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Eagle Rock Energy Partners, L.P. Message Board

  • arbtrader69 arbtrader69 Jul 16, 2010 11:00 AM Flag

    Minerals

    I was researching some Haynesville assets the other day and ran across an May presentation by PetroHawk (HK) with extensive details on their production there.

    You will note that our former minerals position overlaps theirs and others on the maps.

    Most interesting is the last few slides of the Bossier Shale, a new emerging shale play directly on top of the Haynesville. Yep, you guessed it, on our old minerals.

    Of course we can never really know how much EROC would have captured in lease bonus, royalty revenue because Mgt never shared that detail with the owners.

    But, where our acreage overlapped the new shale we effectively gave away any Bossier shale upside, another 30-50% of EUR according to HK projections.

    So file it under shoulda, maybe and might have been.

    (But when I buy a lottery ticket, as EROC effectivly was in late 2008-2009, I want the powerball payoff and not the 10$ scratch off.)

    So just sharing with those that saw the value in the minerals. Regards, AT.

    http://www.petrohawk.com/pdf_files/section2.pdf

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    • Thank you for a significant valuable post. EROC is cheap today even without minerals if we look at just 'numbers'. Sadly it should be. The Eagle did not land on common unit holders but did make a direct hit with crap as they flew over the heads of enough unaware small individual investors.

      What a shame. SP projects the american economy will use at least 400% more of our domestic natural gas in a decade. Right place, right assets wrong management. I hope for small investors sake that they demand management payout cash flow rather than retain it for future 'growth'. Cash in hand escapes the necessary discount for lack of character, integrity and ethics.

      • 1 Reply to norrishappy
      • "Right place, right assets wrong management"

        Yes, it kind of makes you sick that we were sitting on top of one of the LARGEST hydrocarbon deposits in the entire world (ref the slides with EUR est) and it was just sold off so we can get a 10% dividend, maybe, in the future.

        And we paid mgt 29$mm for this brilliant, strategic move.

        Ha. Now I know how the indians who sold Manhattan Island for a few shiny trinkets felt.

        Regards, AT.

 
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