Wells Coming Off Confidential List This Week -- July 1, 2017

Friday, July 7, 2017

• 30786, 40, Crescent Point energy, CPEUSC Fairholm 5-27-28-164N-100W, West Ambrose, 4 sections; target: Three Forks Unit 5 / Three Forks Unit 6; TVD, 7,862 feet; TD, 18,280 feet;

Thursday, July 6, 2017

• 27445, 766, EOG, Parshall 158-20H, Parshall, one section, 22 stages, 7.6 million lbs, t1/17; cum 54K 5/17;
• 32887, SI/NC, Enerplus Wasp 150-94-11C-12H, Spotted Horn, no production data,
• 33164, SI/NC, Statoil, Russell 10-3F XW 1H, Painted Woods, no production data,

Wednesday, July 5, 2017

• 27444, 335, EOG, Parshall 78-20H, Parshall, one section, 24 stages, 8.6 million lbs, pt1/17; cum 22K 5/17;

Tuesday, July 4, 2017

• 32516, SI/NC, XTO, Lundin 11X-15F, Siverston, no production data,
• 33165, SI/NC, Statoil, Russell 10-3 2H, Painted Woods, no production data,

Monday, July 3, 2017

• 32515, SI/NC, XTO, Lundin 11X-15AXB, Siverston, no production data,
• 32886, SI/NC, Enerplus, Ladybug 150-94-11C-12H-TF, Spotted Horn, no production data,

Sunday, July 2, 2017

• 31324, dry, Crescent Point Energy, CPEUSC Aldag 5-26-25-164N-100W, West Ambrose, no production data,
• 31638, SI/NC, XTO, lundin 11X-15EXH, Siverston, no production data,
• 33166, SI/NC, Statoil, Russell 10-3 3H, Painted Woods, no production data,

Saturday, July 1, 2017

• 31136, SI/NC, Newfield, Jorgenson Federal 148-96-10-15-11H, Lost Bridge, no production data,
• 31637, SI/NC, XTO, Lundin 11X-15A, Siverston, no production data,
• 32441, 1,073, Nine Point Energy, Little Muddy 23H, Williston, 31 stages, 4 million lbs, producing,
• 32885, SI/NC, Enerplus, Beetle 150-94-11C-12H, Spotted Horn, no production data,
• 33167, SI/NC, Statoil, Russell 10-3 4H, Painted Woods, no production data,

************************************

32441, see above, Nine Point Energy, Little Muddy 23H, Williston:

te	Oil Runs	MCF Sold
5-2017	14685	0
4-2017	12981	2668
3-2017	21686	0
2-2017	28694	0
1-2017	12823	0

27444, see above, EOG, Parshall 78-20H, Parshall:

Date	Oil Runs	MCF Sold
4-2017	5683	4432
3-2017	5344	3023
2-2017	5050	3380
1-2017	2126	1348

27445, see above, EOG, Parshall 158-20H, Parshall:

ate	Oil Runs	MCF Sold
4-2017	8335	3744
3-2017	11329	6422
2-2017	9354	4721
1-2017	13787	5830

30786, see above, Crescent Point energy, CPEUSC Fairholm 5-27-28-164N-100W, West Ambrose:

Date	Oil Runs	MCF Sold
5-2017	5325	2510
4-2017	2468	1150

The Political Page, T+162 -- July 1, 2017

One has to assume that President Trump has read this story in The New York Times about France's new president: Emmauel Macron.

It's All About The RINS, No Doubt -- July 1, 2017

From biomassmagazine:

Tesoro oil refinery in Dickinson, North Dakota, has plans to co-process renewable feedstock along with regionally sourced Bakken crude oil to produce a 5 percent renewable diesel blend. Construction is planned to begin in October with start-up expected in December. 

Some data points:

• Tesoro acquired the Dakota Prairie Refinery in Dickinson last year
• capacity: can refine 20,000 bbls per day
• renewable feedstock: regionally sources soybean oil and distillers corn oil from ethanol plants
• Tesoro has applied for a $500,00 grant through the NDIC
• capacity: up to 16,800 gallons per day of renewable feedstock
• the total cost of the project: $3.5 million

It's all about the RINS:

As an obligated party under the federal Renewable Fuel Standard, Tesoro indicated the project’s motivation is the increased environmental value of renewable diesel under the RFS.

“The co-processed renewable diesel will generate about 1.7 D5 RINs per gallon,” the refiner stated. “The current market value of a RIN is approximately $1 per RIN.”

The company said the results of this project will help determine the potential for a larger future renewable project at the Tesoro Dickinson Refinery.

Reminder: Tesoro will change its name to Andeavor on August 1, 2017.

Richard Zeits' Analysis Of Carrizo's Recent Permian Acquisition -- July 1, 107

Link here to SeekingAlpha.

Summary:

• The Permian acquisition, while not inexpensive, improves the stock's risk/reward profile
• Divestitures will streamline the portfolio. The loss of the resource base will be compensated by the stacked-pay upside in the Permian
• Growth profile is unchanged in the near term and is more sustainable in the longer term.

Richard Zeits' observation regarding the price of the acquired property:

The acquired properties are of excellent quality but come at a high price, in-line with other comparable transaction in this specific area. Including the contingent payment, which I value for illustration at ~$75 million, the implied valuation is $33,000 per undeveloped acre.

My estimate is substantially higher than the $22,300 per acre metric provided by the company in its presentation (the company's estimate appears to exclude the contingent payment and is based on a somewhat arbitrary multiple of flowing production).

This is a great article to archive to see how one values the price paid for oil-producing assets.