In its initial earnings report for 1Q, 2010, NOG reported net income of 3 cents/share. On May 6, 2010, NOG reported revised earnings of....drum roll, please....4 cents/share. Thirty-three percent (33%) of three is one. Therefore, they were off by thirty-three percent, not twenty-five percent, but either 25% or 33% that's a healthy miscalculation.
I assume one could find the answer to the miscalculation by reading the two earnings statements closely but I don't have time while traveling so will pursue this later, if still interested.
Regardless, NOG continues to be one of several exciting companies in the Bakken.
Wednesday, May 12, 2010
CLRs Hedge Positions
Last time I checked, the price of oil was in free fall from $82 range to $75.
CLR should do just fine. Look at slide 25 of their Credit Suisse Bakken Day presentation dated May 10, 2010.
CLR's hedge positions:
CLR should do just fine. Look at slide 25 of their Credit Suisse Bakken Day presentation dated May 10, 2010.
CLR's hedge positions:
- Apr 2010 - Dec 2010: weighted averages -- $76.00 - $93.43
- Jan 2011 - Dec 2010: weighted averages -- $78.70 -- $92.19
CLR: Rattlesnake Point Eco-Pad
From Daily Activity Reports dated May 10, 2010, and May 11, 2010:
CLR permits:
For more discussion of CLR Eco-Pads, go to sidebar on the right, or click here.
Note: 23-146-96 appears to be in Jim Creek oil field (on the GIS Map Server) but that is only because the lines are approximate on the map (or in error). The very northern slice of 23-146-96 is part of the Rattlesnake Point oil field, although most of this section is in Jim Creek. It is interesting to note that CLR already has an active/producing well in this section, 17088, Bonneville 41-23H, in the NENE sub-quadrant.
CLR also has another active/producing well in the section to the north, 14-146-96: 17089, Bridger 44-14H.
Obviously CLR didn't have to put this Eco-Pad in to save the leases; there must be something of interest here for CLR to put in four wells where there are already two actively producing wells. My hunch, in addition to targeting a second formation, is that CLR will be increasing the number of fracture stimulation stages to see how that compares to older wells with less fracture stages, and will also get a chance to see if multiple wells are affecting EURs of any of the others.
CLR permits:
- 19009, Bonneville 3-23H, NENW 23-146N-96W, 651.
- 19011, Bridger 3-14H, NENW 23-146N-96W, 725.
- 19012, Bonneville 2-23H, NENW 23-146N-96W, 365.
- 19013, Bridger 2-14H, NENW 23-146N-96W, 399.
For more discussion of CLR Eco-Pads, go to sidebar on the right, or click here.
Note: 23-146-96 appears to be in Jim Creek oil field (on the GIS Map Server) but that is only because the lines are approximate on the map (or in error). The very northern slice of 23-146-96 is part of the Rattlesnake Point oil field, although most of this section is in Jim Creek. It is interesting to note that CLR already has an active/producing well in this section, 17088, Bonneville 41-23H, in the NENE sub-quadrant.
CLR also has another active/producing well in the section to the north, 14-146-96: 17089, Bridger 44-14H.
Obviously CLR didn't have to put this Eco-Pad in to save the leases; there must be something of interest here for CLR to put in four wells where there are already two actively producing wells. My hunch, in addition to targeting a second formation, is that CLR will be increasing the number of fracture stimulation stages to see how that compares to older wells with less fracture stages, and will also get a chance to see if multiple wells are affecting EURs of any of the others.
Tuesday, May 11, 2010
American Oil and Gas
AEZ (was bought by Hess; announced in 2010)
2Q10: Operational Results.
NEWS
December 30, 2010: Hess Acquisition of AEZ completed, December 29, 2010.
November 13, 2010: Ramblings on AEZ.
November 13, 2010: AEZ reports another nice well west of Ray.
October 21, 2010: AEZ reports a very, very nice wildcat northeast of Williston.
Original Post
AEZ announces Ron Viall 1-25H comes in with a 24-hour flowback of 2,844 boepd.
Some folks familiar with the Bakken and the initial production reporting are yawning over this news.
But as Mark Twain said, "Whether or not IPs are exaggerated, all things being equal I would prefer my well to have an IP of 5,133 boepd rather than zero boepd."
I couldn't agree more. The AEZ folks, having sold all their Wyoming assets, are now a pure-Bakken play. They have to be happy with this well even if others are not.
From that same press release: "American also reports that the Tong Trust 1-20H well, located in T157N-R96W, Sections 20 and 17, that initially produced 1,421 barrels of oil equivalent per day ("BOE/D") from the Bakken formation, averaged 962 BOE/D during its first seven production days and 652 BOE/D during its first 30 production days."
652*$70 = $1.4 million in the first month. If the well pays for itself in a year, everything after that is frosting on the cake. Actually not "everything," but quite a bit.
Transcripts: CLR, DNR, EOG
I am traveling and thus not able to post as often or as in depth as usual.
I will do my best to keep up, but it will be more difficult. Bear with me.
Denbury (Encore) transcript, 1Q, 2010.
CLR presentation, May, 2010.
EOG presentation, 1Q, 2010.
CLR:
540,000 bbls/well
Cost per bbl: $17(down slightly from cost in 2008, but at high end, $15 - $17/bbl)
Profit per well: 540,000 x $50 = $27 million
Their oil contracts are hedged at $92/bbl
I will do my best to keep up, but it will be more difficult. Bear with me.
Denbury (Encore) transcript, 1Q, 2010.
CLR presentation, May, 2010.
EOG presentation, 1Q, 2010.
CLR:
540,000 bbls/well
Cost per bbl: $17(down slightly from cost in 2008, but at high end, $15 - $17/bbl)
Profit per well: 540,000 x $50 = $27 million
Their oil contracts are hedged at $92/bbl
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