Wednesday, May 12, 2010

NOG: Never Mind

In its initial earnings report for 1Q, 2010, NOG reported net income of 3 cents/share. On May 6, 2010, NOG reported revised earnings of....drum roll, please....4 cents/share.  Thirty-three percent (33%) of three is one. Therefore, they were off by thirty-three percent, not twenty-five percent, but either 25% or 33% that's a healthy miscalculation.

I assume one could find the answer to the miscalculation by reading the two earnings statements closely but I don't have time while traveling so will pursue this later, if still interested.

Regardless, NOG continues to be one of several exciting companies in the Bakken.

CLRs Hedge Positions

Last time I checked, the price of oil was in free fall from $82 range to $75.

CLR should do just fine. Look at slide 25 of their Credit Suisse Bakken Day presentation dated May 10, 2010.

CLR's hedge positions:
  • Apr 2010 - Dec 2010: weighted averages -- $76.00 - $93.43
  • Jan 2011 - Dec 2010: weighted averages -- $78.70 -- $92.19

CLR: Rattlesnake Point Eco-Pad

From Daily Activity Reports dated May 10, 2010, and May 11, 2010:

CLR permits:
  • 19009, Bonneville 3-23H, NENW 23-146N-96W, 651.
  • 19011, Bridger 3-14H, NENW 23-146N-96W, 725.
  • 19012, Bonneville 2-23H, NENW 23-146N-96W, 365.
  • 19013, Bridger 2-14H, NENW 23-146N-96W, 399.
[Update: results of these wells in the January 12, 2011, daily activity report, reported in red above.]

For more discussion of CLR Eco-Pads, go to sidebar on the right, or click here.

Note: 23-146-96 appears to be in Jim Creek oil field (on the GIS Map Server) but that is only because the lines are approximate on the map (or in error). The very northern slice of 23-146-96 is part of the Rattlesnake Point oil field, although most of this section is in Jim Creek. It is interesting to note that CLR already has an active/producing well in this section, 17088, Bonneville 41-23H, in the NENE sub-quadrant.

CLR also has another active/producing well in the section to the north, 14-146-96: 17089, Bridger 44-14H.

Obviously CLR didn't have to put this Eco-Pad in to save the leases; there must be something of interest here for CLR to put in four wells where there are already two actively producing wells. My hunch, in addition to targeting a second formation, is that CLR will be increasing the number of fracture stimulation stages to see how that compares to older wells with less fracture stages, and will also get a chance to see if multiple wells are affecting EURs of any of the others.