If they have $5 million to spend...I suspect their priorities may be as follows...
1) South Rangely...dig down and hit black gold... 2) Pump more water into Woodrush... 3) Prove North Rangely has hydrocarbons of some kind... 4) Important...I hope they don't spend it right now on Gibson gulch...that property can wait...no pipeline there yet and NG price low...timing counts, and $5million bucks says they don't need to be in a hurry...
I suspect Bill Barrett is thinking the same thing...timing...here is a more full quote on Bill Parrett plans...
"Natural gas activity will be reduced by $120 million while oil activity will be increased by $30 million. The company said it will stop drilling at the West Tavaputs field in Utah and drop a third rig from its drilling program in Colorado’s Gibson Gulch.
“We will produce our natural gas reserves in a manner that delivers the best long-term returns to our shareholders and, given the current forward pricing for natural gas, we have decided to cut back natural gas drilling activity,” Fred Barrett, chairman, CEO and president, said in a statement."
All IMHO...I bought more today...hope it drops lower so I can load another truck....my guess is probably no news until March 31 when Q4 comes. I suspect they will have a conference call at that time...If anybody disagrees or has things to add...please post...I really am beginning to believe that DEJ can make us some $$$...hope so anyway...Time
FWIW ... I talked to someone with the company yesterday evening and it was put very clearly to me that Kokopelli is indeed the top priority - by far - for 2012. The NGLs, they believe, can still deliver a substantial amount of revenue in 2012, not to mention the light oil there.
I also did not get the impression that North Rangely is going to be put up for sale any time soon. That may happen down the line, but only after reserves have been proven.
I did not get the impression that there was a tremendous rush on South Rangely. I think a possible JV agreement could happen in Q3 or Q4. That would be the only way I see anything getting developed at South Rangely later in the year/early 2013.
I came away very much at ease with the long-term goals of the company, so I will be upping my stake in the coming weeks. I wasn't able to take advantage of the numbers today, unfortunately. But I will be adding to my position, for sure.