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Equal Energy Ltd. Message Board

  • nawaralsaadi nawaralsaadi Feb 9, 2012 3:14 PM Flag

    Brent at $118/WTI at $100

    and several US crudes like Louisiana light are trading even higher than Brent; yet a company setting on acreage with millions of barrels of crude is trading with a valuation of $0 for that asset.

    With 100+ locations, 456K EUR and 50% crude, that's about 22.8m barrels of crude; and 22.8m barrels of NG; all those barrels are trading at exactly $0; with a deal to unlock them days to weeks away.


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    • Nawar, 4th quarter production and reserves report due out thurs or fri. My understanding is that deal announcement will come sometime between this report and earnings on march 21

    • Nawar, always appreciate your input.

      However, I am a bit confused here. I thought the 50/50 NG/NGL was in the Twin Cities land to the south, while the Mississipian to the north was mainly oil. Am I wrong in this, or is it only oil for the vertical wells, but not the horizontals that then presumably are accessing a different structure?

      • 1 Reply to algrovenew
      • Alg; the company overall production mix is 50/50 liquids and NG (this include the hunton, cardium and the viking). The Mississippian however is also about 50/50 (52% crude and 48% NG), the difference between the Mississippian and the Hunton is that the Mississippian liquid position is pure crude (thus trading at WTI), while the Hunton contain mainly NG liquids (propane, butane) which trade at 53% of WTI.


    • I am betting on your dd. Spent the rest of the cash in the account when it went below 3.xx. You seem to know what you are talking about and everything i read says the same thing. Have had this one for about 6 years now and need it to go UP!

    • Nawar,

      Can you expand your comments on a deal days away? i am not sure I follow.


      • 1 Reply to jim.muench
      • Jim, in my communication with management in January, they mentioned that signing a deal (likely a JV or Farm out) for the Mississippian acreage is their top priority; while naturally they could not give me specifics; they mentioned that they expect a deal of some sorts will be signed within Q1.

        I also asked them about when they will frack, the Mississippian well that was drilled in Q3/11; they mentioned it will be fracked as a horizontal multi-stage within the upcoming deal; this further confirmed to me that a deal is very close, if they have already included the fracking of this well within the deal.

        This is why I believe a deal is days to weeks away.