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  • Whiting Petroleum Should Walk Away From Kodiak Acquisition [View article]
    Nothing suspect. I was simply trying to point out that acreage that worked with oil in the $90's doesn't work with oil in the $60's.
    Dec 3, 2014. 05:13 PM | 1 Like Like |Link to Comment
  • EXCO Resources Plans To Tap Oil In Buda Formation [View article]
    Those interested in USEG can find more information here:

    http://seekingalpha.co...

    They are even more levered to the Buda and Austin Chalk sweet spot than Contango or EXCO Resources.
    Nov 18, 2014. 01:43 PM | 1 Like Like |Link to Comment
  • EXCO Resources Could Be Sitting In The Buda Sweet Spot [View article]
    While it has taken longer than expected, EXCO Resources finally plans to test the Buda on is acreage west of the Booth-Tortuga lease. They have a partner that plans to drill four to five Buda wells starting in November of 2014.

    Multiple wells drilled to their east by USEG and MCF have averaged over 1,000 Boepd for the initial 30 days. Well costs are now down to under $3 million on average.
    Oct 30, 2014. 03:14 PM | 1 Like Like |Link to Comment
  • Contango Oil And Gas: Take A Good Hard Look At This Misunderstood, Undervalued SMID E&P Company [View article]
    If oil prices stay down costs may trend down also as rigs are dropped. Contango is poised to benefit from this since they are drilling out of cash flow. It will definitely be more difficult for E&P operators to raise funds in the capital markets for drilling in the current environment.

    USEG remains a huge beneficiary of Contango's ability to drill in 2015 out of cash flow. USEG is also currently drilling out of cash flow. They have a 30% working interest in most of Contango's acreage in the Buda and Eagle Ford in the Zavala/Dimmit area. The last 6 Buda wells have averaged over 1,000 Boepd for 30 days. Excellent results for total wells costs of $2 million to $3.5 million.
    Oct 23, 2014. 07:45 AM | 1 Like Like |Link to Comment
  • Contango Oil And Gas: Take A Good Hard Look At This Misunderstood, Undervalued SMID E&P Company [View article]
    This article answers a lot of questions on the geology. The CML wells were not drilled when the article was written. But it proves Dan Hughes contention that the Buda is thicker to the west of their lease.

    http://seekingalpha.co...
    Oct 17, 2014. 09:52 AM | 1 Like Like |Link to Comment
  • U.S. Energy: This Oil Stock Is Too Cheap To Ignore, With Significant Buda Exposure [View article]
    If I am viewed as the only analyst for USEG, then I will share my current estimate for the third quarter. This includes no revenues from the new Dimmit partner. I have revenue at $11.1 million and EPS at 9 cents.

    The above estimate is simply my opinion and carries no guarantees or assurances. All investor's need to do their own due diligence and not rely on the above estimates.
    Oct 2, 2014. 11:08 AM | 1 Like Like |Link to Comment
  • U.S. Energy: This Oil Stock Is Too Cheap To Ignore, With Significant Buda Exposure [View article]
    You make a good point about lack of analyst coverage. No analyst has bothered to dig in and understand the upside of the Buda. It doesn't help that Contango again referred to it as more of a statistical play even though they keep announcing one successful well after another. It is their best play.

    Contango seems intent on becoming a diversified on-shore operator and apparently plans to take the cash flow from their Gulf assets and reinvent them on-shore. I imagine if an opportunity arose to sell their Gulf assets they would take it.

    Contango will be operating a Buda rig in 2015. They also plan to drill Eagle Ford wells. USEG is funding all of their share of Contango's drilling out of cash flow.

    USEG has another undisclosed operator in Dimmit drilling Buda, Eagle Ford, and Austin Chalk wells. They have almost a 30% working interest with that operator. I think USEG will wait on the result of the test wells and the operator's plans for 2015. If they are active USEG will have plenty of wells being drilled. If they are not active I look for USEG to acquire new acreage to drill as either a non-operator, or an operator. They are looking for a new President and Chief Operating Officer and want one that can turn the company into a successful operator.

    Right now they are so unlevered they don't need to sell the Bakken acreage unless they make a major acquisition.

    Oct 2, 2014. 10:55 AM | 1 Like Like |Link to Comment
  • Contango And U.S. Energy Are In Austin Chalk Sweet Spot [View article]
    The reserves would certainly be worth more per BOE if Contango were to up the number of rigs drilling in the area.

    I see they are presenting at the Johnson and Rice Energy Conference next week. Hopefully we will get clear update as to what their plans are.
    Sep 23, 2014. 02:15 PM | 1 Like Like |Link to Comment
  • Buda Oil Well Rates Of Return Better Than Eagle Ford [View article]
    I didn't think U.S. Enercorp was the new operator USEG is drilling with in Dimmit. But you make a compelling case and may be right.
    Sep 3, 2014. 10:08 AM | 1 Like Like |Link to Comment
  • 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, 2014. 10:22 AM | 1 Like 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, 2014. 12:10 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, 2014. 11:44 AM | 1 Like 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, 2014. 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, 2014. 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, 2014. 07:44 PM | 1 Like Like |Link to Comment
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