Fri, Dec 26, 2014, 2:22 AM EST - U.S. Markets open in 7 hrs 8 mins

Recent

% | $
Quotes you view appear here for quick access.

Mesa Royalty Trust Message Board

  • dinkdestroyer dinkdestroyer Apr 24, 2013 1:47 PM Flag

    Mancos Shale upside on Mesa lands

    Following research from McDep:

    Buy
    -
    recommended
    San Juan Basin Royalty
    (SJT)
    as well as
    Cross Timbers Royalty (CRT)
    and
    M
    esa Royalty (MTR)
    offer investors participation in the early stages of what may be a big
    play
    in the Mancos Shale according to presenters at the San Juan Basin Energy Conference in
    Farmington, New Mexico on March 18
    -
    19.
    I
    ndependent producer T. Greg Merrion
    , the creator of
    the subtitle above,
    outlined the
    opportunity
    .
    The
    i
    ndustry is just three years
    into the early stages
    with the drilling of 22 horizontal wells (see
    Timeline
    on page 2
    ). Ultimately thousands of wells
    could be drilled into the thick Mancos formation covering 4000 square miles
    (see
    calculation
    by
    Mr. Merrion
    on page
    2
    ). The Mancos d
    ivides into
    three “windows”

    dry gas, wet gas and oil
    (see map on page
    3
    ).
    M
    arvelously detailed in a presentation by Ken McQueen,
    WPX Energy has
    proven the commercial
    viability
    of the dry gas area
    .
    Most of the activity to date has been in the
    shallow
    er
    oil area where
    l
    arge
    c
    ap
    Encana
    (ECA)
    has had some good wells and some not so
    good, suggesting both the promise of the opportunity and the need for more work. Shale wells
    typically get better with experience.
    Large cap
    ConocoPhillips (COP)
    has the only completion
    in the wet
    gas area, the Yert well that we have previously indicated as a
    n unconfirmed
    success.
    Perhaps half or more of SJT acreage may be in the wet gas area, the window that may be the most
    profitable.
    Because
    drilling on SJT
    rights
    has to be paid from cash flow
    that would otherwise be
    distributed, there is no distribution for the current month (see table
    Monthly Distributions
    on page
    3
    ).
    Helped by a rising trend for natural gas price, cash flow supports our estimate of a
    7.1
    %
    distribution yield,
    though
    we could
    be surprised by the timing of drilling deductions (see table
    Financial Estimates
    on page 4).
    O
    utside
    the San J
    u
    an
    Basin
    ,
    p
    ractically
    all of our
    remaining
    income and small cap stocks have upside
    in one or more pla

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
MTR
26.36-0.34(-1.27%)Dec 24 12:59 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Virgin America Inc.
NASDAQWed, Dec 24, 2014 1:00 PM EST
Amira Nature Foods Ltd.
NYSEWed, Dec 24, 2014 1:04 PM EST