I made good money on SDT and now for the oversold PER. If it goes down I will buy more. My only problem with these trusts is the spread and the fact that a large buy needs a limit because the price changes. This trust is in the Permian, it is the strongest of the three trusts. Oh and I increased my SD position today as well..
Yes, but WHAT are their obligations (as contained in the prospectus) ? That document is clear on the issue. BTW. It makes a good read ...
He has no idea what he is trying to say. This guy is on just about all MLPs and trusts boards for YEARS, doing nothing but making silly ominous sounding statements. He has never invested a penny in the space (long or short) so it's a mystery why he gets his kicks in that way.
No, I don't think that's the question. We know they will stop all drilling activity for the trust as per their schedule. SD has no such limitations regarding their own production. You don't need to be einstein to realize that SD is not going to spend a penny beyond their obligations.
So, still no credible answer on the decline characteristics of these wells after the end of the drilling obligation. The logical conclusion is that nobody knows.
Just prior to the close. Was looking at other stocks and forgot about PER, then noticed the low price. Has to be desperate souls selling for tax losses, of course to offset other gains most likely.
My last sale was last week at 13.19.....was actually a small loss on shares bought @ 13.30. Overall, I've done quite well trading PER back and forth and around the x-div date.
isn't the question "what would SD do re these Trust wells if these wells weren't trust wells? " ? The prospectus says SD will use the same efforts and practices in either case .
I still can't believe how SDT is trading.. From what I read SDT is trading at a premium compared to SDR. Drilling obligations and subordinates have been met on SDT and yet it climbing well above the $9 lows.. while SDR flounders at the $9 lows.. granted SDR distribution was lowered but they still have more drilling and subordinates to fall bck on..
My assumption is that there is no more fracking once the drilling obligation is complete in a year or so. So the question still stands...how long will these wells flow if there is no further fracking or "work overs"? Yes, no doubt the wells could keep flowing a long time with continued fracking. But that misses the point that this is a trust with a fixed drilling obligation which finished in a year or so.
Only time will tell. The family has been involved with wells in the Permian since the early 50's.The wells drilled are in the San Andreas formation about 5-5300 ft. Of the three drilled in 1952 which only had IDP of 38 BOPD are still producing at 30 BOPD. Only work overs , hot oiling and general maintenance have keep these pumping. We have had some newer wells where we went in and refracted to increase production.I don't know how the PER wells will be maintained down the road. Maybe someone with knowledge of this trust can shed some light on this. If properly maintained and with new tech there is no reason that these will produce a long time . At what production rate who knows. Oil is still a #$%$ shoot.
I may be wrong but when the well is drilled it gets you to the rock. Then the fracking begins. Per wells are between 4k and 7k or there about. Possibly the fracking begins at 4k and ends at 7k as an example. It's projected there's more oil than in Saudi. It reasons to me it can't be pumped to quickly. Just my thought.
I am also sceptical about the comment, however your statement does not imply anything.
Yes, oil has been produced for a long time, however that has been with a lot of drilling. The question is what happens when the trust stops drilling, which will happen in a year or two.
At that point there will be no further fracking or any type of well development, which is something different to the 85 years of production history you refer to.
If these wells are reservoir type wells with sufficient pressure to keep the oil flowing, then maybe no issue. However if these are in tight rock which needs repeated fracking to maintain the porosity of the rock and keep the oil able to flow through the fractures, then it may be a concern.
Saying that the PB has been producing a long time with continuous drilling and fracking does not tell us anything about how the wells behave without it.