USEG Is not at $40 a share yet so i think they still need to be spreading the story of this company. Maybe there will be nothing in it that personally enlightens you but that is hardly reason to canel another conference.
from july 24 2014
Light Louisiana Sweet for August delivery weakened by $2.86 a barrel to a premium of $1.66 versus European Dated Brent at 2:08 p.m., according to data compiled by Bloomberg. August delivery will stop trading tomorrow. The premium versus U.S. benchmark West Texas Intermediate sank $2.45 to $1.30 a barrel. September LLS was valued at about $3.35 over WTI, according to broker PVM.
The 3-2-1 crack spread on the Gulf Coast, a rough estimate of the profit from turning LLS into gasoline and diesel, fell to $1.17 a barrel yesterday, the lowest since December 2012. It rebounded to $4.74 today.
“We expect further weakness in LLS,” Amrita Sen, the chief oil market analyst for Energy Aspects Ltd. in London, said by phone. “The only way to balance the U.S. system is for crude prices to fall until you incentivize refinery runs again.”
The drop followed a rapid run-up in Gulf Coast prices as refineries two weeks ago processed the most crude since at least 1992. LLS jumped from a $1.49-a-barrel discount to Brent on July 15 to a $4.52 premium yesterday, the highest level since July 22, 2013.
The jump in prices is drawing more crude cargoes to the Gulf Coast, including at least four tankers from West Africa since July 16, according to lists of charters compiled by Bloomberg. Prior to that there hadn’t been a booking reported since July 3.
The latest home run Buda well is the Jessica well drilled by CML Exploration, LLC. This well was spud on March 2, and according to the Texas Railroad Commission produced 29,071 barrels of oil by May 31. The Jessica well is drilled parallel to the western side of the Beeler 7H well and is located halfway between the Beeler 16H well and the Beeler 4H well on the northern side of the Booth-Tortuga lease.
From seeking alpha article, Chesapeake Joining Buda Oil Rush In South Texas
yes, i saw now the jessica well by a private firm was reported today in SA right next to USEG acreage. I still think we went to sale to reg price. I expect this to be knocking on $5 any day now.
I think the BS sell off of the oil sector is over. Energy was the best performer of any S&P sector last Q and lots of people locked in profits and now people have been buying what was a bargan for no reason.
so if insiders are buying net than that points to good things to come. One of the reasons i bought a huge amount of this company was not only was it so cheap and looked like there were some drilling that could move the price but because the incentive structure of the company is conducive to a higher share price. Mngmt does not get lots of options unless production and the share price goes up. This more than overcomes and family company issues to me.
The article he is perverting holds up the arrangement as an example of how it should be done. its at motly fool, Magnum Hunter Resources' Investors Shouldn't Be Too Worried About the Company's Airplane Usage. its in responce to a bloomberg article, Magnum Hunter Turns $891 Million in Debt Into 127% Gains
Shaner is still on the payroll as a director and has not sold a share. The plant opened 4 days late. It hasnt been at $22 since Nov but give it a six weeks and it will get there.
Sentiment: Strong Buy
also just out in 8 K, ARP Third Amendment
• increases the Borrowing Base to $825,000,000;
• if Borrowing Base Utilization is less than 25%, the Partnership incurs the applicable margin on Eurodollar loans of 1.50%, the applicable
margin on alternative base rate loans of 0.50% and commitment fee rate of 0.375%; and
• revises the maximum ratio of Total Funded Debt to EBITDA to be (i) 4.50 to 1.0 as of the last day of the quarters ending on June 30,
2014, September 30, 2014 and December 31, 2014, (ii) 4.25 to 1.0 as of the last day of the quarter ending on March 31, 2015 and
(iii) 4.00 to 1.0 as of the last day of each quarter thereafter.
Atlas Energy (ATLS +2.1%) is initiated with an Outperform rating and $55 price target at RBC, which believes ATLS can maintain a top-tier distribution growth over the next few years even if underlying MLP distribution growth is below expectations due to IDRs in the deep splits and significant future equity needs at both.
Also, RBC starts the Atlas Pipeline (APL -0.1%) MLP at Sector Perform with a $36 target, seeing low-to-mid single-digit distribution growth through the next several years due to expected strong volume growth on its systems but offset by equity capital needs and a future preferred equity conversion, factors which likely will keep a lid on distribution growth through the forecast period.
I dont think this is a good sign. The deal must be delayed at least. Not a disaster by any means but not the catalist to get this very cheap price up yet.
Moly supply & demand seems to be in place so i dont see anything that will cause a 3x in price that USEG said it will take to start up production. They say that as they hope to monetize it and i am fine with that as long as the money is green.