China's Great Wall Will Buy GM's Plant In India -- And GM Will Pay For The Sale -- ??? -- September 22, 2020

 Am I misreading this? See if you can catch it in the "segment" below.

From Automotive News / Automotive News China:

Delays to General Motors' sale of its Indian plant to Great Wall Motor due to tensions between India and China are likely to result in hefty unplanned costs for the U.S. automaker. 

Gaining Indian government approval for China-related deals is now expected to take quite some time and although the sale should still happen at some point, GM has not changed its plan to begin winding down the plant's operations next month. 

"By next year, it will either be a closed GM site or it will be an operating site with Great Wall," said one source. 

GM had planned to use the expected sale proceeds of $250 million-$300 million to pay off liabilities incurred with its exit from manufacturing in India in what a second source said would have been a "no gain-no loss" situation. 

Although money will come through once the deal is done, it will now have to pay out of pocket for severance pay, some of which would never have occurred had the deal proceeded smoothly, as well as other costs -- which could amount to a couple hundred million dollars. 

Sources also said severance pay costs could be much higher than usual due to lack of clarity about the deal's prospects and workers' demands for greater relief given the low chances of finding new jobs amid the coronavirus pandemic.

By paragraph, paraphrasing:

• paragraph 1: General Motors' sale of its Indian plant to China's Great Wall has been delayed
• paragraph 2: background
• paragraph 3: GM expected proceeds of $250 million to $300 million -- hold that thought
• paragraph 4: due to delay, GM will have unexpected expenses of "a couple hundred million dollars" - isn't that like $200 million? and probably more?
• paragraph 5: yes, it could be much more ...

It looks like GM might end up paying to sell this plant to China's Great Wall. 

I can hear Great Wall dealmakers in the backroom joking: we're going to buy GM's plant in India and GM will pay us to buy it.

Where have we heard that before? LOL.

Maybe I'm misreading something.

A Hess Well Drilled Back In 2010 Showing Some Life -- September 22, 2020

It's a little early to report this well, but ... finally it's coming back on line. Note: 3,581 bbls over 11 days extrapolates to 10,000 bbls over 30 days. Not bad for a well that

The well:

• 18250, 1,230, Hess, BB-Federal B-151-95-2122H-1, Blue Buttes, t5/10; cum 293K 7/20;

I first started tracking it in October, 2018:

October 23, 2018:  #18250 parallels the wells coming from this 5-well pad; still off line; back on line for a few days in 11/19; one day 12/10; #33737 is on a 5-well pad; this one was the first to report; the others are SI/NC, but I believe they have all been fracked; will soon report; #18250 was IA; 1/19 -- now back on A status, 10/19; three days of production in 2/19; still off line as of 4/19; back on line 5/19 but no production; no production, 7/19; remains off line 9/19; two days production 10/19 with minimal production; 2,000 bbls over 10 days, 11/19; continue to follow; the five well pad: #33736 - #33739, inclusive, all have been fracked; see this note; need to see what #18250 does; intermittent production since 6/17; still struggling; off line, 3/20; back on line? one day of production, 5/20; update here, August 15, 2020;

Recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	11	3581	3416	1247	4103	4103	0
BAKKEN	6-2020	8	1311	1092	745	1522	1522	0
BAKKEN	5-2020	1	126	0	0	0	0	0
BAKKEN	4-2020	0	0	0	0	0	0	0
BAKKEN	3-2020	0	0	216	0	0	0	0
BAKKEN	2-2020	2	82	0	15	6	6	0
BAKKEN	1-2020	5	724	471	75	620	620	0
BAKKEN	12-2019	1	207	605	53	214	214	0
BAKKEN	11-2019	10	1813	1678	677	1580	1580	0
BAKKEN	10-2019	2	543	424	73	598	598	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	0	0	0	0	0	0	0
BAKKEN	6-2019	0	0	213	0	0	0	0
BAKKEN	5-2019	2	211	0	8	356	356	0
BAKKEN	4-2019	0	0	0	0	0	0	0
BAKKEN	3-2019	0	0	0	0	0	0	0
BAKKEN	2-2019	3	83	0	6	144	144	0
BAKKEN	1-2019	0	0	96	0	0	0	0
BAKKEN	12-2018	0	0	0	0	0	0	0
BAKKEN	11-2018	0	0	0	0	0	0	0
BAKKEN	10-2018	0	0	0	0	0	0	0
BAKKEN	9-2018	0	0	0	0	0	0	0
BAKKEN	8-2018	0	0	0	0	0	0	0
BAKKEN	7-2018	0	0	0	0	0	0	0
BAKKEN	6-2018	5	521	808	45	595	595	0
BAKKEN	5-2018	7	341	212	4	249	249	0
BAKKEN	4-2018	10	408	191	7	176	176	0
BAKKEN	3-2018	10	290	414	79	266	266	0

 

15X Jump In Production; Well Drilled Back In 2010 -- XTO Fettig Well In Squaw Creek -- September 22, 2020

See this post for background.

Halo effect, if you have interests in this well, you have to be laughing all the way to the bank:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; from 400 bbls/month to 6,000 bbls/month -- let's see, 6,000 / 400 = 15x jump in production;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	31	4844	5050	1505	5183	0	4470
BAKKEN	6-2020	30	5018	4855	2127	5369	0	4636
BAKKEN	5-2020	31	5911	6319	2452	6325	0	5568
BAKKEN	4-2020	30	6018	5723	2574	6440	0	5707
BAKKEN	3-2020	21	3952	4047	2355	4255	0	3676
BAKKEN	2-2020	1	0	0	0	28	0	0
BAKKEN	1-2020	3	275	0	2563	412	0	329
BAKKEN	12-2019	0	0	0	0	0	0	0
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	10	116	444	128	246	0	2
BAKKEN	6-2019	29	363	430	93	708	0	0
BAKKEN	5-2019	31	389	369	105	757	0	0
BAKKEN	4-2019	30	382	312	104	721	0	7
BAKKEN	3-2019	31	415	255	102	859	0	3

The WPX Badger Wells In Squaw Creek

The wells:

• 35916, SI/A, WPX, Badger 22-21HY, Squaw Creek, t--; cum 110K in six months;
• 35917, SI/A, WPX, Badger 22-21HA, Squaw Creek, t--; cum 128K in seven months;
• 36450, SI/NC, WPX, Badger 22-21HIL, Squaw Creek, t--; cum 160K in seven months;
• 35918, SI/NC, WPX, Badger 22-21HZ, Squaw Creek, t--; cum 174K in eight months; see production below;

The well:

• 35918, SI/NC, WPX, Badger 22-21HZ, Squaw Creek, t--; cum 174K in eight months; see production below; 

Production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	30	15869	15939	11081	27501	25060	0
BAKKEN	6-2020	28	16699	16787	7639	28938	26563	0
BAKKEN	5-2020	30	21596	21426	18077	27472	24622	0
BAKKEN	4-2020	29	22496	22524	18222	30265	24246	3132
BAKKEN	3-2020	22	13183	13300	12923	20758	18799	0
BAKKEN	2-2020	26	28186	28259	33089	33288	27998	1827
BAKKEN	1-2020	31	41989	41838	34393	49589	29362	15347
BAKKEN	12-2019	31	14367	14171	5556	6904	5367	0
BAKKEN	11-2019	0	0	0	0	0	0	0

********************************************
Other Wells In The Immediate Area Of Interest 

Wells at 180-degrees, from south to north:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; see below;
• 20711, AB/341, WPX, Lucy Lone Fight 16-22H, Squaw Creek, t9/11; cum 124K 4/19;

Halo effect, if you have interests in this well, you have to be laughing all the way to the bank:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; from 400 bbls/month to 6,000 bbls/month -- let's see, 6,000 / 400 = 15x jump in production; also tracked here;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	31	4844	5050	1505	5183	0	4470
BAKKEN	6-2020	30	5018	4855	2127	5369	0	4636
BAKKEN	5-2020	31	5911	6319	2452	6325	0	5568
BAKKEN	4-2020	30	6018	5723	2574	6440	0	5707
BAKKEN	3-2020	21	3952	4047	2355	4255	0	3676
BAKKEN	2-2020	1	0	0	0	28	0	0
BAKKEN	1-2020	3	275	0	2563	412	0	329
BAKKEN	12-2019	0	0	0	0	0	0	0
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	10	116	444	128	246	0	2
BAKKEN	6-2019	29	363	430	93	708	0	0
BAKKEN	5-2019	31	389	369	105	757	0	0
BAKKEN	4-2019	30	382	312	104	721	0	7
BAKKEN	3-2019	31	415	255	102	859	0	3

A Very, Very Bad Week For EVs And Hydrogen Vehicles -- September 22, 2020

Nikola: the company's stock falls 25% when CEO and founder abruptly resigns under SEC investigation.

TSLA: falls 7% on its biggest day -- on "battery day" when we learn:

• nothing new of consequence;
• new battery did not make an appearance; and,
• EVs still a luxury buy for rich people;

Some are suggesting Nikola had its five minutes of fame; Tesla had its 45 minutes of fame. The way it looks now, only with government mandates will EVs become a "thing" any time soon (i.e., my investing lifetime).  I've read a lot of social media content and it all comes down to this: those that are interested in buying a Tesla, it's their second or third vehicle; but not their primary vehicle, and in more cases than note, their third vehicle. Much could be written but most has been previously said.