Tuesday, August 7, 2012

Wednesday LInks; Whiting With Two Really Nice Wells; CLR WIth a Great Well (Three Forks)

Eight (8) new permits, the Williston Basin, August 8, 2012 --
  • Operators: BEXP (3), Whiting (2), Denbury (2), Helis
  • Fields: Bell (Stark), North Tobacco Garden (McKenzie), Rosebud (Williams), Blue Buttes (McKenzie)
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CLR and GMXR will be reporting 2Q12 earnings, Wednesday. NOG, DBLE, and AXAS will be reporting 2Q12 earnings, Thursday.
CLR: raises 2012 growth guidance
GMXR results here;
See first comment: Gulfport Energy, 2Q12, earnings.
RBN Energy: whatever happened to the seasonality of natural gas?
Energy links at Independent Stock Analysis. 

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Look at "anon 1" comments below, to include this data point regarding CHK:
The company reported its Thurman Horn 406H well averaged approximately 7,350 boe per day (90% liquids) in its first eight days of stabilized production. This well is currently flowing at a rate of approximately 5,100 boe per day (65% liquids). In its first 60 days of production, the well has produced cumulative volumes of approximately 265,000 bbls of oil, 65,000 bbls of NGL and 350 mmcf of natural gas.  CHK press release.
,
Money, Money, Money, ABBA 
"In my dreams, I have a plan, if I got me a wealthy man ... it's a rich man's world ... a man like that is hard to find"
 
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Coming off confidential list, August 8, 2012:
  • 19460, 901, Whiting, Bergstrom 44-10H, Ray, t2/12; cum 21K 6/12;
  • 20079, 2,760, Whiting, Obrigewitch 21-16TFH, Bell, t2/12; cum 117K 6/12; 
  • 21482, 30, Legacy, Legacy Etal Seter 13-16H, Red Rock, a Spearfish well; t3/12; cum 2,559 bbls 6/12;
    21583, drl, CLR, Roadrunner 3-15H, Murphy Creek,
  • 22050, drl, BR, Kummer 41-30MBH, Blue Buttes, 
Producing wells completed:
  • 22548, 2,664, Whiting, Smith 41-12H, Sanish, t7/12; cum ---; middle Bakken;
  • 21586, 1,345, CLR, Clover 2-10H, Murphy Creek, t7/12; cum 443 bbls 7/12; 4-section spacing; total depth: 21,793; Three Forks;
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Some Light Reading Regarding the North Dakota Oil Patch

A couple of articles sent to me by Don:

Salt deposits, July, 2012, article: 
https://www.dmr.nd.gov/ndgs/newsletter/2012%20JULY/Impact%20of%20the%20Dissolution.pdf
Sand and gravel, July, 2012, article:
https://www.dmr.nd.gov/ndgs/newsletter/2012%20JULY/Sand%20and%20Gravel%20Resources.pdf

These articles and articles like these are archived under the "Geology" tab at the top of the blog. 

For Investors Only: KOG vs OAS

SeekingAlpha.com had a short note about NOG earlier today.

What caught my eye was the chart of NOG's competitors. Specifically, KOG vs OAS. I don't know how accurate/current the chart at the linked article was, but compare market cap, p/e, revenue, gross margins, and operating margins of the two companies.

Snapshots of the two companies can be found here. One of the two has its own in-house fracking spread. One company has 155,000 net acres in the Bakken; the other has 320,000 net acres in the Bakken. Again, compare their market cap.

And, yes, I do have a dog in this fight, accumulating shares in both companies at various times over the past two years. I won't be trading in either of these companies in the next 72 hours.

Disclaimer: this is not an investment site. This is for information and education only. Do not make investment decision based on anything you read at this blog.

Technology: Absolutely Nothing About the Bakken -- Although I Mention It

1. As regular readers know, I haven't watched television in several weeks now. I discontinued my cable television in San Antonio, and haven't got around to getting "rabbit ears." It looks like I'm not the only one cutting the television cord: link at my favorite newspaper, The Wall Street Journal, to which I do subscribe, thank you very much.
The most intense debate in television today—whether the lure of Netflix and YouTube is causing viewers to disconnect their cable-TV service—is likely to intensify after new figures showed a slight decline in overall pay-TV subscribers in the second quarter.

Publicly traded cable, satellite and phone companies had a combined net loss of about 200,000 subscribers in the quarter, earnings reports showed, about 0.2% of the roughly 100 million pay-TV subscribers. Sanford C. Bernstein estimates the overall industry shed more than 400,000 subscribers during the period when results for closely held operators are included.

A sustained decline in the number of people subscribing to pay TV has ramifications for pay-TV operators and for TV channels, most of which share in the fees paid by subscribers. Big entertainment companies generate much of their profits from subscription fees paid to TV channels.
Out here in California, at our sometimes-pied-a-terre, my wife has never had cable, and she watches the Olympics on NBC and "rabbit ears" with aluminum foil at the tips. It seems to work well. She has two small 1970's-style televisions, and in one room, she gets three of four major Los Angeles channels, and in another room she gets the fourth station. Whatever works. She installed ATT's U-Verse last week, as a birthday present to me wen I am out here; it is incredibly inexpensive, and works incredibly well. It's a long, long story, perhaps for another day, but I cannot compliment ATT enough about tech support.

My younger daughter in Portland, OR, and her husband do not watch television; anything that resembles television is off the internet. And videos, I guess.

The granddaughters don't watch television; not entirely true; they sneak in some cartoons when we aren't looking.

Minyanville also had something to say about "cord-cutting."

2. This is really, really cool. Amazon.com has figured out how to combat porch-theft.
The Web giant has quietly installed large metal cabinets—or Amazon Lockers—in grocery, convenience and drugstore outlets that function like virtual doormen, accepting packages for customers for a later pickup. Amazon began putting lockers in Seattle, New York state and near Washington, D.C., about a year ago.

And the company is now ramping up the service. In the past few weeks, Amazon has opened its first lockers sites in the San Francisco Bay area.
In another life, more than 35 years ago, my significant other lived in a Boston brownstone and porch-theft was a fact-of-life. Thirty-five years later Amazon.com has ended that. There are several other story lines that could be developed, but I doubt if anyone coming here to read about the Bakken are interested. So, I will let the linked story do the talking.

3. Everywhere we take the granddaughters in southern California, I note the strangest phenomenon: folks carrying their naked iPads and using them as cameras. Today at the Long Beach Aquarium, two folks had their iPads out, taking photos of the fish.

4. I think the union, the CWA, called for a strike against ATT beginning yesterday or sometime earlier this week; it's over. Well, that was quick.

Timing Is Everything: Otter Tail To Go Red

Updates

August 23, 2012: from an August 8 story -- headline: Wind power company announces closures day after Reid's clean energy summit. 
The day after the Senate Majority Leader Harry Reid’s held his annual Clean Energy Summit in Las Vegas, wind power manufacturer DMI Industries said it will close two of its wind tower factories by the end of the year, laying off a combined 384 workers in Oklahoma and North Dakota.
I wonder if DMI was the keynote speaker for the conference?

No matter how they spin the story, wind energy cannot succeed without huge help from the government.

Original Post
Link here.
Otter Tail Corp. is negotiating to sell its North Dakota-based wind tower manufacturing company for $20 million, leaving the future of nearly 400 workers uncertain.

Minnesota-based Otter Tail has not identified the potential buyer for the DMI Industries Inc. plants, property and equipment in West Fargo, ND [216 employees], and Tulsa, OK [167 employees].

[A company spokesman said] there has been a reduced demand for wind towers in part because of uncertainty surrounding the future of a federal tax break for wind energy.

DMI Industries was founded in 1978. 
Wow.