The Enerplus Tailor Pad in Mandaree Oil Field -- March 28, 2019

The three Enerplus wells that came off confidential list today:

• 34416, 1,086, Enerplus, Scissors 149-93-04B-03H, 33-025-03421, 34 stages; 8.2 million lbs, Mandaree, t10/18; cum 83K 1/19; total drilling days, 18; total drilling hours, 109.4 hours; a strong gas show of 4,981 units while drilling the Lodgepole; the well landed an estimated 25 feet into the middle Bakken; the target was the "Clean B" and appeared somewhat thicker than prognosis; no trips in the lateral; connection gases built to hte 3,300 to 5,000 unit range after 17,500' MD; a 20' flare noted.

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	31	18521	18585	15685	18521	13023	3749
BAKKEN	12-2018	24	17744	17498	14802	17744	8333	8446
BAKKEN	11-2018	24	18375	18677	14948	18375	9822	8123
BAKKEN	10-2018	30	27582	27539	35325	27582	6068	20984
BAKKEN	9-2018	3	998	375	1106	998	552	405

• 34415, 1,490, Enerplus, Thimble 149-93-04B-03H, 33-025-03420, 34 stages; 11.9 million lbs, Mandaree, t10/18; cum 113K 1/19;  drilling days, 17; drilling hours, 122.3; target: middle Bakken C Zone; Stoneham Rig 18 walked form the Thimble 149 well to this location on June 25, 2018; no trips in the lateral; much lower gas than Scissors but at 21,184' MD gas was over 3,400 units with a 10 - 15' flare.

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	17	15390	15803	12688	15390	11074	3472
BAKKEN	12-2018	31	25475	25187	19573	25475	11994	11758
BAKKEN	11-2018	29	29844	30254	23547	29844	15910	13178
BAKKEN	10-2018	30	42213	41376	63534	42213	9117	32373
BAKKEN	9-2018	3	264	99	4416	264	146	102

• 34414, 1,450, Enerplus Tailor 149-93-04B-03H-TF, 33-025-03419, 34 stages; 10.2 million lbs, Mandaree, t10/18; cum 73K 1/19; total days drilling, 24; total drilling hours, 114.9; drilling the lateral, an intermittent 2' - 1' flare was established; connection gases built to 3,500 - 4,000 units by 11,000' MD; flare became more consistent after 17,500'. No trips in the lateral. Trip gas after the short trip at TD of 21,224' MD was only 1,400 units with a 4' flare.

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	20	8620	8953	9569	8620	6273	1728
BAKKEN	12-2018	31	17376	17084	17036	17376	8135	7992
BAKKEN	11-2018	27	15122	15562	17127	15123	8184	6514
BAKKEN	10-2018	30	30319	30723	40331	30320	6770	22974
BAKKEN	9-2018	2	1838	690	8865	1839	1016	776

Enbridge, Huge Win; Sempra Energy, North America -- March 28, 2019

Enbridge, line 3, link here.

Sempra Energy, Mexico, link here.

Sempra Energy is considering renegotiating regasification contracts at a Mexican terminal where it wants to add liquefaction capabilities to allow a potential increase in the LNG export capacity currently envisioned there.

The effort reflects the San Diego-based utility and energy infrastructure developer's confidence in the direction of commercial talks it is having with potential offtakers to support the LNG project at Energia Costa Azul in Baja California. It also is building market interest in a proposed export terminal in Texas and a second phase at the Louisiana terminal where it is preparing to start up its first train.

Sempra Energy, North America, link here.

• Sempra Energy is working aggressively to become one of the biggest liquefied natural gas exporters in North America, CEO Jeff Martin tells Reuters
• SRE is developing five projects - Cameron phases 1 and 2 in Louisiana, Port Arthur in Texas and Costa Azul phases 1 and 2 in Baja California in Mexico - totaling 45M mt/year
• if the company builds all 45M mt/year of capacity, it could become the second biggest North American LNG exporter behind current market leader Cheniere Energy
• the first 12M mt/year phase at the $10B Cameron project is already under construction, and Martin says SRE and its Cameron partners - Mitsubishi, Mitsui and Total - are working on a study for an 8M mt/year phase 2 expansion of the facility
• at the 12M mt/year Port Arthur project, Martin says SRE has a "big marketing effort to see if we can get sufficient contracts to reach a final investment decision" by Q1 2020

Unemployment Claims Well Below Consensus -- March 28, 2019, T+85, Part 3

Re-posting -- first time unemployment claims well below consensus and prior week claims revised strongly downward. Headlines anywhere? Nope.

Wow, this is incredible data being post today:

Jobless claims, link here:

• prior: 221K
• revised down: 216K
• consensus: 225K 
• actual: 211K

4Q18 GDP: revised down, corporate profits failed to rise for the first time in more than two years. 4Q18 GDP at 2.2% -- and, of course, about that time Jerome Powell raised the fed rate on concerns that the economy was overheating. But then this: if there is no recession in first and second quarters of 2019, the "expansion" will be the longest on record. I guess that "official milestone" will be set July, 2019. I'm not sure if the linked Reuters article is an op-ed or a news article, but it did include this:

For all of 2018, the economy grew 2.9 percent as previously reported, despite the White House's fiscal stimulus of $1.5 trillion in tax cuts and more government spending. Growth last year was the strongest since 2015 and was an acceleration from the 2.2 percent logged in 2017.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.

MasterCard EVP: Apple Card is unique for being "digital-first." Link here. 

• new Apple Card: co-partner -- MasterCard
• apply for the card on a mobile app; will immediately get "electronic" card; no waiting for physical card
• titanium metal, not plastic
• no number or expiring date and no name on the card
• brand mark of Apple and brand mark of MasterCard
• syncs with iPhone to analyze spending
• daily cash rewards
• built into Apple Wallet app
• no fees
• tokenization: each transaction has its own code; no longer uses an account number to complete transaction
• point of sale: no contact required; card can be "tapped"on the terminal
• issued by Goldman Sachs
• MasterCard spokesman avoids answering question on interest rates, etc

The market in early morning trading? The Dow is up 100 points. Whoo-hoo! Watch list:

• XLNX: up $2.75, up 2.2%, trading at $128
• Tesla: up $3.78, up 1.4%; trading below $280
• UNP: up $2.00, up 1.2%; trading at $165
• AAPL: up 15 cents; trading at $188
• EOG: up 48 cents; trading at $95
• SRE: down 38 cents;
• D: down 62 cents
• OAS: up 5 cents, at $6.00
• BRK-B: up 14 cents, right at $200
• RDS-B: up 6 cents; just below $64
• EW: up $1.50, just below $190
• JAG: down eleven cents or about 1%
• COP: down 53 cents;
• CVX: up 34 cents; 

March 28, 2019, T+85, Part 1

Jobless claims, link here:

• prior: 221K
• revised down: 216K
• consensus: 225K 
• actual: 211K

4Q18 GDP: revised down, corporate profits failed to rise for the first time in more than two years. 4Q18 GDP at 2.2% -- and, of course, about that time Jerome Powell raised the fed rate on concerns that the economy was overheating. But then this: if there is no recession in first and second quarters of 2019, the "expansion" will be the longest on record. I guess that "official milestone" will be set July, 2019. I'm not sure if the linked Reuters article is an op-ed or a news article, but it did include this:

For all of 2018, the economy grew 2.9 percent as previously reported, despite the White House's fiscal stimulus of $1.5 trillion in tax cuts and more government spending. Growth last year was the strongest since 2015 and was an acceleration from the 2.2 percent logged in 2017.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here. 

The theme continues -- a "Fed" rate cut later this year.

Links to which we will return:

• Daimler and Geely team up to build Smart cars in China; reminder: Geely already owns Volvo;
• solar car parks in Scotland
• $30 billion Driftwood LNG decision? 

**************************************

Looking For Love In All The Wrong Places

Seven Wells Coming Off Confidential List Today; Enbridge Wins Big -- March 28, 2019

Enbridge / Line 3: win big -- in court -- Minnesota -- again. 

Wells coming off confidential list today -- Thursday, March 28, 2019: 120 wells for the month; 340 wells for the quarter

• 35433, SI/NC, XTO, Emma 31X-30A, Alkali Creek, no production data,
• 34927, 2,663, WPX, Plenty Sweet Grass 18-19HF, Squaw Creek, t2/19; cum --;
• 34912, SI/NC, Hunt, Halliday 146-93-13-1H-1, 
• 34416, 1,086, Enerplus, Scissors 149-93-04B-03H, Mandaree, t10/18; cum 83K 1/19;
• 34415, 1,490, Enerplus, Thimble 149-93-04B-03H, Mandaree, t10/18; cum 113K 1/19;
• 34414, 1,450, Enerplus Tailor 149-93-04B-03H-TF, Mandaree, t10/18; cum 73K 1/19;
• 24045, SI/NC, Petro-Hunt, State 154-94-31C-32-1H, Charlson, no production data;

Active rigs:

$58.58	3/28/2019	03/28/2018	03/28/2017	03/28/2016	03/28/2015
Active Rigs	66	62	49	31	97

RBN Energy: negative Permian gas prices, but is the worst yet to come?

Permian natural gas prices are having a rough spring. After a volatile winter that saw two periods of negative-priced trades followed by a period of relatively strong prices, values at the Permian’s major trading hubs hit the skids earlier this week just as Spring Break set in for most in the Lone Star state. Once again, pipeline maintenance and burgeoning production appear to be the main culprits, but this upheaval feels different, in our view.

Clearly, the price crash has reached a new level of drama, with day-ahead spot prices at West Texas’s Waha hub now settling below zero — some days by more than $0.50/MMBtu. Gas production has raced higher too, now within striking distance of 10 Bcf/d, on the coattails of continued oil pipeline capacity expansions, but new gas pipeline takeaway capacity is an estimated six months away. What becomes of Permian gas prices in the meantime, and how much worse could already-negative prices get? Today, we discuss the drivers behind the latest price deterioration and assess what’s ahead for the Permian natural gas markets.