SeekingAlpha.com link here for Triangle.
The contributor mentions he may initiate a position in USEG in the next 72 hours; he/she must be kicking himself. USEG announces two record IPs and stock shoots up 7 percent in early trading today.
Last week, the same contributor highlighted USEG. At that time, he said the same thing -- that he/she might initiate a long position in USEG in the next 72 hours. I suppose it's possible, he/she is talking about two "separate" long positions. If he/she did initiate a long position in USEG last week, the comment today should have been "I am long USEG, and am considering adding to it in the next 72 hours." But I may be misreading things; I go through some of these articles pretty quickly.
If he/she is a trader, a missed opportunity. If an investor, it doesn't really matter in the long run.
Just my 2 cents worth. This is not an investment site. I am not making any recommendations, simply passing on information and opinion. See disclaimer.
Wednesday, March 28, 2012
USGS To Reassess The Bakken
Link here: USGS to reassess the Bakken; results to be known by late 2013.
In 2008, the U.S. Geological Survey estimated the Bakken formation could have up to 4.3 billion barrels of recoverable oil. But they've sent a team of geologists and geochemists back to the Bakken to study rock samples from previous drillings. They normally reassess oil formations after about 10 years, but the Bakken isn't a typical oil formation.I've always said that; it's not the production, it's the lessons learned and ground-breaking technology being tested, studied, and used in the Bakken.
"It's very rare that we reassess this quickly," said Brenda Pierce, the manger of the USGS Energy Resources Program. "The Bakken is such an unusual reservoir and what is technically recoverable really has changed in a short period of time."
Pierce also said their scientists are learning new concepts from studying the Bakken.
"I mean I think it's kind of breaking the way for other potential unconventional oil reserves (and) resources," Pierce said. "I mean it really is world class."
The USGS is using the same methods to survey the Bakken so the results can be more accurately compared to previous assessments. They plan to complete the study by late 2013.
Two Successive Record IPs for Zavanna/USEG Announced -- The Bakken, North Dakota, USA
At Yahoo!In-Play -- item will disappear later today
8:32AM U.S. Energy announces successive record initial production rates from two zavanna wells in the williston basin: Co reported The Wang 10-3 #1H well was fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,208 BOE/D on a 36/64" restricted choke during drillout of the plugs. The initial production rate consisted of approximately 1,942 barrels of oil and 1.6 MMCF of natural gas. The Company has an approximate 18% WI and 14% NRI in this well. The Wang well began production on March 15, 2012.
Yahoo!Finance link here, the press release:
15695, 80, Zenergy, Lassey 1-15H, s9/05; t11/05; cum 32K 1/12; short lateral, running northwest to southeast
8:32AM U.S. Energy announces successive record initial production rates from two zavanna wells in the williston basin: Co reported The Wang 10-3 #1H well was fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,208 BOE/D on a 36/64" restricted choke during drillout of the plugs. The initial production rate consisted of approximately 1,942 barrels of oil and 1.6 MMCF of natural gas. The Company has an approximate 18% WI and 14% NRI in this well. The Wang well began production on March 15, 2012.
Yahoo!Finance link here, the press release:
USEG today reported the initial production rate on the Wang 10-3 #1H well and the Crescent Farms 7-6 #1H well under its drilling program with Zavanna, LLC.Locations:
Williston Basin, North Dakota - Yellowstone Program:
The next two wells which have drilled to depth in this program and are scheduled to be fracture stimulated in April 2012 are;
- 20094, The Wang 10-3 #1H well was fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,208 BOE/D on a 36/64" restricted choke during drillout of the plugs. The initial production rate consisted of approximately 1,942 barrels of oil and 1.6 MMCF of natural gas. The Company has an approximate 18% WI and 14% NRI in this well. The Wang well began production on March 15, 2012.
- 20105, The Crescent Farms 7-6 #1H has also been fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,437 BOE/D on a 36/64" restricted choke during drillout of the plugs. The initial production rate consisted of approximately 2,178 barrels of oil and 1.5 MMCF of natural gas. The Company has an approximate 27% WI and 21% NRI in this well. The Crescent Farms well began production on March 22, 2012 and represents the highest reported IP rate for a Zavanna drilling program well to date.
"We are pleased to announce the successive record IP results of the Wang and Crescent Farms wells with Zavanna. These two higher interest wells coupled with the two additional scheduled for the month of April should add meaningfully to our production for the second quarter of 2012," stated Keith Larsen, CEO of U.S. Energy Corp.
- 20093, The Skorpil 11-2 #1H well, in which the Company has an approximate 23% WI and 18% NRI.
- 20000, The CDK 15-22 #1H well, in which the Company has an approximate 32% WI and 25% NRI.
- The Wang well is located south of the river, southeast of Williston, in Glass Bluff oil field.
- The Crescent Farm well is located it the same township. about three miles directly west of the Wang well.The Skorpil well is about one mile due east of the Wang well.
- The CDK well is just a few hundred feet south of the Wang well, on the south side of the section line. The Wang well runs due north; I assume the CDK will run directly south.
15695, 80, Zenergy, Lassey 1-15H, s9/05; t11/05; cum 32K 1/12; short lateral, running northwest to southeast
National Average for Gasoline: $3.90
Top story at Yahoo!Finance.
The price of an average gallon of regular gas surpassed the $3.90 mark Wednesday, moving to within a dime of the $4 threshold. [Comment: I'm glad Yahoo provided this arithmetic calculation; the math can get complicated as one approaches $5 gasoline.]Earlier: my thoughts on average price of gasoline across the nation, and the price that the average American is paying.
The average price rose 1.3 cents to $3.911 in the latest daily survey conducted for the motorist group AAA. The price has risen for 19 consecutive days. [And for Noah, it rained 40 days and 40 nights. Consecutively.]
The current price compares to just below $3.70 a month ago, and just below $3.59 a year ago. [For all the chatter, this is about a dime's difference and we survived last year just fine.]
****************
Perfect storm:- Chinese and Indian imports rising significantly year-over-year
- Keystone XL killed
- Iranian sanctions take 2.5 million bopd off the global market
- analysts unsure Saudi can make up the Iranian shortfall
- administration continues to slow-roll the domestic oil and gas industry
- two, maybe three, refineries close in northeast (US), near Philadelphia; accounts for 50% of regional gasoline
- winter-to-spring transition at refineries (different stories; some say it's already underway; others say bulk of changeover occurs in April)
- glut at Cushing won't be relieved for months, maybe one to two years
- Japan shuts down 53 of 54 nuclear reactors; the 53rd shut-down was for maintenance; Japan increased oil imports
CLR To Purchase 37,900 Net Acres in the Bakken -->953,763 Net Acres in the Bakken for CLR
From In-Play -- will disappear later today.
7: 02AM Continental Resources to Purchase 37,900 Net Acres in the Bakken Play With 2.5 MBoe Average Daily Production for $340 mln:The purchase price of $340 mln is anticipated to result in the issuance of between 3.90 mln and 4.25 mln shares of Continental Resources' common stock, subject to customary purchase price adjustments. The number of shares will be determined based on a 20 day average of the daily sale prices prior to closing of the transaction. The average daily price determination will be subject to a floor of $80.00 per share and a ceiling of $87.18 per share. Wheatland's assets include 37,900 net acres in the North Dakota and Montana Bakken play and interests in more than 1,000 gross wells, with net proved reserves of 17 MMBoe (mln barrels of oil equivalent) as of year-end 2011 and production of 2.5 MBoepd (thousand barrels of oil equivalent per day) in December 2011.
Reuters link here.
Back-of-the-envelope data points:
The question is raised: would Harold Hamm have to put in blind trust/divest of CLR if he takes cabinet position in new administration?
7: 02AM Continental Resources to Purchase 37,900 Net Acres in the Bakken Play With 2.5 MBoe Average Daily Production for $340 mln:The purchase price of $340 mln is anticipated to result in the issuance of between 3.90 mln and 4.25 mln shares of Continental Resources' common stock, subject to customary purchase price adjustments. The number of shares will be determined based on a 20 day average of the daily sale prices prior to closing of the transaction. The average daily price determination will be subject to a floor of $80.00 per share and a ceiling of $87.18 per share. Wheatland's assets include 37,900 net acres in the North Dakota and Montana Bakken play and interests in more than 1,000 gross wells, with net proved reserves of 17 MMBoe (mln barrels of oil equivalent) as of year-end 2011 and production of 2.5 MBoepd (thousand barrels of oil equivalent per day) in December 2011.
Reuters link here.
The assets include 37,900 net acres in the North Dakota and Montana Bakken play and interests in more than 1,000 gross wells. The assets produced 2.5 thousand barrels of oil equivalent per day as of December 2011.Net acreage approaching 1 million acres in the ND and MT Bakken.
Continental said it expects to issue between 3.90 million and 4.25 million shares to fund the purchase price.
Back-of-the-envelope data points:
- $9,000/acre without the 1,000 gross wells.
- Based on reserves: $340 million/million bbls --> $20/bbl based on reserves
- 2,500 boepd * $50/bbl --> $125,000/day on current production (production declines; price of oil varies); one year --> $46 million
'Wheatland is owned 75% by the Revocable Inter Vivos Trust of Harold G. Hamm, of which Harold Hamm is sole trustee and beneficiary, and 25% by Jeff Hume. Mr. Hamm is Chairman of the Board, Chief Executive Officer and the majority shareholder of Continental Resources. Mr. Hume is President and Chief Operating Officer of Continental Resources.'Elwood opines (at the link): CLR could be "positioning" for acquisition.
The question is raised: would Harold Hamm have to put in blind trust/divest of CLR if he takes cabinet position in new administration?
Subscribe to:
Posts (Atom)