Every single year NG prices pull back before winter and then go back up a few months later. .As do most NG stocks.
Happens every single year. This year won't be different. Weather will set the NG price range, but it will be definitely above 4.5 at some point. EPSEF/EPS will follow to the way up as it's still the cheapest small NG producer.
IMO, it's a relatively safe bet.
Read the SA article about EPSEF and I suggest to copy paste it, because soon it will be not available to non SA subscribers.
The article is a Top Idea and explains thoroughly why EPSEF is the cheapest small nat gas weighted producer.
EPS in Canada is down too with very low volume, Nat Gas is down also reaching prices even below 3.80.
A great buy opportunity is near with such low prices in NG. These prices will not last for too long, as laways happens due to the seasonality every year.
London-based upstream Nighthawk Energy will ramp up its development of shale plays at its Colorado assets.
In a production update report issued on August 21, the company said it “clearly identified” an unspecified amount of additional reserves across its Arikaree Creek structure and is now implementing plans to develop and produce the reserves.
Arikaree Creek is located at Nighthawk’s Smoky Hill site in Lincoln County, Colorado.
Nighthawk will initially drill a short horizontal well, the Big Sky 6-11 well, with a horizontal leg of up to 1,200 feet. The well will be hydraulically fractured and tested.
The company expects drilling to start in the fourth quarter of 2014.
Nighthawk asked the independent consultants preparing its new reserve report to evaluate potential reserves in the Upper Mississippian zone of Arikaree Creek.
The company will also be expanding its drilling operation at the southern lobe of Arikaree Creek within the next few weeks.
The Arikakee reserve was discovered in 2012 and has produced 700,000 barrels of oil. The site has nine wells in production and a tenth well, the Blackcomb 12-14, set to begin production this month.
Nighthawk also said that exploration wells at its Snow King asset showed “substantial additional production” potential. The company did not provide an estimate of potential reserves or production.
Nighthawk will undertake a 3D seismic survey to identify pay zones and expects a multi-well development program to start in the fourth quarter of 2014.
The fall in oil prices and the August/vacation period are two of the reasons the stock price didn't move. There is no clue of insider selling so far.
See the company's results from the West Copperline prospect. The IP-30, not the IP-24h, is extremely high and costs only $6 million per well.
These economics are not met in Bakken or Eagle Ford or anywhere else in the US. Again this is IP-30, not IP-24h. This is from the company's report:
West Copperline Property, Lea County, New Mexico: On July 21, 2014, the Company announced results for its West Copperline 29 Fed #4H horizontal Bone Spring development well. Under controlled flowback the well produced at a peak 24 hour gross rate of 1,598 Boe, which consisted of 1,220 bbls of oil and 2.27 MMcf of natural gas on July 16, 2014. The initial 28 day average for this well was 1,173 Boe/d gross, which consisted of 922 bbls of oil and 1.5 MMcf of natural gas per day.
Caza now has four producing wells on this property. The West Copperline 29 Fed #1H and #2H wells are producing from the 2nd Bone Spring Sand, and the West Copperline 29 Fed #3H and #4H wells are producing from the 3rd Bone Spring Sand. The West Copperline battery has averaged 1,532 Boe/d gross from all four wells, which consists of 1,238 bbls of oil and 1.8 MMcf of natural gas per day during the month of August 2014. Caza currently has a 62.5% working interest (approximate 47.25% net revenue interest) in the West Copperline wells.
It's Epsilon Energy, EPS in TSX and EPSEF in OTC.
His article is rated as "PRO TOP IDEA", like LNREF.
I just read his latest comments in his LNREF articles, he said he will release a new long pick next week, probably Monday to Wednesday I guess. If it is a "top idea" pick, it will be 100% a new success with 50% minimum gain in the short term....so watch out.
I like USEG, but your move was 100% right at this moment. I hold LNREF from Value Diggers first article in Seeking Alpha about it. It was around 34 cents then. 45 days have passed from his "top idea" article. I think we are near to a new long "top idea" from him...
Hold some USEG is a good idea though. Diversification never hearts.
There is a message board in "ADUEF". There is two articles for Lonestar in SA from the same author, "Value Digger". He has a great track record in energy stocks, by his first article the stock is 75% higher...
He firstly wrote about LNREF when it was traded around 34 cents, 40 days ago.
Not his first very successful pick though...
SA contributor 'Value Digger" suggested LNREF at 34 cents, 40 days ago. He was the first who wrote about it in SA.
I think he's near to release his next pick. ..
both useless, imho.