often...one party can not release information without consent of the other party. Some companies take great strides to keep others from knowing what they're doing. I just find this as being peculiar, but it very well may be totally legit. As long as no Abraxas people have any vested interest in F-250 LLC then I could care less who F-250 LLC represents...but without knowing who does have vested interest in the LLC....well, it leaves a questionable grey area. After Aubrey McClendon's deals at CHK and Tom Ward's at Sandridge....I just don't trust folks on their words....I prefer facts and deeds. It would be different it the announcement were APA, APC, or BHP acquires Wycross.....but that's not what we have. This is more like meeting some critter I've never seen before....I'm not sure if it's harmless or harmful. Bottom line...I think the deal is good....I just don't like the lack of information JMHO GLTA
File Number: 5440436 Incorporation Date / Formation Date: 11/27/2013
Entity Name: F-250, LLC
Entity Kind: LIMITED LIABILITY COMPANY (LLC) Entity Type: GENERAL
Residency: DOMESTIC State: DE
REGISTERED AGENT INFORMATION
Name: CAPITOL SERVICES, INC.
Address: 1675 S STATE ST STE B
City: DOVER County: KENT
State: DE Postal Code: 19901
Additional comment regarding the above information found through Delaware LLC's. It certainly appears the LLC was formed just for the Wycross purchase as it was formed just 4 days before the effective transaction date of Dec 1/13. Looks like someone either desires to be secretive or they want the deal to be a stand alone holding. I guess at worst it's kind of suspicious and at best it's peculiar. Generally most acquisitions are more open as to the parties involved. Curious if anyone has seen similar transactions ? I'd just feel a little more comfortable knowing who has vested interest in F-250...because after owning CHK, SD, and HK....I'm not all to trustful of anybody anymore. JMHO GLTA
see what tomorrow brings.... my entire energy watch list was red today with the exception of one stock. It a little bizarre as oil inventories were down far more than expected. I really don't think AXAS is being sold over the Wycross sale but more likely folks and funds taking profits for the year as AXAS had a good yearly gain. There are a lot of warnings out on production impact but my thinking is, what better time to get $73 million cash in hand if things get a little tough. There's numerous E&P's who don't have squat for cash on hand and very high debt ratios and they could get into serious operational problems. I'm not suggesting AXAS will or will not have production impact....but again...what better time to have $73 million come in to play. It's obviously a market guessing game as I have watched HK go from $3.80 to $4.20 and back to $3.80, WRES hit $3.46 then plummeted to $3.07...SD has yo-yo'd up and down. So it's more of a sector rotation as opposed to AXAS specific....in my view. I'm still looking to add to my position....just trying to figure out how deep this current negativity is running. JMHO GLTA
I warned of same ahead of the storm. as did CLR, APA, and PNR. The Bakken however does know what "frigid" weather means...but for the Eagleford and Permian, Miss Lime, Woodford...it's abnormally cold....but it's still gonna be a short term impact...darn shame ...I didn't heed my own cautionary advice.....LOL.....as the lyrics in the once popular song " The Streak " advised......." DON"T LOOK ETHEL " ! For now I'll just have to take the old reliable "ostrich" defense and stick my head in the sand....and use the time to kick my own rear end for breaking my own rules for adding position. JMHO..GLTA
Most E&P's hold positions in numerous "potential geological regions". AXAS had holdings in several regions...as they explore these holdings to discover what the IRR or ROR turns out to be they generally focus on the areas that yield the best ROR (rate of return) and these become the core...the money makers. Non-core areas are holdings that yield less return or have yet to be "proved" viable. For example Durvenay in Canada is still non-core. Non-operated assets are just that...it occurs when you have an interest in a region but your partner or partners are actually operating the field. Apparently at Wycross, AXAS was drilling the wells but with a change in partners the new partners were going to actively take-over drilling and operations. Usually whomever holds the greatest working interest is who gets to determine the when, where, and how. Abraxas may not have liked the new partner, or their plans in regard to Wycross, or just as they said...get a good price and use the $$$ to acquire higher percentage or 100% acreages and pay down debt. I'm hoping that Durvenay is sold rather than a farm-out because AXAS doesn't have the deep pockets it would cost to develop Durvenay...but that's up to them to decide.
I can't explain the downturn on what in my opinion should have bolstered share price except for simultaneous concerns of production impacts due to the winter storm. I still think the sale was a good deal, it is in line with the strategy presented to lower debt and sell-off non-core and non-operated assets. Since I broke with my customary discipline and added another 5k @ 3.54....I'm certainly as disappointed as anyone....but I've yet to see any company specific reason for the pull back. I guess we'll all just see if indeed it does prove to be " a clearly tremendous deal " for us or not....for now...I'm somewhat "miffed" at present. My greater disappointment falls more towards my breaking my own buying rules more so than the gyration on share price...that was purely my fault and I could have added the additional shares much lower. Shame on me....not the herd, or shorts, or whomever else....just me. I'm still confident AXAS made a good move and has the right strategy for pps growth, I just need to stick to my own rules to get the most out of what occurs going forward. JMHO GLTA
Pioneer Natural warned on production impact this morning due to winter storm..a few days ago CLR and APA warned of same....so even though oil/natgas prices are looking good it appears the market is timid towards the E&P's in the the shale plays. I really see the sale as a very positive and expected it would outweigh any weather worries.....I added 5k yesterday so it still proves to me that I still can't out guess the herd in the short term. All in all...the sale was good and AXAS should have a stellar 2014....but at present (today) it is wysiwyg...(what you see is what you get)....JMHO GLTA
attractive but CLR and APA warned on winter storm production impact and Pioneer Natural warned this morning. Looks like the prices are appealing but the warnings are quelling any near term interest. I still think the draw downs on natgas will benefit the sector in the long run even though production worries may hurt on the short term. We shall see. GLTA
per the press release....an update on cap-x and 2014 production guidance will be given post the Wycross transaction closing and Wycross is slated to close in Dec 2013 but no specific day is given. It'll be interesting to see just what does come out in updates going forward....we have results for Lillibridge West, Blue Eyes, and the much awaited Durvenay strategy. I guess I'm most interested in Durvenay as to what valuation that might represent going forward. I'm expecting Lillibridge West to mirror East results which would be fanastic. Blues Eyes was turned to sales.....how much is unknown...but it obviously wasn't a bad well....so it is comforting to know it's got a commercial flow. Abraxas is an under the radar E&P but they are gaining notice with bloggers on Seekingalpha, and Zack's mention them as a #1 rank every time the issue a news blurb on any E&P. So it all helps. AXAS is doing what it needs to do on the balance sheet....generally the first thing I look at on any new stock is the balance sheet. AXAS has the potential for greater valuation and so far they are performing to the strategy they have stated and if they stay on course they should return to prior valuations. JMHO GLTA
wear ones glasses when looking at calculator....wondered why I got a thumbs down..It was fully deserved.
Devon paid $6 billion for 82,000 acres from Geosouthern and it appears to be full interest. Abraxas sold 1200 acres for 73,000 million.
DVN =$6,000,000,000/82,000 acres=$73,170 per acre
AXAS=$73,000,000/1,200acres=$60,833.....and that's 25% working interest acreage. So in my thinking they sold that acreage @ an equivalent of $243,333 per acre cost for 100% interest.
I think it is very probable that some quake activity is related to E&P activity. However just as removal of salt water from one geologic formation and injection into another...consider what happens in the big picture. Consider for the past 100 years how much weight in oil has been removed from tectonic plates put into engines and converted to gases. Ever weigh a 20 gallon tank of gas ? Same goes for removal of coal which is burned and converted to gases. Same holds true for removal of forest..one tree weighs a lot. Just making a point that whether it's building concrete jungles...or fracking...or salt water injection....anything can alter the weight or pressure on tectonic plates and whether it's good or bad....who knows. There's been quakes, volcanoes for the entire history of the earth. So far I haven't seen any scientific data that ties fracing or saltwater injection wells to any quake activity. Oklahoma is however revamping their salt-water disposal regs to better monitor activity to see if there is a connection as reported a few weeks back in NewsOK. I can guarantee however that if the current energy revival is curtailed so goes the economy. I think that would send a few shock waves through the world in a manner just as devastating. JMHO. GLTA
just started adding position at 5.27.....it may still see more downside....but it's backed down far enough for me. Now it's just a wait and see....I still think the $40 million charge is gonna hurt but that should be baked in to the current price....natgas could bring the herd running and I'm thinking we're going to see a +200 bcf withdrawal this week and another substantial draw down next week. Regardless of what happens...this is the "old man winter" action we've needed for the natgas side for the E&P's Toss in production loss impact and it's early in the season, we've seen Cleon and Dion....and I say bring on the rest of the brood....empty those salt-domes substantially and watch what happens on natgas prices in 2014.....JMHO..GLTA
They need too pay bubba time and a half and keep him out there with heat tapes and propane torches to keep that gas flow going while the gettin's. I'll gladly donate a case of "pocket warmers" to him.
ditto....I love the move....and I would fully expect they already have the bolt-on acreages lined up. They just got $6,000 an acre for property they had 25% interest and less in or on a pro-rated basis $24,000 an acre @ 100% working interest. They certainly didn't give that acreage away....now let's see what they acquire in the way of bolt-on acreage. GLTA
superb news....but on no news I've got WRES up +5% on the day. I just buy stocks I like and wait for the herd and you never know when, where, or why the herd does what it does. Logic would have AXAS up 5%+ and it may be by days end....as is I'll go against my disciplined buying and add...if they'll retrace for me. Financially and strategically AXAS is firing on all cylinders and they are doing exactly as they have stated they would do. I think Geoffery deserves much credit for cleaning up the balance sheet and Watson gets credit for bring him on board. JMHO GLTA
but Flow rate wasn't given. I'm all for getting rid of the low working interest and non-operated deals. Note also the reference to "significant increase in cash flows". That's what happens when you hit good wells at 100% ownership or high working interest. Looking forward to the updates for 2014. GLTA
go against debt reduction....but they've been hitting on all cylinders ...so whatever the plans are for the cash...I'm all for it....whether it's for acquisition...funding cap-x...regardless the balance sheet just got a whole lot sweeter. I'm not trying to out guess them....but rather bless them ! JMHO GLTA
colder temperatures across a broader region this week should be an even larger draw down. Natgas prices in the Northwest were 20 cents higher at Opal in Wyoming and EIA says western natgas prices were up anywhere from 2 cents mmbtu to 62 cents mmbtu. So far it looks like at least another solid week of bitter cold so it's hard to imagine those increases won't strengthen even further. Add in to the mix the the harshest weather hit the major shale plays which equates to production shut-ins per closed roads.....we could see some spike in both oil and natgas for a few weeks. WRES oil production should be safe in warmer California....there could be some measure of risk on the CBM wells but that's just pure assumption...but all in all I think WRES will benefit as they were planning on shutting the rig down for annual servicing anyway. JMHO GLTA
In reality, board post have very little if any impact on a stock....far less than most people think. In general there's usually a fair amount of posters who preach for the "moonshot" and there's a fair amount who preach for bankruptcy. It's just a reflection of society....where there are always extremes and when you add in the anonymous factor the extremes really speak out. But all in all boards can be a useful source to find useful information and dabble in a little shared enthusiasm on stocks you own. I usually use the ignore feature quite liberally on the fanatics....I may have to hear "boom boxers" or barking dogs in the night.....but on the boards the "ignore" feature is mightier than the keyboard.....ARM THYSELF ! JMHO..GLTA
rather small short position on AXAS and it's smaller each period.....clean balance sheets have a tendency to ward off shorts. AXAS is no guarantee by all means but their balance sheet is pretty clean versus most sub $5 E&P's and they do have the drill bit working in the right direction. If they do bring a deal to fruition on Durvenay acreage and if they hit some good IP's on the 100% working interest wells it could certainly make a substantial run up. It's not a big name stock but it has finally got on the radar....the potential is there....now it just matters whether the God's of Good Fortune come to roost. JMHO..GLTA