Resource Nationalism Behind OECD Energy Renaissance [View article]
All the supermajors still have significant high risk of nationalization by alien hosts. Even your pick, EOG, has chosen to risk shareholders' money in unstable and greedy Argentina.
There are lots of good US oil companies that don’t have a dime invested in high-risk foreign-controlled projects.
Investing in foreign oil is like checking in at “Hotel California" – you can check out, but you can never leave.
Eaglebine Oil Play: EOG Resources Forms A Joint Venture With ZaZa Energy [View article]
Thanks, the Eaglebine is an exciting play.
EOG is the winner here. ZaZa Energy shareholders lost 75% of ZAZA’s only interesting property. ZAZA executives gained just enough cash and carry to keep its high G&A going for a few years. On its own, ZAZA wasn’t capable of exploiting the Eaglebine; ZAZA’s record of completions is dismal.
ZAZA’s was the operator of a joint venture with Hess. This JV ended with an unhappy Hess negotiating its way out, and ZAZA being left with a marginal position in the Eagle Ford.
ZAZA is speculative. It’s a fun stock trade but risky to hold.
Cheniere Energy's LNG Project Close To Being Fully Subscribed [View article]
Yet another good article. The CEO of XTO was trying to get Gulf Coast LNG import facilities to reverse themselves and export. This was before he sold his firm to XOM. He realized that the Haynesville and big unconventional gas plays had tipped the scales. It has taken a long time to get this going.
I don't see this as much of a plus for domestic U.S. gas production. We're still looking at $3 - $4 gas.
EOG Resources (EOG) is the unnamed company teaming with ZaZa Energy (ZAZA) to develop assets in Texas' Eaglebine trend, an SEC filing says. For acreage 100% owned by ZaZa, EOG will be the operator and earn a 75% working interest, while ZaZa will retain 25%; for acreage currently owned 75% by ZaZa and 25% by Range Resources (RRC), EOG will earn 50% while ZaZa and RRC each will retain 25%. [View news story]
Good news, as this acreage needed a competent firm to develop it. Zaza is technically weak at drilling and completing. Essentially, Zaza gave away 75% of it acreage for a drilling carry. If this acreage is as good as it looks, EOG made a great deal. Zaza shareholders were the losers.
SandRidge Mississippian Trust I - Dramatic Decrease In Well Performance Shown In Reserve Report [View article]
CEO Tom Ward oversold the Mississippian. As you show: the production is lower; there is less oil and more gas; and the wells are declining faster. There is no silver lining unless a Middle East war sends the price of oil to $120 or more.
Gulfport Energy Corporation: What Shines Like Gold May Be Hay [View article]
GPOR is a Utica play. The rest of GPOR's assets aren’t worth talking about, they are just impedimenta.
I agree that at current market levels that WLL is a better bet than GPOR, but Value Digger's statement WLL has operations on the Gulf Coast is not true. WLL has nothing significant down there.
It takes time to establish a decline curve. If investors wait that long, it will be too late.
The whole market seems over-priced to me, including GPOR. I own no GPOR, but if the market makes a major retreat I be looking to buy GPOR or PDCE, whichever seem the best deal at the time.
Bakken: The Rail Revolution - Everything Investors Need To Know [View article]
A Trade Idea For This Rangebound Bakken Stock [View article]
Did The SandRidge Activist Investors Make A Big Mistake And Overvalue The Company? [View article]
I'm not sure what SD is worth, but it's worth more without CEO TOM Ward than it is with him.
5 Speculative Stocks That Could Soar By 2014 [View article]
To be speculative a stock must have some unique risk factors.
KOG no more volatile than any growth stock. It's vulnerable to weakness in China or India, but that hardly makes it speculative.
I don't own any.
Made In America: Re-Industrialization For Sustainable Economic Growth [View article]
Resource Nationalism Behind OECD Energy Renaissance [View article]
There are lots of good US oil companies that don’t have a dime invested in high-risk foreign-controlled projects.
Investing in foreign oil is like checking in at “Hotel California" – you can check out, but you can never leave.
Eaglebine Oil Play: EOG Resources Forms A Joint Venture With ZaZa Energy [View article]
EOG is the winner here. ZaZa Energy shareholders lost 75% of ZAZA’s only interesting property. ZAZA executives gained just enough cash and carry to keep its high G&A going for a few years. On its own, ZAZA wasn’t capable of exploiting the Eaglebine; ZAZA’s record of completions is dismal.
ZAZA’s was the operator of a joint venture with Hess. This JV ended with an unhappy Hess negotiating its way out, and ZAZA being left with a marginal position in the Eagle Ford.
ZAZA is speculative. It’s a fun stock trade but risky to hold.
Cheniere Energy's LNG Project Close To Being Fully Subscribed [View article]
I don't see this as much of a plus for domestic U.S. gas production. We're still looking at $3 - $4 gas.
EOG Resources (EOG) is the unnamed company teaming with ZaZa Energy (ZAZA) to develop assets in Texas' Eaglebine trend, an SEC filing says. For acreage 100% owned by ZaZa, EOG will be the operator and earn a 75% working interest, while ZaZa will retain 25%; for acreage currently owned 75% by ZaZa and 25% by Range Resources (RRC), EOG will earn 50% while ZaZa and RRC each will retain 25%. [View news story]
Don't Overlook The U.S. Dollar Factor For Oil Prices [View article]
Anything priced in dollars will have a generally inverse relationship with the dollar, as dollar is in the numerator. $/bbl, $/per-share, $/ounce.
You can reason this out by saying a strong dollar will buy more oil, or shares, or silver.
I keep a Euro/$ screen graph open at all times. It will roughly parallel things priced in dollars.
Chesapeake Granite Wash Trust: Updated Reserves Show Major Downward Revision, Buyers Beware [View article]
SandRidge Mississippian Trust I - Dramatic Decrease In Well Performance Shown In Reserve Report [View article]
Retirees were the target for this “trust.”
The Hess Eagle Ford Sale Sets Chesapeake Shareholders Up For Disappointment [View article]
CHK's Eagle Ford acreage is huge and very scattered. I think we can assume some of it has zero value and some is very valuable.
I suspect Hess felt cheated but has better uses for its money than to drill wells in a marginal part of the Eagle Ford.
CHK's acreage sale in the Mississippian also brought a low price.
My conclusion is that there is so much acreage in so many plays that it has become a buyers' market on anything but the premium tracts.
Many if not most E&Ps are fully leveraged and are not significantly increasing thier drilling budgets.
Note that Forest Oil (FST) fell 7.7% today. It claims an ROR of 35-40% on its Eagle Ford acreage. I consider 25%-30% marginal and 50% bonanza.
Google Narrows Offerings, And Narrows Market In Turn [View article]
Gulfport Energy Corporation: What Shines Like Gold May Be Hay [View article]
I agree that at current market levels that WLL is a better bet than GPOR, but Value Digger's statement WLL has operations on the Gulf Coast is not true. WLL has nothing significant down there.
It takes time to establish a decline curve. If investors wait that long, it will be too late.
The whole market seems over-priced to me, including GPOR. I own no GPOR, but if the market makes a major retreat I be looking to buy GPOR or PDCE, whichever seem the best deal at the time.