have fallen into the same slumber that most
investors have regarding the Bolivar. Management, working
with Columbia (Columbia has to pay 1/2 of the pipeline
costs) has chosen to construct a pipeline that will
carry 150,000 barrels per day.
I agree, I can't
wait to see 30,000, but that is short term thinking
when it comes to the oil in the Bolivar.
won't spend the $'s to build 150,000 just to carry
When an order, especially a huge one, comes
across the board but does not effect the ASK or BID
size, it is usually a "CROSSED" order. Crossed orders
are transactions between private parties, never the
less, the SEC requires that they must be reported,
documented, and approved by the exchanges.
I understand the drill where the trading is 1 for
1 mapping. However, I think the guys running the
HEC trades (AMEX - what? specialists or floor brokers
or market makers?) are doing a lot of trading from
inventory. Of course they are not going to go to one extreme
or the other unless they are trying to build a long
position, or have built one buying from the short sellers.
Given the trading pattern today and my own brief
glimpse I expect the 70k deal was a non floor person
""not all trades at bid are sells...Earlier I
mentioned that I bot 4k at 1 15/16s when the ask was a
solid $2. I see 70k listed at 1 15/16s. I am guessing
it is just as likely a negotiated buy like my much
smaller leap ourwards.""
You are playing a
For every seller there is a buyer.
All trades entered at BID are MARKET sell orders.
MARKET sell orders sell into limit buy orders. Example:
Let�s say I want to buy HEC at $1 15/16. Since the ASK
is $2 if I enter a MARKET buy order I get charged $2
per share. So I enter a limit buy at $1 15/16 and
hope somebody enters a MARKET sell order and that
there aren�t too many people ahead of me. If the BID
size is small, I�ll have a decent chance of my order
getting filled otherwise there is a good chance my order
will go unfilled.
oil maintains a $15 a barrel price and if HEC
gets production up to 150,000 BPD, the net cash flow
to HEC will be $250 Million per year.
long view to hold for this, but if HEC realizes the
above, the stock price will be quite high.
The cost per "barrel of crude oil" changed to
"operating companies" by government agencies, in the form of
taxes and royalties. In those Middle East countries
where nationalization is not yet total, calculations
are based on averages between the cost of "equity"
and "participation crudes," less production costs.
This system is replacing the "posted prices"
I also get about $20 million revenue per quarter
assuming the pipeline is at 30,000 bopd, HEC's Colombia
oil sells at about a $2 discount to current oil
price, and excluding Ecopetrol share of production.
Although HEC will recieve the cash for Ecopetrol share of
the production untill HEC recovers 200% of Ecopetrol
share of cost, I do not believe HEC gets to record it
Also even after the pipeline is
finished, it may take sometime to finish and connect wells
to get to 30,000 bopd. Aditional pumping stations
and other expenditures will have to be made to
increase the pipeline over 30,000 bopd. But I agree that
the revenue and cashflow should be very good and many
times our current level once the pipeline is in place.