Emerald Oil Could Replicate Kodiak's Success In The Bakken [View article]
USEG has a non-operated working interest in wells being drilled by Zavanna in McKenzie very close to where Emerald is drilling. Many of the wells are in Emerald's presentation. Several of these wells have already produced over 100,000 barrels of light sweet crude.
However, USEG is in on some Buda wells under the Eagle Ford that have produced over 150,000 barrels of light sweet crude in less than a year for under $4 million in total drilling and completion costs.
Emerald Oil Could Replicate Kodiak's Success In The Bakken [View article]
They are issuing more shares to run another rig. That is exactly the way Kodiak management built the company, with a topline growth focus. I think the valution of EOX still compares very favorably with that of KOG. Plus, as a USEG shareholder I am aware of the type of acreage they are drilling in in McKenzie Coutny and it is very economic at current prices.
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
Thanks for posting this. But it is an opinion piece by someone who opposes the mine and not a news story.
1. Thompson Creek pulled out because of cash contraints brought on by their construction of Mt. Milligan.
2. It is not uncommon for a mine of this size to cost $1 billion in construction costs.
3. U.S. Energy has water rights from the forest service and storm discharge disposal rights from the State of Colorado. U.S. Energy has stated their attorneys do not believe the Town of Crested Butte can pass water ordinances that supercede and make invalid State permits.
4. It is true there is opposition and there will probably be lawsuits. The environmentalists have already brought two lawsuits to stop the mine. They lost both times, including once at the Supreme Court level.
5. In my opinion if the environmentalists want to stop the mine ultimately they only have one option; buy it or have the federal government buy it. U.S. Energy has indicated they are open to this option if someone shows them the money.
6. U.S. Energy is cashflow positive and is not running out of money.
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
The mine is much more valuable each step of the way it goes through the permitting process. The preliminary approval of the mine plan of operations places pressure on those wanting a federal land exchange to get it done sooner rather than later. Otherwise, they will watch the mine go into production.
Some Buda Wells In South Texas Outperforming Eagle Ford Wells [View article]
Crimson Exploration announced last night they have completed the Buda well and expect full production to commence in mid-May. No data released, but they said they were "very encouraged" and declared it a second play to grow oil and liquids production in addition to their Woodbine acreage.
Importantly, they announced they plan to spud another Buda well early in the third quarter. Additionally, Crimson is merging with Contango Energy and on the merger slideshow they state they plan to run a full time rig in the second half of 2013 and for all of 2014. They also stated the well costs were less than $4 million.
This presents real upside growth for both Crimson and U.S. Energy.
Some Buda Wells In South Texas Outperforming Eagle Ford Wells [View article]
Maybe my syntax was off. After producing 200,000 barrels of light sweet crude oil the Dan Hughes Heitz 3H well continued to produce an additional 16,000 barrels of light sweet crude oil in Maech,
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
"not only will the project have to get by the locals, but also the Colorado water board."
The approval of the mine plan of operations by the forest service satisfied the last requirement for water rights. USEG will not have to go to the Colorado Water Board for water rights, they already have full water rights.
" BTW, Mt Emmons lies on a snow belt: 500 inches on an avalanche prone mountain is normal. You either shutdown for 6 months or risk setting off avalances blasting."
This I cannot answer directly. But the forest serivice knows exactly where the mine is located and knows all about the avalanche risks. The forest service is satisfied this issue is sufficiently addressed.
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
The mine will take time and there is environmental opposition. But if the mine were fully permitted it would be worth much more than the stock is trading for.
USEG is trading for $1.75 and its current oil and gas is worth $4. That does not include the new discovery in the Buda and a test well is being drilled now. The stock price of USEG is tied much more closely to the Buda discovery than the mine in the short term. Here is a look at what is next door in the Buda:
Why Natural Gas Could Make A Run Towards $5 This Spring [View article]
I stand by the $5 call this spring. The East Region and the Producing Region are 141 Bcf below the 5 year average. That deficit will get larger over the next two weeks based on weather.
It turns out the Heitz 302 3H well is the well drilled and completed closest to the Crimson/U.S. Energy property line. Also, the independent petroleum reserve engineers are crediting 325,000 Boe per well.
3 Stocks With Lots Of Upside From A New Oil Discovery Under The Eagle Ford [View article]
Crimson should share the sweet spot for the Buda with Dan Hughes.
In the Woodbine Crimson has some of the most successful wells to date. Crimson is presenting April 17 at a conference and they will update their presentation on their website at that time.
I will probably write another article after the results of the Buda well are known if they are in line with the results Dan Hughes achieved.
3 Stocks With Lots Of Upside From A New Oil Discovery Under The Eagle Ford [View article]
Thanks, I didn't catch that I wrote Crimson rather than Chesapeake has placed over 100K acres for sale. It is Chesapeake with the acreage for sale.
Crimson does have a lot of debt and they do have to do something to expand their drilling budget. The company has over 1,200 drilling locations and plans to drill only 10 wells this year. They do have some of the best acreage in the Woodbine in Grimes and Madison County that is worth more than their enterprise value. The Buda is a bonus.
The best leverage to the Buda wells is U.S. Energy. They have a marketcap under $50 million and they will have an enterprise value under $40 million (based on the current stock price of $1.72) when the real estate they found a buyer for closes in May. Great balance sheet and plenty of capital to drill. Their problem is Crimson is the operator and they have to wait on Crimson.
Natural Gas: What A Difference A Year Makes - Analysis, Outlook, Statistics, Catalysts [View article]
I have seen an analysis that coal production is down 10 million tons per month in 2013 versus 2012 and there may not be enough coal to absorb the remaining coal to gas switching without higher coal prices.
Great data, but I think prices needed to be a lot higher than $4.50 to see a return of the rigs to the dry gas fields.
Emerald Oil Could Replicate Kodiak's Success In The Bakken [View article]
However, USEG is in on some Buda wells under the Eagle Ford that have produced over 150,000 barrels of light sweet crude in less than a year for under $4 million in total drilling and completion costs.
http://seekingalpha.co...
Emerald Oil Could Replicate Kodiak's Success In The Bakken [View article]
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
1. Thompson Creek pulled out because of cash contraints brought on by their construction of Mt. Milligan.
2. It is not uncommon for a mine of this size to cost $1 billion in construction costs.
3. U.S. Energy has water rights from the forest service and storm discharge disposal rights from the State of Colorado. U.S. Energy has stated their attorneys do not believe the Town of Crested Butte can pass water ordinances that supercede and make invalid State permits.
4. It is true there is opposition and there will probably be lawsuits. The environmentalists have already brought two lawsuits to stop the mine. They lost both times, including once at the Supreme Court level.
5. In my opinion if the environmentalists want to stop the mine ultimately they only have one option; buy it or have the federal government buy it. U.S. Energy has indicated they are open to this option if someone shows them the money.
6. U.S. Energy is cashflow positive and is not running out of money.
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
Some Buda Wells In South Texas Outperforming Eagle Ford Wells [View article]
Importantly, they announced they plan to spud another Buda well early in the third quarter. Additionally, Crimson is merging with Contango Energy and on the merger slideshow they state they plan to run a full time rig in the second half of 2013 and for all of 2014. They also stated the well costs were less than $4 million.
This presents real upside growth for both Crimson and U.S. Energy.
Some Buda Wells In South Texas Outperforming Eagle Ford Wells [View article]
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
http://bit.ly/ZUnjf6
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
The approval of the mine plan of operations by the forest service satisfied the last requirement for water rights. USEG will not have to go to the Colorado Water Board for water rights, they already have full water rights.
" BTW, Mt Emmons lies on a snow belt: 500 inches on an avalanche prone mountain is normal. You either shutdown for 6 months or risk setting off avalances blasting."
This I cannot answer directly. But the forest serivice knows exactly where the mine is located and knows all about the avalanche risks. The forest service is satisfied this issue is sufficiently addressed.
U.S. Forest Service Bumps Up The Value Of The Mt. Emmons Molybdenum Mine [View article]
USEG is trading for $1.75 and its current oil and gas is worth $4. That does not include the new discovery in the Buda and a test well is being drilled now. The stock price of USEG is tied much more closely to the Buda discovery than the mine in the short term. Here is a look at what is next door in the Buda:
http://seekingalpha.co...
Why Natural Gas Could Make A Run Towards $5 This Spring [View article]
3 Stocks With Lots Of Upside From A New Oil Discovery Under The Eagle Ford [View article]
http://bit.ly/YXgKc3
It turns out the Heitz 302 3H well is the well drilled and completed closest to the Crimson/U.S. Energy property line. Also, the independent petroleum reserve engineers are crediting 325,000 Boe per well.
3 Stocks With Lots Of Upside From A New Oil Discovery Under The Eagle Ford [View article]
In the Woodbine Crimson has some of the most successful wells to date. Crimson is presenting April 17 at a conference and they will update their presentation on their website at that time.
I will probably write another article after the results of the Buda well are known if they are in line with the results Dan Hughes achieved.
3 Stocks With Lots Of Upside From A New Oil Discovery Under The Eagle Ford [View article]
Crimson does have a lot of debt and they do have to do something to expand their drilling budget. The company has over 1,200 drilling locations and plans to drill only 10 wells this year. They do have some of the best acreage in the Woodbine in Grimes and Madison County that is worth more than their enterprise value. The Buda is a bonus.
The best leverage to the Buda wells is U.S. Energy. They have a marketcap under $50 million and they will have an enterprise value under $40 million (based on the current stock price of $1.72) when the real estate they found a buyer for closes in May. Great balance sheet and plenty of capital to drill. Their problem is Crimson is the operator and they have to wait on Crimson.
Why These Below $10 Bakken Oil Stocks Are Undervalued 'Must Buys' For 2013 [View article]
Natural Gas: What A Difference A Year Makes - Analysis, Outlook, Statistics, Catalysts [View article]
Great data, but I think prices needed to be a lot higher than $4.50 to see a return of the rigs to the dry gas fields.