ECA has announced results from the MI Utica shale in Kalkaska county . 6.5 and 3 million feet of gas WITH 90 barrels of NGL's per million feet of gas . With the better well producing 583 barrels of liquids a day , ECA is very excited about the wet gas potential in MI . BBEP has 100,000 acres of potential Utica shale , right next to the ECA property .
EVEP nearly doubled after the OH Utica shale frenzy . Is the MI Utica fenzy next ? Could BBEP be a double ? If MI well results continue to be positive , BBEP shareholders are poised to make a lot of money !
Clambo, that is what you did.
You were only interested in the point that you were trying to make and would not review the MHR presentation from last week.
If you re-read the thread.... why would I need to post the link to Gary Evans of MHR three times?
....and still you would not take the time to listen to what he had to say.
I do not make things up like some people, or tell only half of the story. I posted the link so that you could hear the whole presentation and all of the details.
You could have heard it and then commented, but instead you jumped to suggest that Roger argue with me. I was not trying to argue but merely to explain one of the reasons why I thought LINE was very smart to have sold the Marcellus property in 2008.
If they did not sell it, then LINE too might be redirecting funds away from Marcellus development like MHR is now doing.
If you listen to that MHR presentation from Enercom, from about a week ago and have an informed opinion....then, I would be interested to hear it.
If you are wondering why not everyone is not thrilled with sw pa marcellus plays, listen to conference call of trust fund ECT they have been waiting over a year to get a "permit" to build a small gathering pipeline less than one mile long. and without it they are basically land locked and cannot pump any more gas.
moneyonomic..., that is true, but that is not the reason that Gary Evans gives (which is clearly mentioned at the point in his presentation that I posted with the link THREE times for those bozos who would not bother to listen to it....shortly after the three minuite mark, when he discusses the MHR slide #7).
That Enercom presentation was only about a week ago.
He clearly gave the price of gas as the reason for pulling funds from Marcellus and redirecting it to Bakken & Eagleford.
He says that "with gas at $2.50 & oil at $105/Bbl that it doesn't take a rocket scientist, etc..."
The discussion about the delay of completions for Apalachis because of the reason that you mentioned comes later in his talk.
sand i think mhr is more deferring capital in marcellus until mwe sherwood plant is ready end of 2012 instead of mid 2012 to get uplift from ngls or at least that is the way I heard the conference call particularly when they were discussing eureka hunter line. once sherwood is up i understood capital would return in the form of completions and drilling
I cannot understand why Ellis is letting money burn a hole in his pocket.
The PXP Granite Wash deal was clearly an expensive deal, but I would argue that even at a higher initial multiple, it is far better of a deal than the Hugoton transaction.
I am not sure who posted it earlier today, but I agree 100% that Linn might actually be better suited if they divested some of their smaller holdings where they don't have critical mass.
I will say that the Hugoton is very low risk from a geologic/drilling standpoint. Even though I am not thrilled with this deal, as it appears Linn continues to dillute its GW,Bakken and Permian exposure on a per unit basis, it does add cash flow per unit.
I think what many people are disappointed about is that Linn went from being a "special" E&P MLP with some really attractive properties and the ability to grow organically to being more of a run of the mill E&P MLP similar to LGCY, VNR, BBEP, EROC etc.
I don't lump EVEP into that category because EVEP has a huge Utica stake that they will either develop, JV or divest.
I now firmly believe that Linn has bloated itself into such a large company, that they will struggle to achieve any sort of growth via the drillbit and will have to rely on acquisitions to achieve any distribution growth.
For those of you who still have difficulty using a calculator....convert the 600,000 acres to square miles and compare it to any county that you like to see how huge the new acquisiition actually is.
I just took a quick look and you will be surprised.
Then if you want to see it:
From that link.....zoom out 5 or 6 times using the minus sign at the left side & look at all of the green dots and you will see how huge the gas fields are.
The green dots are producing wells in those gas fields.
I am not argueing about it. I am merely point out something you seem to want to ignore but something that you should know about.
MHR said that they are PULLING money that was headed to develop Marcellus for now and spending it on their two other oilier plays.
You can hear him....start at 3 min.
He also says that it doesn't take a rocket scientist...etc.
He also says the reason....which is the present gas prices.
Ignore it all you want but I posted the link for you twice.
Furthermore, I still think that LINE did a very smart thing by selling it back in 2008 or they might also possibly be following what Gary Evans is doing right about now.
Who do you think might be next to follow him in redirecting development funds to oilir or more liquids-rich plays?