Although I believe that END is turning the corner, I've sold a big chunk of my END holdings the past couple of weeks. I still own some shares in my IRA for the long term.
In the short term, I think they still have some bumps in the road. Not the least of which is this Qtr's earnings (or lack of it). Financially, the 3rd qtr is probably going to be really bad. No production from Rochelle, Alba production maintenance, and natural declines probably means another loss and cash burn - probably worse than the 2nd qtr.
They have a big hole to dig themselves out of. A huge amount of debt at high interest rates. Also, they sold future production for cash up front to get them through the liquidity crunch. Rochelle production comming online now will help. They also need to turn the corner on Alba production with their planned improvements. If I start seeing the light at the end of the financial mess tunnel, I will be a buyer again. GLTA.
EXXI mentioned recently that the EXL III rig will come to FCX in December and first be used to complete Davy Jones #2 in early 2014. They then said that the EXL III rig will move on to BBW #2 (SS188) after it is complete with Davy Jones #2. So, I would think sometime in the 2nd Qtr 2014 it will be moving on to BBW #2 assuming all goes well at DJ2 (which has not been the case yet for these UD wells).
I'm suprised they need to use the high spec EXL III rig for the BBW#2 completion, but I guess they want the extra hook load & pressure safety.
With FCX's comments today, if I Had a guess as to Exxi's ambitions to sell some/all of its UD interests I would say something could be in the works with CVX. I'm thinking FCX would possibly sell down their UD interest along with EXXI to CVX enough that CVX takes over operations. Something like CVX obtaining around 50%, FCX maintaining around 40%, and EXXI just keeping a small orri. Just speculation on my part.
Here is the commentary I found on pumpkin ridge copied from seeking alpha transcript:
Stone is the operator of and Tomcat. We have several additional attractive prospects being developed in our inventory and are keen to drill them in 2014 and 2015. One of them is the Pumpkin Ridge prospect, which is a new prospect in which we just acquired a 100% working interest and approximately 14,700 acres over the geologic structure.
This is an Ultra Deep prospect similar to the Lineham Creek prospect being drilled nearby by Chevron, as well as has been reported by one of the partners is being productive in the Yegua sand, which is younger and shallower and thus less expensive than the Wilcox objective originally planned for the well. We still have a lot of work to do, but this may turn out to be an exciting opportunity for Stone in the future.
Lycos - JS stated in his last presentation about a week ago that they were stopping on the sidetrack and would not take it all the way down to the Wilcox. They are setting pipe now across the yegua sands and will T&A the well until they are able to complete it (25,000 lb equipment).
I'm not sure myself. Unfortunately, this is one of the stocks that I have recently shorted to hedge my portfolio against a market drop. Not working out so good.
Maybe buyout talks are taking place - as I think the stock is expensive based on fundamentals. Both trailing and forward PE is above 30 and the only time the stock has been higher is in 2000 before the nasdaq bubble burst.
Check out SONRIS for the Highlander well. The set pipe just above the target Wilcox section a couple of weeks ago, drilled out about 400', and already logged. Thoughts are that they found something good (possibly the Wilcox top A/B sands) which bodes well for the rest of the Wilcox section in this well.
Do you mind providing your confirmation source?
They don't have the EXL III rig yet, so maybe they are setting up the plumbing to hook DJ2 up to the production platform? DJ1 already has the plumbing to the prod platform setup, but I don't think they did this yet for DJ2. Still think the EXL III rig goes to DJ1 first to do one last try their with a frac. CRR announced in a presentation that they developed a high pressure frac proppant to be used in the GOM for wells deeper than 30,000'.
Davy Jones 2 is a 1Q14 item. They have been waiting for special high spec completion components that they have stated will be ready in early 2014. They have also stated that DJ2 needs activity to start prior to mid January (lease hold considerations) and they plan to do just that. My guess is that the EXLIII will be first used on DJ1 in Nov & Dec before moving over to DJ2.
My guess was wrong. The Rowan fleet report came out today and the Rowan Louisianna got picked up by another operator after October.
Maybe they will use a different rig.
Davy Jones will use the high spec EXLIII after it is done with Walter O&G - which should be within the next few weeks. Blackbeard West #2 (SS188) can use a conventional rig. The Rowan Louisianna looks like it is coming available in October. My guess is they will pick it up for SS188.
I was wondering the same thing P38. I'm contemplating whether this is a possiblility:
CVX wants in on the UD in a more meaningful way than their current participation (Highlander plus some joint leases on England, DJ1, and in the Blackbeard area). But, EXXI's WI is a little too small (~13% avg, I believe). So they look to get about 10% from EXXI (leaving EXXI with a small ORRI) along with a piece of FCXs ~70% in a 3-way deal. EXXI would get a big cash injection and will no longer need to allocate capex to the UD going forward - while keeping the small ORRI potential upside. FCX can de-lever some as well as spread out some of the UD risk. CVX gets into the UD in a more major way. Thoughts?
P38 - appreciate any color you can give on the initial Zeke stats posted on SONRIS:
COMPLETED 9/12/13 AS A OIL WELL IN THE 5800' SAND RES;PM F; 311 BOPD; 78 MCFD; 100 FTP; 860 CP; 26/64 CK; 109 BWPD; .05%BS&W; 251 GOR; 26.6 GRVTY; PERFS 6182-6202' (ST: 10)
Have GULTU units in my IRA, along with some FCX. Also, been playing around with some SARA and still hold some EXXI.
It's hard to be anxious with the UD - will likely take many years to play out. Much like the deep water did.
Correct pj8 - Walter O&G had a blowout and the Rowan EXLIII (which was on DJ1) was the closest rig to drill the relief well. Since then, Walter has been able to temporarily plug the blowout well and has gotten approval to change the well that the EXL III is drilling from a relief well to a regular well to produce from the reservoir (draining the reservoir will reduce the pressure and then they can go in and do a conventional P&A of the blowout well).
The EXL III rig should return back to DJ1 after it is done with the Walter well - probably early Oct. They will attempt a large scale frac job at DJ1 to see if they can open it up (from the mud/barite damage that occurred in the original completion attempt/fiasco). Then, the EXL III will probably move to DJ2 early next year to complete either the cretaceous carbonate section or the Tuscaloosa sands.
I wonder if Walter O&G will compensate FCX at all for the inconvenience/expense of moving the rig off DJ1 in the middle of operations there?
When you say "they seem to think they have something" - where did you hear this?
So far, I don't think they found anything in the Yegua section. I say this because:
1) The latest EXXI presentation has a slide with all the UD wells including highlander. The highlander well is depected in the slide as in the top of the Wilcox. The drilling cartoon so far does not have any oil/gas shows or discoveries - which they have depicted in the past even when the well is not fully drilled.
2) The latest comments from JS did not seem too positive on the Yegua at highlander.
As per latest SONRIS, they just set a liner and were attempting to drill out of the liner when they got the pipe/bha stuck at around 25,000' - so they have that to deal with before drilling ahead to the target Wilcox sections.