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Vintage Petroleum, Inc. (VPI) Message Board

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  • imadeadcat imadeadcat Jun 7, 2003 12:29 PM Flag

    VPI's ng expansion?

    My understanding is that the Distrigas facility has been in Everett for over 20 years( but the capacity has increased). My point on Saudi project remains. We need lots of big investment in compression or lng (ala Qatar) to solve the impending ng scarcity in North America. Agree VPI looks smarter now because prices are high. Yemen; lets hope VPI's future doesn't hinge on that find with all its' potential issues....my suspicion is that VPI will monetize those reserves when possible.

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    • Let`s hope that they do better this year with the drill bit than they have in the past. Also hope that get better prices for their products.

      If you look at the last three years, they have had cash flow of over $900 million and spent over $1 billion dollars on various purchases, drilling, and development.

      Yet the production over these years has only gone from 27,555 MBOE to 31, 326 MBOE ( excludes sold ops).

      Their average price per barrel of oil in 2000 was 22.85 in the US and in 2002 $21.78. Argentina which is the real gem in the company`s assets, went from $28.25 to only $20.98.

      Since over half of the company`s oil production came from Argentina in 2002 and also was one of the areas that had INCREASED production, that is the most important factor in this year`s coming results.

      For NG the figures are even worse in 2000 they got $3.91 per MCF and 2002 $2.85 in the US. Argentina, which for gas is a lost cause, went from $1.79 per MCF to only .37 per MCF.

      Gas production in the US fell by over 30% in 2002 compared to 2000. canada for which they spent al those hundreds of millions and which that have had all those write-offs, went from 312 MMCF to 29,951 MMCF.

      Production costs per barrel in the also leaped from $6.42 per in 2000 to $8.05 per in 2002.

      Looking to load up again after next week`s EIA announcment on gas storage on Thursday.

    • Yes, the Distrigas facility has been in Everett for over 20 years and it has been re-built with tremendous new capacity. There is also a lot more acreage available to increase the capacity more. The availability of cheep landfill due to the big dig and the move of the T orange line car barns to Malden have made this posible. There is also a new Ngas pipe through Boston Harbor leading to the south shore plants. It links the Dracut hub with this growing population. I believe the Saudi projects weren't accepted for Political reasons and that they involved companies the Saudi's didn't want to return to their country. The Yemen exploration, you should realize, is the only serious opportunity for Vintage to come up with much larger reserves without paying through the nose for them.