Tuesday, July 15, 2014

For Investors Only -- July 15, 2014

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or what you think you may have read here. I'm posting this for reasons other than investment advice. 

The price of oil has fallen fairly quickly the last few days and has now broken below $100 (WTI crude).

Shares in Bakken operators have similarly fallen back, and some quite significantly.

Following the WLL-KOG announcement, Bret Jensen over at Seeking Alpha suggested Oasis and Emerald could be takeover targets.

From the blog, a quick look at Emerald:

Emerald Oil (VOG acquires Emerald Oil, announced July 11, 2012) (chronological; most recent data at top)
Small, small operator.

Enterprise value about $470 million.

$470 million / 70,000 acres = $6,700/acre in some pretty nice areas in the Bakken.

Whiting Reports High Background Gas Units At the Mork Farm Wells In Pleasant Hill Oil Field

Simply idle chatter:
  • 26023, 2,213, Whiting,  Mork Farm 24-8-2H, Pleasant Hill, no frack data; gas averaged 4,139 units and peaked at 9,995 units; t6/14; cum --
  • 26024, 2,532, Whiting, Mork Farm 24-8H, Pleasant Hill, no frack data, gas as high as 5,761 units, t6/14; cum --
  • 28089, 1,856, Whiting, Mork Trust 21-17-7H, Pleasant Hill, no frack data, background gas averaged 2,587 units and peaked at 8,609 units; t6/14; cum --

Playful Joke Or Is Newfield Naming Their Own Fields In The Bakken?

Where best to drill a "barracuda" well? In the Aquarium oil field, of course. Unfortunately, to the best of my knowledge there is no "Aquarium oil field" in the Williston Basin.

From the Newfield geology report, Barracuda 150-100-11-2-3HR (#25994): "... subject well is being drilled in the Aquarium Field, located 1 mile north of Arnegard, McKenzie County, North Dakota ..."

According to the NDIC GIS map server, the well, in fact is in the Sandrocks oil field. Newfield's report noted the Aquarium oil field numerous times.

So, it begs the question: what about the other two Barracuda wells on the 3-well pad -- what do the reports say for these two wells:
  • 25455, also being drilled in the "Aquarium oil field," according to Newfield
  • 25457, also being drilled in the "Aquarium oil field," according to Newfield
I have not seen a request from Newfield to change the name of this field to the Aquarium Oil Field but perhaps that is coming.

Elsewhere in the immediate area, but not on the same pad:
  • 18205, Manta Ray -- also  drilled in the Aquarium oil field --
  • 20155, another Barracuda well -- also drilled in the Aquarium oil field

Tuesday -- July 15, 2014; Global Warming In North Dakota; Portland, OR, To Impose Tax On Breathing

Global warming: from the US National Weather Service --
This is still July right? Here are the lows this morning through 730 am CDT (North Dakota):

Hettinger: 36
Tioga: 37
Glen Ullin and Watford City: 39
Dickinson: 40
Hazen and Fryburg: 41
Bowman and Center: 42
Williston: 43
Bismarck: 46
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Active rigs:


7/15/201407/15/201307/15/201207/15/201107/15/2010
Active Rigs193186215178132


RBN Energy: more big consumers buying into natural gas production.

The Wall street Journal

Top story: fighting continues to rage in the Mideast.

Two more US pharmaceutical companies unveil foreign mergers to help them slash tax rates.  US stands to lose billions from corporate-tax inversions.

California expected to order mandatory statewide water restrictions for the first time, as a prolonged drought across the West shrivels reservoirs.

Photo-op: US flies 38 to Honduras in expedited deportation. 38 out of 60,000 -- okay.

Politics: "With his legislative agenda run aground, the president has been seeking solace away from the White House in recent weeks, traveling the country and cultivating the image of a pool-shooting, beer-drinking regular guy."

Energy executives buzzing at US oil-export opening.

Volkswagen to invest $900 million in SUV plant in its Chattanooga, TN.

 The Los Angeles Times

Israel  resumes airstrikes hours after cease-fire fails. [Comment: Israel declared a unilateral ceaefire; Hamas responded with a barrage of rocket attacks.]

How funny: there it is -- the photo op of the planeload of Hondurans arriving back home. I can't make this stuff up.

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Other News

Portland, OR, to impose tax for breathing. The mayor calls it a "transportation user fee." Anyone who lives along a road in Portland, OR, will pay a monthly fee. Businesses will pay more. If one has two driveways to streets meeting at a corner, the fee is doubled. The "fee" is required, says the mayor, to pay for crumbling streets in Portland. Twenty (20) percent of the money collected will be used for public transportation subsidies and bicycle lanes. And not all of the rest of the 80 percent would be used for maintaining the streets; some of that would be used for "safety improvements." The fee would appear on city water and sewer bills starting in July 2015. Isn't this the city that is also considering a $15 minimum wage? Memo to self: change retirement plans.

Home Depot, Menards -- Williston, North Dakota Update

A reader sent this in as a comment. I posted it as a comment but am bringing it up here to make it easier to access and to search on google. The comment:
On KUMV-TV news: the manager of the Williston Home Depot satellite store said if business is good, they will potentially put up a full size Home Depot.  
Just an FYI. I have been following blogs on both Home Depot and Menards. Home Depot said they will decide on a full-size Home Depot in Williston after a 6 - 9-month review of business.  
Menards had Bid Letting on July 11th and ground breaking on July 21st for the new Williston Meanrds store. http://dodgeprojects.construction.com/Menards--Williston--ND-Home-Improvement-Store_stcVVproductId136953049VVviewprod.htm
From the Dodge Leader center bidding site (which, by the way, is linked at "Data Links"):

Menards (Williston, ND) Home Improvement Store
  • Valuation: $12,000,000
  • Owner Type: Private
  • Location: ND (Williams)
  • Report #: 201100561732 v. 7
  • Dodge Report Dodge BidPro Report
  • Description:
  • This project consists of 3 buildings - The main retail building will be between 168000 - 201000 (approx) sf and will consist of slab-on-grade concrete floor construction - EIFS and masonry exterior walls - excavation - site utilities - asphalt paving - landscaping - large parking lot and paved access rood to loading and warehouse areas - steel framing - steel joists - steel deck - membrane roofing - Mechanical - electrical - plumbing - 2nd floor partial mezzanine - public restrooms - meeting room offices - painting - flooring - public restrooms - The ware house will be between 35,000 and 45,000 sf - - slab on grade concrete floor construction - wood siding - wood framing - wood trusses - wood deck - shingled roofing - there is a small guard shack that is wood.
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USAF Procurement

This is really cool, and coincidental. I am reading a most interesting book on the development and procurement of the premier USAF fighter, the F-15. The book is written by Colonel (Ret.) Donn A. Byrnes, c. 2007.  I picked the book up, of all places, at the National Museum of Nuclear Science and History in Albuquerque, NM, on our cross-country trip from Dallas to Los Angeles. [I see the paperback is available for $64.29 (new) at Amazon.com. One can still get a brand new copy at the museum for much less than that.]

The F-15 is a single-seat fighter, noted for its ability, among other things to accelerate when ascending vertically, the first American fighter to be able to do that. There were a limited number of two-seat F-15's used for training with approximately one to two two-seat F-15s assigned to every F-15 fighter squadron, each of which had approximately 30 aircraft (at least overseas back in the 1980's and 1990's); I forget (or possibly never knew) the exact number. I was fortunate enough to have had almost exactly 100 sorties in the F-15D model over the course of about two years, all in Europe, mostly in Germany.

The book is an entertaining (to say the least) look at the procurement process in the US military and, most likely, the US government in general. Now, I see the process begins for a new US long-range bomber. The top story is being reported at Fox News
Not much is known about the Long Range Strike-Bomber project, which has been run as a classified program since 2011. But the bat-winged stealth bombers would likely cost around $550 million each, and the Air Force hopes to contract for as many as 100. That would add up to as much as $55 billion -- for a fleet of fighter planes the likes of which the world has never seen. Still, the pricetag would be lower than the B-2 currently used.
“The LRS-B is a top modernization priority for the Air Force. It will be an adaptable and highly capable system based upon mature technology,” Air Force secretary Deborah Lee James told the U.S. Naval Institute.
Any young captain working on this new LRS-B project might do well to read Donn Byrnes book on the F-15.