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Richard Zeits  

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  • SandRidge Energy: A Recapitalization Or An Incremental Borrowing? [View article]
    Fliper2058,

    My estimate for combined PDP + PDNP is ~$2.7-$2.8 Bn, + market value of hedges.
    May 29, 2015. 05:19 PM | 1 Like Like |Link to Comment
  • SandRidge Energy: A Recapitalization Or An Incremental Borrowing? [View article]
    Fliper2058,

    I would argue they have the dry powder to go the Ford route. Does the Board have the resolve?
    May 29, 2015. 02:21 PM | Likes Like |Link to Comment
  • SandRidge Energy: A Recapitalization Or An Incremental Borrowing? [View article]
    Firsttracks,

    Great points. I will try to post a note over the weekend to reflect on the outcome of the offering. It appears that SD has a very strong hand as a result. If the Board does not use this singular chance to restructure the company's liabilities in a most radical way, another chance may not come along.
    May 29, 2015. 12:21 PM | 1 Like Like |Link to Comment
  • SandRidge Energy Preferred Convertible: A 21% Yield Paid In Shares Of SD Common [View article]
    http://seekingalpha.co...
    May 29, 2015. 11:17 AM | Likes Like |Link to Comment
  • WPX Energy: Turnaround Upside [View article]
    FBIR is big. I believe other companies that have exposure are MRO, XOM, Hess, Slawson and I am sure others (Newfield is mostly non-FBIR). Please keep in mind that there is a lot of non-op exposure.
    May 29, 2015. 09:47 AM | 1 Like Like |Link to Comment
  • Crude Oil: Record Domestic Production Amidst Bottoming Rig Count Screams 'Strong Sell' [View article]
    It's interesting how we all look at the same numbers and interpret them so differently. That's what makes a market, I guess.

    To me personally, from a supply/demand perspective, the higher domestic production number posted by EIA is a non-event (for reasons that would be too long to discuss in a comment).

    If I were betting on a higher oil price, I would probably be disappointed by this week's report. However, if I were betting on a price decline, I would not find much reasons for optimism either - in a grand scheme of things, if storage is depleting, that is all that should matter to me. (Even though, I admit, interpreting the depletion can be a challenge).
    May 29, 2015. 09:22 AM | 10 Likes Like |Link to Comment
  • WPX Energy: Turnaround Upside [View article]
    Scooter-Pop,

    A complex question. I am working on a "Oil Strategy" piece that will put on balance several moving pieces. (The material will likely go into the macro newsletter, per my commitment.)
    May 28, 2015. 09:30 AM | 1 Like Like |Link to Comment
  • WPX Energy: Turnaround Upside [View article]
    User 3636401,

    Thank you for the substantial comment. Very keen observations. There are several mechanics of the supply/demand balance that I would interpret for myself differently, but you are making many terrific points. In fact, I've discussed some of these elements in the OIL ANALYTICS Newsletter (if you were a subscriber, you might have found relevant last week's deep dive that discusses exactly the inter-relation between the rig count plus several other factors and production trend in the Bakken; another deep dive is coming this week).
    May 28, 2015. 07:29 AM | Likes Like |Link to Comment
  • QEP Resources: High-Intensity Completions Increase Early Well Performance In The Bakken By 85% [View article]
    Frac4Crude,

    Great points. On the downspacing, if I recall correctly, they mentioned an estimate of a 65%+ downspaced EUR relative to a "virgin" well (which they thought might be conservative).

    South Antelope is a terrific property, so I would not be surprised that even downspaced wells worked economically. Existing infrastructure + well control should be a benefit.

    A successful downspacing would certainly be helpful - it is not a huge block, locations are obviously not unlimited.
    May 27, 2015. 12:43 PM | 1 Like Like |Link to Comment
  • QEP Resources: High-Intensity Completions Increase Early Well Performance In The Bakken By 85% [View article]
    Pablomike,

    Sorry for the confusion - the metric is "gross barrels per dollar invested." If you inverted and add ~20% (for royalties), you would get something along the lines of "development cost." Again, the calculation was not meant to be precise but rather illustrative to show how strongly the result depends on the incremental cost of a complex frac vs. incremental formation response.
    May 27, 2015. 12:36 PM | 2 Likes Like |Link to Comment
  • Oasis Petroleum: Success Of High-Intensity Completions Drives Cash Flow Neutrality At Lower Oil Prices [View article]
    Here is an example of Newfield's water treatment capacity in Utah (I thought this could be a relevant real-life illustration):

    Newfield’s Uintah Basin water treatment operations in Utah began in April 2011. The company’s state-of-the-art Sand Wash facility consists of two processes.

    "This includes "conventional treatment" to water readily suitable for water flood injection. Conventional treatment can process up to 10,000 barrels of water per day of produced water (the fluid that comes out of well bore consisting of oil, gas and water). The produced water is separated at the well pad from the oil and gas. The produced water is currently trucked to the Sand Wash facility for treatment and is eventually re-injected into the producing formation for enhanced oil recovery.

    Another process at Sand Wash is the “Environmentally Clean Systems” (ECS) treatment of produced water that requires additional processing before reinjection.

    The facility can recycle up to 18,000 barrels per day of this produced water that would be otherwise unusable for enhanced oil recovery. The ECS process allows the Company to more comprehensively remove "solids" and residual oil from the water so there is no "plugging" of geologic formation that might impact permeability.

    Newfield currently operates the Sand Wash and six other facilities (and one yet to be built). These additional facilities are similar to Sand Wash but only Sand Wash has ECS."
    May 27, 2015. 08:48 AM | 1 Like Like |Link to Comment
  • QEP Resources: High-Intensity Completions Increase Early Well Performance In The Bakken By 85% [View article]
    This was specific to Pinedale.
    May 26, 2015. 05:44 PM | 1 Like Like |Link to Comment
  • Oasis Petroleum: Success Of High-Intensity Completions Drives Cash Flow Neutrality At Lower Oil Prices [View article]
    Craig,

    Thank you for the link - very helpful. I will study over the weekend. (I may even have a hard copy of the JPT in the big pile that, to my shame, I receive by read only sporadically).
    May 23, 2015. 08:59 PM | 1 Like Like |Link to Comment
  • Oasis Petroleum: Success Of High-Intensity Completions Drives Cash Flow Neutrality At Lower Oil Prices [View article]
    Frac4Crude,

    Thank you - precisely my point.
    May 23, 2015. 07:40 PM | 2 Likes Like |Link to Comment
  • Oasis Petroleum: Success Of High-Intensity Completions Drives Cash Flow Neutrality At Lower Oil Prices [View article]
    Scooter-Pop,

    Interesting questions. On geology, I would add to that, what is the Arbuckle's potential storage capacity for the injected fluids? What are the porosity and natural fracturing characteristics? What is the permeability for water (i.e., what is the volume that can be absorbed and what is the volume that is forced to propagate via artificially induced fractures as you seem to suggest might be the case)? What is the danger (or lack thereof) of effectively fracking through into the group immediately above?
    May 23, 2015. 10:41 AM | 1 Like Like |Link to Comment
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