Update on DKRW's Outlook on Natural Gas

April 9, 2010: Still no response from DKRW.

March 21, 2010: Update: I have not heard back from DKRW after asking about their outlook for natural gas which is the first thing one sees on their home page:

"The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States and Mexico. With so much of our energy infrastructure and industry tied directly to natural gas, it is necessary to identify and deliver more competitive supply options in order for the US and Mexican economies to grow."

March 16, 2010: I sent my inquiry to DKRW on March 15, 2010. On that same date they acknowledged receipt; to date no response.

 
Hangin' On the Telephone, Blondie / ABBA

*****

Is it just me or do others find this opening statement at their home page by DKRW confusing?

"The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States ..."

Everything I read suggests just the opposite, specifically: North America is swimming in natural gas; and, the price of natural gas continues to deteriorate.

Just after I posted the above, I came across this link: energy companies moving away from natural gas.

"IPs Don't Mean Anything"

I have to chuckle. I don't know how many times I have read on other sites that "IPs don't matter."

Today, EOG reported that Wazyetta 102-02H, the Parshall field, #18301, had an initial production (IP) of 68 barrels of oil per day. I wonder if those who have mineral rights associated with this well agree that IPs don't matter.

There are at least four EOG wells within half a mile of this well, with IPs in red:

17028, 2,207, Wayzetta 14-02H, Lot 4 2-153-90
17078, 1,706, Austin 25-35H, SESE 35-154-90
17281, 1,797, Wayzetta 13-01H, Lot 4 1-153-90
18301, 68, Wayzetta 102-02H, Lot 2 2-153-90 (reported today)

Different formation? Was this a Three Forks Sanish? Was this an exploratory well of some sort to be turned into a saltwater disposal well? Note the "102" designation. It's been reported to be a TFS well. EOG has opined that they don't expect TFS to be particularly productive in the Parshall, and there is also a possibility that the driller missed the target -- these are narrow formations.

Regardless, I still think IPs have some relevance. As Mark Twain used to say, "All things being equal, I would rather have a well with an IP of 5,133 bopd rather than zero (0) bopd."


No Milk Today, Herman's Hermits -- looks like no oil today, either, for Wayzetta 102-02H -- "the end of my hopes, the end of all my dreams"

BEXP Share Offering Over-Subscribed: 16 million new shares

BEXP share offering over-subscribed. Initial offering was 13 million; then to 14 million. An additional 2 million sold: total -- 16 million+.


MONY, MONY, Tommy James and the Shondells -- or is it, "Money, Money"?