I quote verbatim: "Gasfrac has shown significantly better results"
They did three wells with the company (two verticals and one horizontal).
You can listen here:
I believe this is why we are up 8%-9%.
more from the Q&A:
They repeated again that they had great results with the vertical/horizontal wells; they mention 40% IRR on $85 WTI with those wells.
Listening to that call, I assure you that anyone with acreage around Quicksilver in the Niobrara will be looking at doing an LPG frac.
from CC: biggest players around the Quicksilver acreage: Shell, Continental Resources and Armamex?. Shell is the biggest.
Shell is our client as well, if we Gasfrac was to secure a contract with Shell in this basin, the stock will react very favourably.
I have an impression the Quicksilver CC was Gasfrac coming out party for the US investor community; several analysts asked about the LPG fracked Niobrara results; if they come with a contract soon, I doubt we will see much of a retrenchment, as a matter of fact, I am not we are done running for today.
Great catch Nawar
After listening to that call, particularly the questions by Spirit from BMO Capital Markets trying to establish the ratio of oil frac/gas frac productivity, and the way management deferred the question, it made me think the oil frac results might have been awful.
My takeaways from the call -
Niobrara marginally (at best) economic with oil fracs elevated to 40% returns with Gasfrac
30 miles of Sandwash Basin covered by first six wells - 1200 thick section - multiple carbonate pay zones - a "huge" resource.
70 wells permitting right now - will drill as fast as cashflow allows
lots of analysts who may not even know the name just got "Gasfracked"
My spidey sense tells me this is very, very good news!