"We discuss wells exactly like discussing women, they are all different, and each responds differently to different ways of stimulation. (not being nasty here). "
Makes sense to me.
Sailors say "she" when talking about their vessels, oilmen say "she" when talking about their wells.
Women, ships and wells are all mysteries we guys need to treat carefully, and with respect, if we want them to be good to us.
bet it is, nothing is cheap though. Depends on rate of return in doing that, versus pressure maintenance and ultimate well recoveries. And well results will also vary from well to well depending on reservoir quality also. Takes a while also to quantify results and see which is working better. We discuss wells exactly like discussing women, they are all different, and each responds differently to different ways of stimulation. (not being nasty here). Some chemical treatments work well on 1 wellbore and another 300 feet away may not respond at all. Depends on the rock. Same goes true with horizontals, sweet spot wells may do great with horizontals, while in bad rock, horizontals may require fracs even to make a marginal well.
My wife must have been on the computer this AM - this last was my message, but her Yahoo sign-on.
Also I clicked on the wrong icon and published the message before I was finished...
The Cannacord Genuity presentation of Crescent Point is very interesting. The discussion of the increased recovery in the horizontal with concurrent water flooding takes place about 10 minutes into the presentation. The other advantage they get is that they get to EUR much, much quicker (40 years sooner!), by using the flooding.
I agree with your assesment of the PostRock acreage...I lost money with PSTR - and hope that MHR's drilling on those acres makes some of that back for me.
Thanks for your comments. NGAS seems like it is the kind of play Gary likes to make - cheap and lots of potential that has gone unrealized by existing management.
I was particularly interested in Gary's comments re: pressure management. Bought some shares of Crescent Point the other day after I heard them talk about using water flooding techniques alongside new horizontals that have been sstimulated with multistage fracs. They've seen significant immediate improvement in those wells, and are forecasting significant EUR increases (>30%). Made sense to me as it seems cheaper to do initial and secondary stimulation in a field at the same time. (Good graph of their experience shown on slide 11 of the Cannacord presentation.)
Wonder if this is what Jim Denny and crew have tried?
oh and i think you will see a rally at 9:30 CST when the oil inventories numbers from the EIA come out as the API numbers showed a 7.5 million draw in crude last night.
If crude oil rallies, this will rally also.
i listened also, but thats not why i bought back in. My personal opinion backed by my experience tells me that although they get the shallow oil idea, the REAL deal is in the deeper zones. They are hoping the Marcellus, Utica, and Huron work. Because of depth, (being shallow) most horizontals don't work well. (no pressure or over-pressure to push the fluids into the wellbore). Can they make wells? yes. Are they GOOD wells? maybe 2-1 on your money. As Gary said, it all will depend on IRR ( internal rate of return) SMART!! I think the deep stuff is wwhy they bought NGAS. Postrock is a nobrainer-great acreage--going to make really good wells there.
rrb short skirts around the issues with vague statements. he trys to make all of us beleive that MHR is and overvalued stock. with that in mind he forgets what this company brings to the table and thats the fact that growth stocks must be bought on future and not past preformance. when investing in MHR you have to project what the company brings as far as future prospects not whats on paper. he trys to point out that theres delution comming and thats a scare tactic. the outstanding shares only amount to 68 million really not that much. KOG has 173 million and is about $ 6.49 so when you compair you can see were not that deluted. also when you throw the growth that MHR has done in just the last 12 months and projected growth for forward 12 months you can't ding the stock. just booking new reserves and 24 new wells in 2011 as well as the adation of the pipeline revs this is a 10-12 stock by 2012. i'm a long with a trading position not-a-short has no leg to stand on and any person on this board is laughing at his attempts at bashing. we will have ups and downs in 2011 butr in the end MHR doubles in market cap because of numerious additions in capital
I all fairness, I do believe it is possible that not_a_short has no position. I have bashed stocks on other boards for sound reasons even though I have no position.
Perhaps he is doing graduate work in psychology and this is part of a research project on human emotions. Though I disagree with short, I am getting to the point of considering pulling the trigger on all my holdings and going to cash.
Rising rates, a China slow down and possible crash of the euro combine to give me a very cautious temper.
Long term, I think MHR will be great, but I may make more money by trying to sense a top in oil prices. If my feelings get stronger, I may sell it all and buy DUG (the short oil ETF). I hit it over the fence in the summer of 08 with calls on DUG when oil went to $30 and it might happen again. I would say now that such a sell off is about 15-20% possible event.
Anyhow, it seem fruitless to demand short "admit" his position is driving his speaking. Perhaps his only position is warped thinking, not a short sale. Let him spew his stuff...respond with reasons and facts, and let it go.
At least Tacoface is absent.