30% is not trivial.
CNBC: "Operations in Europe no longer economically sustainable."
Shares halted in trading pending announcement. Will probably open higher.
For investors, CNBC says this stock sold at one time for $320/share; now around $20/share. Unless I misheard what they said.
Natural gas around $2.00.
Tuesday, April 17, 2012
President Obama Announces Initiative To "Curb" Oil Futures Speculation -- Needs Congressional Action
His proposal: larger government -- increase the oversight of the free market system
Earlier this a.m. oil was up about 80 cents, prior to the speech.
At noon, oil is up about $1.65, following the speech.
Talking heads on CNBC suggest, and I agree with this, "speculators" don't care what the absolute price is; they are looking for volatility. Take away the "speculators" and the volatility goes away, and price of oil would probably trend higher over time, with less volatility.
Investors and mineral owners would benefit. At least that's the 30-second soundbite from the CNBC talking heads. I don't know about all of that, but there's no question "speculators" want volatility; absolute price doesn't mean a whole lot to them.
Update On A Great Oasis Three Forks Well in the Sweet Spot of the Bakken
128,000 bbls in four full months of production
Sweet spot of the Bakken
A Three Forks well
- 19946, 1,474, Oasis, Spratley 5494 34-13H, Alkali Creek, Three Forks, s5/11; t10/11; cum 128K 2/12; 4.4 million lbs sand/ceramic frac, cased hole.
This is a huge well.
Spud 5/11; tested/completed 10/11: IP= 1,474
Cumulative: 127,518 bbls after only four full months. First month was 15 days of production. Something is going on with the well in February: on-line only 3 days, and production only a thousand bbls.
- Oct, full month: 42,000 bbls
- Nov, full month, 28,000 bbls
- Dec, full month, 21,000 bbls
- Jan, full month, 21,000 bbls
On a pump.
Located right in the sweet spot of the Bakken.
Huge well for a Three Forks.
I was somewhat surprised to see the amount of ceramic used: 2.7 million lbs ceramic; 1.7 million lbs sand. My understanding is that in the short term, not much difference between sand and ceramic in effectiveness; long term ceramic much better.
Geologist's comment:
- the lateral target zone of a ten (10) foot section of the Three Forks Formation situated 34 to 44 feet below the bottom of the Lower Shale of the Bakken Formation. The curve was landed .... approximately 34 feet below the Lower Shale of the Bakken Formation
- total background gas levels averaged ~975 units with common peaks ranging from ~1,400 to 1,800 units with rare peaks ranging from ~2,050 to ~2,160 units for approximately first 4,750 feet of the lateral section. Total background gas levels elevated ~1,650 units with common peaks ranging from ~2,200 to ~2,500 units during the remainder of lateral section.
Denbury Provides Operations Update
Link here.
First quarter production estimates include 33,257 barrels per day of tertiary oil production, a 7% increase from that in the fourth quarter of 2011, and 15,114 BOE/d of Bakken production, a 29% increase from fourth quarter of 2011 levels. Sequential growth in tertiary oil production was primarily driven by new tertiary floods at the Oyster Bayou and Hastings fields, and a sooner than anticipated production response at Tinsley Field. By field, tertiary oil production estimates for the first quarter of 2012 are 877 Bbls/d at Oyster Bayou, 618 Bbls/d at Hastings and 7,297 Bbls/d at Tinsley. Bakken production growth was the result of the Company's drilling program and favorable winter operating conditions in that area. Updated information on individual Bakken well performance is provided in today's presentation.
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