2014 MRO presentation, the Ajax/Hector area looks different than the 2008/2010 Ajax/Hector/Marfa area -- but again, it may just be my imagination.

      Regardless, it appears the Marfa is no longer with us (at least in North Dakota).

      Delete

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