Updates
December 20, 2012: regarding Gulfport (see below); from Yahoo! In-Play --
Gulfport Energy announces acquisition of additional Utica acreage, provides 2013 production guidance: Co announced that on December 17, 2012 it entered into a definitive agreement to purchase approximately 30,000 net acres in the Utica Shale in Eastern Ohio for approximately $302 million. The parties have now amended that agreement to provide for Gulfport's acquisition of approximately 7,000 additional net acres for approximately $70 million, resulting in a total acquisition price of approximately $372 million. The transaction, which will increase Gulfport's leasehold interests in the Utica Shale to approximately 137,000 gross (106,000 net) acres, excludes 14 existing wells, along with certain acreage surrounding each well. The proposed transaction is expected to close prior to year-end. Gulfport will continue to serve as operator of its acreage in the Utica Shale.December 19, 2012: add this to the mix of stories below. Statoil has just announced it acquired 70,000 acres in the Marcellus. $590 million. "Liquid-rich part of the Marcellus." $8,500/acre. Rivals the prices paid for the Bakken. One certainly does not get the feeling that the price of oil is going to trend down, nor that the demand for oil is going to trend down.
Original Post
Gulfport Energy Corp (GPOR): Gulfport acquires some Utica acreage -- Motley Fool.
With the amount of expansion currently under way from companies in the Utica shale, particularly the very oil-rich western section in Ohio, it's looking like the region could become the next Bakken. And Gulfport (NASDAQ: GPOR), one of the top oil companies in 2012, has just upped its stake in the area by 30,000 acres, at a cost of $300 million. In this video, Motley Fool energy analyst Joel South takes us through some of the plans the company has for the new land, and how much the capital expenditures required for the growth are going to cost.Magnum Hunter (MHR): Why MHR popped -- Motley Fool. Popped about 10%.
UBS initiated coverage on the stock with a buy rating and a $6 price target. That gave investors enough to jump in today even though there wasn't any significant news from the company.Richest oil play in the US (ERF): Motley Fool.
... energy analyst Joel South discusses Enerplus' recent decision to sell its valuable oil assets in Manitoba for $220 million in order to reduce its debt as well as expand its working interest in the company's Sleeping Giant play in the Williston Basin. At 4.2 times annual funds flow, the increased position in the Williston provides Enerplus with tremendous value in additional to centralizing its operations. Enerplus also see additional benefits from this light oil play with infill drilling in addition to using enhanced oil recover techniques to increase production.Evergreen Energy (EVEP) -- SeekingAlpha.com -- Utica shale for a 50% discount.
One company that's well positioned to benefit from interest in the Utica shale is EV Energy Partners, an upstream Master Limited Partnership with a $2.5 Billion market cap. EVEP currently holds a vast working interest in the Utica shale, which it plans to sell because the speculative nature of the play makes it inappropriate for a distribution-focused MLP. As we'll see, the market has priced EVEP's Utica acreage far below its likely sale price. A sale that even comes close to previous prices gives EVEP enormous upside potential.BP set to join "gold rush" in the Utica -- Columbus Business First --
BP Plc has started moving into its new operations center in the Youngstown area, signaling that the world’s mega-oil companies are coming to Ohio to drill for oil and natural gas in the Utica shale play.
BP said Monday it plans to begin drilling operations in eastern Ohio as early as January.PDC Energy (PDCE): up 2.3% on a day when the market is down.
Rex Energy (REXX): five commodity stocks moving on news -- SeekingAlpha.com.
Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read at this site. "Anon 1" some a short note and listed many of these companies as seeing a lot of action: either share prices popping or headlines of activity. If you scroll these and go back to the links, one starts to see a number of dots that might be worth connecting.
Again, I, personally, am not interested in these companies as investments. I don't invest in any of these listed, and have no plans to do so. I am interested in these because a) readers generally have some interesting insight to stories that I miss; and, b) they put the Bakken in perspective.
The Utica is braking out as an a new play for oil and gas. The interesting part is this taking place in the economic destroyed rust belt or close to it. I may be wrong but this will most likely developed before the Niobrara.
ReplyDeleteThe only qualifier I would put on it is the anti-hydrocarbon development attitude that resides just to their east on the east coast. Though the east coast would be the main benefactors.
Youngstown, OH has got to be enthused about BP headquartering there. Like Detroit they have been almost totally destroyed economically. It seemed like there was no hope. It would be to their advantage to greet this opportunity with a positive attitude. Otherwise it will be a race to the bottom with Detroit.
Agree completely.
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