NOG: 12 cents/share.
Production increases 235 percent over 2Q 2009.
NOG's business model is different than KOG's model.
I have no idea how the retail investor can set a value on these companies. Today, for example, retail investors are willing to pay $3.00/share for a company who just earned one cent/share this past quarter and will soon issue more shares. For NOG, retail investors are willing to pay $16/share which earned 12 cents per share this past quarter.
I'm just thinking out loud -- coffee talk -- nothing more than that since Amtrak gives me the time to ponder (and enjoy incredibly beautiful scenery, and probably a free night in Chicago).
One company is probably "stuck" with the acreage it has, and really can't buy more. It needs cash just to drill the leases it already has. Someone said earlier their is no risk of oil companies losing their leases due to lack of activity/production, but KOG did face bureaucratic delays before the reservation was finally opened up. To conserve cash, KOG needs to partner with others , and I assume partners would pick and choose which wells and how much to offer.
NOG, on the other hand, has no acreage to worry about. NOG gets to pick and choose with whom it wishes to partner. NOG can go with companies that have a better success rate, and/or they can go with companies not constrained by delays in fracking.
NOG has some debt on it's books; KOG has none according to Yahoo!Financial.
It will be very interesting to follow these two relatively small, relatively pure Bakken plays over the next few years.
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Monday, August 9, 2010
Blackouts in US Increasing
Blackouts in US increasing.
More to follow. I'm on Amtrak where I've just found the 7 percent of the US that ATT does not cover. I'm on my iPad.
More to follow. I'm on Amtrak where I've just found the 7 percent of the US that ATT does not cover. I'm on my iPad.
KOG: So Much For "Great Financial Shape"
At end of conference call, KOG spokesman said the company was in great financial shape.
Others questioned that, pointing out KOG was burning through cash so quickly, it risked being bought out or having to raise more cash by issuing more shares.
Today, Monday, Auguat 9, 2010, KOG announces it will issue more shares.
Others questioned that, pointing out KOG was burning through cash so quickly, it risked being bought out or having to raise more cash by issuing more shares.
Today, Monday, Auguat 9, 2010, KOG announces it will issue more shares.