Seeking Alpha

HiddenValueInvestor

 
View as an RSS Feed
View HiddenValueInvestor's Comments BY TICKER:
Latest  |  Highest rated
  • Buda Oil Well Rates Of Return Better Than Eagle Ford [View article]
    The new locations look like infill wells between some of their most prolific wells.
    Aug 14 10:22 AM | 1 Like Like |Link to Comment
  • U.S. Energy's (USEG) CEO Keith Larsen on Q2 2014 Results - Earnings Call Transcript [View article]


    http://seekingalpha.co...
    Aug 13 03:07 PM | Likes Like |Link to Comment
  • EXCO Resources Could Be Sitting In The Buda Sweet Spot [View article]
    The latest update on the Buda:

    http://seekingalpha.co...
    Aug 13 12:10 PM | 1 Like Like |Link to Comment
  • Buda Oil Well Rates Of Return Better Than Eagle Ford [View article]
    USEG currently has 9,000 net acres prospective for the Buda and something like 35,000 gross acres. Not all are in the sweet spot. It is also too early to tell what the potential down spacing would be. At a minimum they have a couple of dozen of additional locations near the sweet spot.

    They recently acquired a 3,000 net acre position in an undisclosed location with an undisclosed private operator. The operator had drilled two wells and plans on fracture stimulating both wells in August. Those wells may be on the confidential list and it might be sometime before we get specifics. My understanding from investor relations was the original plan was to frack the wells if they didn't encounter a significant number of natural fractures. So we will have to wait and see on those 3,000 net acres. The only thing that is certain is there is a lot of oil all over the northern half of Dimmit county. The only challenge is what formation its located in and what is the best recipe to make an economical well. But the county is swimming in oil.
    Aug 13 12:06 PM | 1 Like Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    USEG second quarter operations update is out:

    http://yhoo.it/1oXqhMp

    In the words of the CEO "Buda, Buda, Buda!"

    This is great news for XCO as they have thousands of potential net acres to and farm-in opportunities to the west of the Booth-Tortuga lease. The Zavala Syncline fault runs south of the Zavala Dimmit border all the way to the western side of both counties.
    Aug 11 11:44 AM | 1 Like Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    Actually, they have no idea and it is all new to them. They are trying to be ultra conservative with their estimates in order to under promise and over deliver.
    Jul 24 09:43 PM | Likes Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    The article was about the success in the Buda and surveyed the different players. If it was about USEG it would have mentioned they have very little debt and are able to drill these Buda wells out of cash flow.
    Jul 23 03:49 PM | 2 Likes Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    The drilling economics is the huge key to the Buda. By my rough calculations collectively as a group the Beeler 2H, 3H, 4H, 6H, 7H, 8H, 9H, and the Woods Unit B wells all achieved a 100% return of capital by the end of May based on the TRC production reports. All production from those wells going forward is pure profit. That is amazing considering four of the wells didn't even start producing until 2014.

    I'm not including the 5H well, because in my mind all the costs of drilling the 5H and the sidetrack need to be included and so far that has been the most expensive well. But regardless of the production from the 5H there should easily be enough production from the eight wells listed above to achieve a 100% return of the capital invested in the 5H well.
    Jul 23 02:40 PM | Likes Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    We need more data on the 9H and 5H to know what kind of wells they are. Thanks to the contribution of someone who to the well sites it looks like the Beeler 8H and the Sage Energy Reinhard-Zientek wells have been fracture stimulated (the auto speller won't let me type f-racked). We also need data on those wells.

    The larger point is it is very hit and miss, but the winners pay for the mediocre wells. FYI, what we are calling mediocre wells are on a trajectory combined to reach payout in less than two years. The expectations are so high for the Buda play it is almost surreal.

    What is fascinating is the Beeler 4H well and the Jessica wells are clearly home run wells. But the 7H well located right near them is mediocre. A lot remains to be learned about the geology and best drilling techniques for the Buda.
    Jul 23 10:08 AM | 4 Likes Like |Link to Comment
  • Chesapeake Joining Buda Oil Rush In South Texas [View article]
    To find the Jessica well click on the online permit on the TRC website:

    http://bit.ly/1p8786Z

    There is a map link next to the API# under surface location. Click on the link and find well #33098. The Beeler 4H is #33040 and the Beeler 7H is #33073. You may have to zoom out 1.5X to find the Beeler 4H.
    Jul 22 06:14 PM | 1 Like Like |Link to Comment
  • U.S. Energy Is The Way To Play The Buda Oil Discovery [View article]
    For those interested in the geology of the area here is some great info from the U.S. Geological Assessment in 2003:

    http://on.doi.gov/UGFvKS

    There could be a lot of oil drilling opportunities beyond the Buda and the Eagle Ford.
    Jun 16 07:47 PM | 1 Like Like |Link to Comment
  • U.S. Energy Is The Way To Play The Buda Oil Discovery [View article]
    "They drilled a bunch of wells in 3Q and 4Q last year."

    They drilled one Buda well in the second quarter. They completed one Buda well in the fourth quarter. They completed two Buda wells in the fourth quarter (one at the very end of December). Drilling and completions ramped up at the end of the first quarter of 2014 and that continued into the second quarter. The second quarter should be the start of the "show me the money" quarters.
    Jun 16 07:44 PM | 1 Like Like |Link to Comment
  • Lonestar Resources Is The Next Multi-Bagger Getting Ready To Rock In The Lone Star State [View article]
    Nice article. I noticed you used USEG as part of the peer group. It showed the second lowest valuation based on your metrics. It is also poised to grow very rapidly due to the discovery of the Buda beneath its Eagle Ford acreage. Here is more info for those interested in the Buda oil play:

    http://seekingalpha.co...
    Jun 7 02:23 PM | 1 Like Like |Link to Comment
  • U.S. Energy Is The Way To Play The Buda Oil Discovery [View article]
    The Larsen's compensation is less than industry peers. You are misinformed. The stock will move higher when they demonstrate materially significant growth on a sustainable basis.

    The production data from April is pointing to the second quarter as the break out quarter for growth. If the move is sustained when the May production results are all released in early July the stock should trend higher and higher into the second quarter earning's release.
    Jun 4 09:25 AM | 1 Like Like |Link to Comment
  • U.S. Energy Is The Way To Play The Buda Oil Discovery [View article]
    I have been expecting this, but not this soon. Very good news indeed.
    May 19 11:25 PM | 1 Like Like |Link to Comment
COMMENTS STATS
238 Comments
149 Likes