My math says 1 TCF X $11 mcf = $11,000,000,000.
I know the possible reserves are not yet official and the price can change and it takes time and costs money to get it out of the ground.
But this stock has a marketcap of only $32 million.
Either the reserves don't exist or this stock is going way way up.
It looks like an average of 3/4 bcf of natural gas reserves in the Mancos Shale almost guarantees every well can at least break even just by doing a completion in the Mancos Shale. The Mancos is everywhere.
But the Entrada is in some places and the Dakota is in a lot of places. I see 1 Trillion cubic feet of reserves as being conservative when one figures in the Mancos Shale.
Even without the Entrada or Wingate formations most of the wells Royale drills in Utah will have some combination of the Morrison, Dakota, Mancos Shale, and Mesa Verde formations.
GSX is estimating the Mancos Shale is adding about .75 Bcf of reserves per well. Some of the Dakota wells drilled by Questar have reserves over 10 Bcf just from then Dakota formation. The non-Entrada wells should average at least 2.5 to 3 Bcf per well, perhaps more.
I think the deep wells Royale will be drilling will stay on 40 acre spacing. This should give them roughly 350 potential net wells in Utah.
With the Entrada wells averaged in with the Dakota wells it should be easy for them to claim one trillion in possible reserves in Utah.
And don't forget, WLL reports after market close this Wednesday, Conf Call is Thurs --http://biz.yahoo.com/prnews/080715/latu039.html?.v=101
WLL talked about their Flat Rock purchase in their last Conf Call, and promised more information for the Q2 call. Fair or foul, ROYL's likely to trade on whatever that news is. Looks like market is expecting good news -- WLL's up $2 thus far today.
Fastball, I totally agree with you on the partnership. Once they have the next 2Q reports out of the way and show some good numbers on there wells they will sell up to 25% interest.
The reason for this is 2 fold:
1) It establishes a true value of the company so that they are no longer a $50 million company. Looking for $1 B or so value. Majors players are now making investments in NA production/potential (BP invested $1.5 billion in Chesapeake, Petrobas bought % of a company in Utah). They have great deal of money and need to invest in more stable and future growth potential.
2) Allows them to develop their other properties with the cash infusion.
How is it possible that there are close to 1.5-2 m shares short, when there is very small float especially when you consider insiders and institutions own about 2 m shares. Major covering will have to occur in the next couple of months.
Again this is only opinion but would welcome any feedback.
The Company also drilled three wells in Utah, one of which is commercially productive and two others will be completed with the arrival of spring.
The Company owns interest in over 19,000 contiguous acres in the Uintah Basin, Utah, where it has confirmed the prospectivity of multiple formations within its entire acreage block. The use of 3-D seismic exemplifies the Company’s commitment to the utilization of forward-looking technologies to reduce risk and enhance returns in exploration and development.
Lots of companies are sitting on lots of 3-D with interesting formations. That's why they call them "prospects." If anyone has more definative info on test well data I'd like to see it.
Until then, ROYL is an energy stock with a small float that provides plenty of volatility and opportunity to grab a buck or three on swing trades. I'd appreciate any info anyone has that is more specific as to their Utah PROSPECTS.
<<<<<"Royale also owns non-operating interest in 17 oil and gas wells in Texas, three in Oklahoma and two in Louisiana.
As Royale Energy develops its sizable acreage position into production and cash flow, investors will enjoy the benefits of a company abundant in natural resources.">>>>>
Nat gas touched a new high for the year this morning. Just wait until the scorching temperatures are factored into next weeks report.
The market is starting to get very worried about meeting storage requirements. LNG is not coming into the country because we are being outbid overseas. And, Canadian storage is well behind last year and Canadian production is down slightly. Less gas is coming from Canada this year.
What if hurricaine enters the Gulf?
E&P sector down today not up storage numbers about average and adding to not taking away from storage. I agree a really hot summer and a hurricane could make thing interesting but the price of oil will do more for the price of ng than those factors. If the bubble burst in oil the price of ng drops as well. I still think the price of Royl is more driven by UTAH than ng price as it will not drop too low. I dont know about the 11billion but if the news is good the stock goes up a lot.
$11? Utah is $200 news and your wondering about a $2 rise in the stock price.
Go look at all the natural gas everyone suroounding ROYL has found. Look at natural gas heading for $13.
Do the math man do the math.
You mean there is Natural Gas on Royale Energy's land in the Uinta Basin.
Usarcomman9, please ask if there is any Wasatch gas on the lease and whether or not there is any oil on the lease, or oil shale.
Have a safe trip.