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  • Natural Gas Price Rise Above $4 Could Be Imminent [View article]
    EIA Drilling Productivity Report predicts natural gas production will drop another .26 Bcf/d in September vs August. The report doesn't cover 43% of U.S. production:

    http://1.usa.gov/19B1aGL
    Aug 11, 2015. 11:31 AM | Likes Like |Link to Comment
  • Natural Gas Price Rise Above $4 Could Be Imminent [View article]
    Are the curtailments in the Marcellus and Utica voluntary? My understanding is gas in the region remains takeaway capacity restrained.

    Seems like they may have drilled more than they can sell.
    Aug 9, 2015. 06:56 AM | Likes Like |Link to Comment
  • Natural Gas Price Rise Above $4 Could Be Imminent [View article]
    I make the El Nino point in my article. It depends on whether or not the much warmer than normal sea surface temperatures persist in the Gulf of Alaska, or cool down.

    Click on Full Global:

    http://1.usa.gov/1K9DDMq
    Aug 8, 2015. 08:22 AM | Likes Like |Link to Comment
  • Natural Gas Price Rise Above $4 Could Be Imminent [View article]
    EIA weekly natural gas storage report came in at + 32 Bcf for the week ending July 31. Producing Region had a draw of 6 Bcf.
    Aug 6, 2015. 01:23 PM | 1 Like Like |Link to Comment
  • Whiting Petroleum Choking On Kodiak Acquisition [View article]
    I thought I was clear in the article that there was a dramatic change in the market between when the deal was struck and when the deal closed. The reason for the $140 million walkaway penalty was that if circumstances changed dramatically Whiting had an exit. It is the decision not to exercise the clause in the contract that I am critical of, not the original decision to acquire Kodiak.
    Jul 31, 2015. 02:53 PM | 7 Likes Like |Link to Comment
  • Keep Buying 5 Small-Cap Oil Stocks With Low Debt Levels [View article]
    Quality of properties, and maturity of production, certainly matter. Whiting sold non-core acreage with high costs. Most likely there are few attractive drilling locations on the acreage sold at current strip prices. This is not comparable to the valuable acreage held by MTDR, MCF, USEG, and CPE with internal rates of return in the 40% plus range at mid-$50 oil prices.

    "During the second quarter 2015, Whiting sold two packages of older, conventional, operated and non-operated properties to private buyers for a total of $185 million. The effective date for both sales is June 1, 2015 and both sales closed in June 2015. Reserves totaled an estimated 18.0 MMBOE (59% oil) with estimated remaining 2015 production of 6,100 BOE/d. The sales were consistent with Whiting’s continuing 2015 plans to sell mature properties with higher LOE per BOE than its core Bakken and Niobrara assets. LOE for the properties averaged approximately $18.00 per BOE versus $6.50 per BOE in the Bakken and $7.50 per BOE in the Niobrara.

    Including $108 million of non-core property sales announced in Whiting’s first quarter 2015 financial and operating results press release, year-to-date Whiting has completed a total of $293 million of non-core asset sales with associated reserves of 26.2 MMBOE (67% oil) and estimated remaining 2015 production of 8,300 BOE/d as of the effective dates of each sale."

    "
    Jul 30, 2015. 10:51 AM | 1 Like Like |Link to Comment
  • Keep Buying 5 Small-Cap Oil Stocks With Low Debt Levels [View article]
    The whole point of buying five low debt oil stocks is none of them are near term bankruptcy candidates, including USEG. U.S. Energy can easily sell a quarter of their production at current market prices and pay off 100% of their liabilities without the $4 million in cash they have in the bank. That doesn't even count the Eagle Ford well drilling locations near EXCO Resources which contain several million barrels of oil reserves. Not many E&P companies can do that.

    The only exposure MCF has to their non-operating partners is a partner may decide to pass on a well proposed by MCF. They can pick up the working interest themselves, or find another partner. It is a non-issue.
    Jul 29, 2015. 02:42 PM | 2 Likes Like |Link to Comment
  • Buy These 5 Small-Cap Oil Stocks With Low Debt Levels [View article]
    Update:

    http://seekingalpha.co...
    Jul 28, 2015. 05:10 PM | Likes Like |Link to Comment
  • EIA Drilling Productivity Report Forecasts Declining Natural Gas Production [View article]
    The latest EIA Drilling Productivity Report predicts 6 of the 7 regions followed will have declining natural gas production in August:

    http://1.usa.gov/1aNgyNE
    Jul 13, 2015. 03:51 PM | Likes Like |Link to Comment
  • U.S. Energy - The Gamble Has Almost Succeeded [View article]
    Nice article. For those interested in the mine here is an article from 2013:

    http://seekingalpha.co...

    There is a link to another article that is also recommended reading.

    P.S. Contango believes it now has the right completion techniques to the Eagle Ford. Here is a recent article referencing the potential for the Eagle Ford:

    http://seekingalpha.co...
    Jul 11, 2015. 11:23 AM | 4 Likes Like |Link to Comment
  • Is U.S. Energy Going To Zero? Low Debt Is Not Enough To Survive [View article]
    An additional point on USEG. Most of their acreage is held by production, they don't have to drill. If an operator proposes a new well they can pass, and they still retain their working interest in future drilling locations. They simply don't have any large financial commitments that they are on the hook for.
    Jun 30, 2015. 08:28 AM | Likes Like |Link to Comment
  • Is U.S. Energy Going To Zero? Low Debt Is Not Enough To Survive [View article]
    You may have missed my article on the K.M. Ranch Eagle Ford play because it was published under Contango (MCF). Here it is:

    http://seekingalpha.co...
    Jun 29, 2015. 03:26 PM | 2 Likes Like |Link to Comment
  • Is U.S. Energy Going To Zero? Low Debt Is Not Enough To Survive [View article]
    Thanks for linking my article to yours.

    There is no doubt the trading action in U.S. Energy's stock has been horrendous. But the company is simply not a near or mid-term bankruptcy candidate. They have stable production of 900 Boepd without any additional new drilling in 2015.

    Unless oil prices drop $15 to $20 per barrel from here you can simply throw out the Q1 income statement. Most of their production is in the Bakken, and prices there traded into the low $30's for part of the first quarter. Prices in the Bakken have since recovered, and in June traded close to West Texas Intermediate prices near $60 per barrel. This will be reflected in second quarter 10Q, which will show positive cash flow.

    USEG's best asset is the Eagle Ford on the K.M. Ranch. EXCO Resources has drilled very successful Eagle Ford wells nearby. USEG's partner Contango plans to spud their own Eagle Ford well later this year. If that well is successful, then USEG can book an additional 2 to 3 million barrels of proven reserves just from the K.M. Ranch. That alone would be worth much more than all of their debt.

    Without those Eagle Ford wells management stated the current PV-10 value at current strip prices is in excess of $40 million. That doesn't include their potential recent success in the Eagle Ford/Austin Chalk with $1.5 million vertical wells.

    Additionally, they own all sorts of things that can raise cash. First, they own their headquarters free and clear. The building is two floors and they occupy one floor and lease out the other. The building can be sold, or mortgaged to raise cash.

    USEG doesn't have any outstanding bonds beyond their bank debt. There is an active market for second lien bonds and they could tap that for liquidity if necessary.

    Your article does a nice job of highlighting the first quarter 10Q. Fortunately for USEG shareholders, that is not the whole story!
    Jun 29, 2015. 03:23 PM | 2 Likes Like |Link to Comment
  • Natural Gas Production Has Big Downward Revision By EIA [View article]
    Down two more rigs...seems to have stabilized for the time being:

    http://bit.ly/1NaebtG
    Jun 19, 2015. 02:04 PM | Likes Like |Link to Comment
  • EIA Puts Out Conflicting Natural Gas Production Forecasts [View article]
    Down another 7 rigs:

    http://bit.ly/1G0gkFL
    Jun 5, 2015. 02:42 PM | Likes Like |Link to Comment
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