The Daily Activity Report For Wednesday, February 6, 2019, Has Just Been Posted

At 11:25 a.m., yesterday's daily activity report was posted. It should be noted that a couple of the "test dates" were incorrect. But substantively:

Change of operator: approximately 203 wells were transferred from Enduro Operating to Cobra Oil & Gas ... more on this later. 

One can find permits/wells in North Dakota operated by Cobra Oil & Gas at this link.

From PLS a year ago: 

Enduro signed a $45 million stalking horse PSA with Cobra Oil & Gas Corp. for the sale of long-lived conventional Madison waterflood assets in the Williston and Big Horn Basins in North Dakota. Enduro entered North Dakota in mid-2012 with its acquisition of Ward Williston Oil Company assets. The Ward Williston assets consisted of 162 wells on about 30,000 net acres mostly HBP acres in Renville, Bottineau and Burke counties. Wichita Falls, TX-based Cobra......

Enduro filed for bankruptcy about a year ago. Link here. 

Bloomberg here on Cobra.

Pretty good story at the Ft Worth Star-Telegram.

Enduro Resource Partners, an oil and natural gas exploration company founded in 2010 by the prominent Fort Worth father-and-son team Jon Brumley and Jonny Brumley, has filed for bankruptcy reorganization as the company prepares to sell its holdings in six states.

The company has been "undermined by persistently low oil and gas prices during the past several years," Kimberly Weimer, Enduro's chief financial officer, said in the documents, filed in Delaware Tuesday. Enduro's debt, she said, "became insurmountable."

Enduro has oil and gas properties in Texas, North Dakota, Louisiana, New Mexico, Wyoming and Montana.

Enduro sank $26 million more into the company in 2016, but it wasn't enough. The company was unable to restructure its debt.

By September 2017, Enduro realized it wouldn't be able to pay $208.7 million owed to Bank of America by March 30 of this year. It also owes $141.2 million to Wilmington Trust.

The company will continue to operate as it sheds its assets. The petition includes five Enduro subsidiaries and affiliates. It does not include Enduro Royalty Trust, a publicly traded Delaware trust formed in 2011.

In September 2017, Enduro sold some of its oil and gas properties in the Permian Basin in Texas and New Mexico for $49.1 million. In January, the company started the sale process. The properties are divided into four packages. Enduro has already secured stalking horse bidders for three of those packages. Those bids would bring $96.6 million.

Read more here: https://www.star-telegram.com/news/busine/article211327564.html#storylink=cpy

Read more here: https://www.star-telegram.com/news/business/article211327564.html#storylink=c ************************

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Atmospheric CO2

Link here.

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The Book Page

The imaginary number, i, has always fascinated me. I was talking to an aeronautical engineer some years ago who was working on solutions for both Airbus and Boeing, which was interesting by itself. This aeronautical engineer always thought it was funny that airplanes would not fly were it not for the imaginary number, i, that keeps popping up in equations.

From Genius: The Life and Science of Richard Feynman, James Gleick, c. 1992, page 174:

For Feynman, thinking in his spare time about the pure theory of particls and light, diffusion dovetailed peculiarly with quantum mechanics. The traditional diffusion equation bore a family resemblance to the standard Schrödinger equation; the crucial difference lay in a single exponent, where the quantum mechanical version was an imaginary factor, i. Lacking that i, diffusion was motion without inertia, motion without momentum.

Individual molecules of perfume carry inertia, but their aggregate wafting through air, the sum of innumerable random collisions, does not. With the i, quantum mechanics could incorporate inertia, a particle's memory of its past velocity. The imaginary factor in the exponent mingled velocity and time in the necessary way. In a sense, quantum mechanics was diffusion in imaginary time.

The importance of diffusion? When developing the atomic bomb, from page 172:

The calculation of critical mass quickly became more or less than a calculation of diffusion -- the diffusion of neutrons through a strange, radioactive minefield, where now a collision might mean more than a glancing, billiard-ball change of direction. A neutron might be captured, absorbed. And it might trigger a fission event that would give birth to new neutrons. 

By definition, at critical mass the creation of neutrons would exactly balance the loss of neutrons through absorption (or through leakage beyond the container boundaries).