So, I have to pick and choose. I apologize. I'm missing some big stories.
Devon buys 50,000 shale acres for $249 million. Reuters reports over at Rigzone:
Devon Energy Corp on Tuesday said it acquired 50,000 acres and some production in the Cana-Woodford Shale in Oklahoma for $249 million in cash from Cimarex Energy Co. The deal includes current production of 5,800 barrels of oil equivalent per day, Devon said.I follow the Woodford here.
For newbies: CLR calls its southern extension of the Cana-Woodford the SCOOP. Could that be one reason (of many) why CLR is trading at a 52-week high today?
Wow, the news coming out of the oil patch today is incredible. A reader mentioned President Obama's speech on global warming yesterday and then noted that it's snowing in North Dakota and will snow again in the ancestral home of the Sioux over the next 24 hours or so. I wrote back:
It's great to be back where I can get caught up in the news, etc.Back to Devon and the Woodford. $250 million divided by 50,000 shale acres: $5,000/acre. A steal. It included almost 6,000 boepd = a cool half-million dollars / day, or about 180 million dollars a year. Of course, my math may be off.
With regard to global warming, he is simply talking to his base. But I do believe, the movers and shakers are not listening to him or his policies any more. He is doing everything he can to keep Benghazi and ObamaCare off the front page. That's fine with me.
I think every day, Obama becomes more and more irrelevant to more and more people.
The market, and especially, oil and gas, are surging. Can you believe the market today? I'm thrilled.
I don't think it will, but the Dow could easily hit another high by the end of the week, and oil is up 1.3% at the moment. Who would have thought?
By the way, how is renewable energy working out? Not so good in India.
Bloomberg reports:
Suzlon Energy Ltd. , the wind-turbine maker responsible for India’s biggest convertible-bond default, reached an agreement with investors to restructure $485 million of notes.
The board has approved the deal to issue new five-year convertible bonds maturing in the financial year ending March 2020, Pune-based Suzlon said in an e-mailed statement. The conversion price has been set at 15.46 rupees, it said.
They will be step-up bonds, meaning the coupon rate will rise over the five years, and the yield will average out to approximately 5 percent, according to the statement.
The deal is “an optimal solution to our last remaining piece” of a program to reduce liabilities, Kirti Vagadia, head of finance of the Suzlon Group, which also owns German offshore turbine maker Senvion SE, said in the statement.
The agreement with bondholders follows a year and a half of negotiations prompted by the company’s failure to repay $209 million of notes in October 2012. That default also triggered a clause allowing holders of a further $265 million of 2014 and 2016 bonds to demand immediate repayment.This is a most telling story. Again, Reuters is reporting that despite the prospects of war in the Ukraine, the sanctions, political in-fighting within the EU, Europe simply cannot afford wind energy. Read the Reuters article. It's a long article. But while reading it, ask yourself, if wind energy is such a great solution, why is Austria willing to risk relations with the EU and a war in Ukraine bargaining with Russia for side deals on natural gas instead of getting with the program and going "renewable." Cause it's too expensive.
On days like this I wish Sam Kinison was/were still alive (adult language):
Perhaps this could be the theme song at the Democratic convention when Barack, or Bill, or Hillary, or whoever, comes up on stage for another global warming speech:
Play it loud. And look at those cupid lips. Andy Warhol considered Debbie Harry the most beautiful woman alive at that time. Or maybe one of the most beautiful. I don't remember the quote. Of course, Andy did not know my wife in 1973.
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