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Nawar Alsaadi

 
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  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    Actually LPG is much different from diesel, diesel stays in the reservoir and can contaminate the water, LPG turns into gas (due to the heat and pressure) and escapes the reservoir, usually 100% of the injected is recovered.

    Regards,
    Nawar
    Jan 3, 2012. 06:09 PM | Likes Like |Link to Comment
  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    Most certainly, next year will be the first where they will operate at some real scale, by the end of Q1 they will have 10 sets operating, this should provide them with some operating leverage for sure in comparison to prior years.
    Jan 3, 2012. 04:09 PM | Likes Like |Link to Comment
  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    This will likely happen next year, however it is normal for a company growing as fast as GFS to be allocating most of its cash toward further capital spending as they position for strong growth going forward.

    Regards,
    Nawar
    Jan 3, 2012. 03:55 PM | Likes Like |Link to Comment
  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    Thanks for the correction Mtn, I especially appreciate corrections that render the story even more appealing :).
    Jan 3, 2012. 03:18 PM | 2 Likes Like |Link to Comment
  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    I didn't wish for the article to get to technical, for that I refer you to the presentation l linked to in the article by Mr.Robert Lestz, Gasfrac CTO:

    http://bit.ly/yDpcvx

    Check slides 9 to 15, there is a comparison with water, as well as with other fracking fluids.

    Regards,
    Nawar
    Jan 3, 2012. 02:58 PM | 2 Likes Like |Link to Comment
  • 5 Canadian Oil And Gas Takeover Targets For 2012 [View article]
    Good list, I would add Equal Energy (EQU) as a probable target as well, trading at 50% discount to NAV, and they have exposure to the Mississippian in Oklahoma.
    Jan 3, 2012. 11:34 AM | Likes Like |Link to Comment
  • Micro Cap Oil And Gas Companies Doubling Production [View article]
    I would like to correct my prior post the correct symbol for Equal Energy is EQU on both the TSX and NYSE.
    Jan 1, 2012. 03:41 PM | Likes Like |Link to Comment
  • Crunching Some Numbers On The Billion Dollar SandRidge Joint Venture [View article]
    EQU balance sheet has a bit higher leverage than its peers (2.5 next year CF), however they have been paying back debt through selling non-core assets, the company produces about 10K Bpd, 50% NG and 50% Liquids; their NAV is about $10 excluding the Mississippian acreage, and their reserves are very conservatively booked.
    Dec 27, 2011. 09:34 AM | Likes Like |Link to Comment
  • Crunching Some Numbers On The Billion Dollar SandRidge Joint Venture [View article]
    Based on the value of raw acres in the Mississippian, Equal Energy position should be worth anywhere from $65m to $80m against an enterprise value of $300m; Equal management already indicated that they currently assessing plans to accelerate monetization of the Mississippian acreage.
    Dec 27, 2011. 09:30 AM | Likes Like |Link to Comment
  • Crunching Some Numbers On The Billion Dollar SandRidge Joint Venture [View article]
    I believe the per acre price is lower because the August Atinum deal was done with the core Mississippian acreage, while the new one is two thirds from west Kansas which is not where the sweet spot is; another company with core Mississippian acreage is Equal energy (EQU), they have 20000 Mississippian acres, valued at $0 in the balance and by Mr. Market.
    Dec 23, 2011. 12:02 PM | 1 Like Like |Link to Comment
  • RAM Energy Sources: Don't Overthink Buying This Stock, You'll Get Left Behind [View article]
    Equal Energy (EQU) is another player where the Mississippian acreage is not being valued in the stock.
    Dec 23, 2011. 10:26 AM | Likes Like |Link to Comment
  • Peak Oil Is Here, Energy Stocks Will Soar In 2012 [View article]
    Oil service stocks like waterless fracker Gasfrac is another way to get exposure to peak oil.
    Dec 22, 2011. 10:14 AM | Likes Like |Link to Comment
  • Halliburton Is Looking Good In More Ways Than One [View article]
    It is worth noting that HAL is also part patent owner with Chevron in gelling propane, which is what GasFrac has been using to frack, there is no water used with gelled propane fracking, thus no waste water is produced as a result; already over a 1000 fracks have been done using this technology, which in in addition to the lower pollution, it is leads to higher production and higher reserves.
    Dec 20, 2011. 07:10 PM | 2 Likes Like |Link to Comment
  • Equal Energy: An Unparalleled Opportunity [View article]
    In terms of 2012 cash flow, I believe the weaker NG prices are currently countered by higher oil prices, the company cash flow increases by $6.8 million for each $10 increase above $90 for WTI, another factor to consider is that 25% of their NG production is hedged at $4.95 for 2012 which has the effect of pulling their NG average prices higher.

    Their NG production comes mainly from the Hunton which is very liquid rich, thus on average they are still making good returns from this field; however there is a key factor to consider, drilling in the Hunton helps them convert their Mississippian acreage from held by lease to held by production, conserving this coverage is vital to the future development of the company, currently 11100 acres are held by production, and 8700 by lease, by Q1-2012 the held by production will be increased to 13000 acres (20 contiguous sections).

    By all means, I believe their whole cash flow outlook for 2012 will change once the Mississippian plans are put in place, the company expressed an interest in developing this acreage without investing its own capital, thus a farm out or a JV that is cash flow positive is very likely; I believe the acreage location and prospective is attractive enough to get a partner on good terms.

    Regards,
    Nawar
    Dec 19, 2011. 10:16 AM | 3 Likes Like |Link to Comment
  • Equal Energy: An Unparalleled Opportunity [View article]
    Hi Steven,

    Indeed nothing concrete has been published on the Mississippian capex budget as of yet, in my latest email exchange with the CFO he confirmed that currently they are looking at alternatives to develop the Mississippian, he mentioned a farm out as possible model; while he did not provide any specific dates, my guess we should hear something on the matter in Q1-2012; it is also worth noting that their first Mississippian well will be fracked next month, we may hear some production numbers shortly after.

    Regards,
    Nawar
    Dec 18, 2011. 12:08 PM | 1 Like Like |Link to Comment
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