True enough, and both are gone from their respective companies. They could fine ECA a million, but they could put randy and Aubrey in jail. Wonder if that is part of why Randy left. Of course the ECA Board found no evidence of wrongdoing - they couldn't lie about that.
Nothing new there - they have already said (quarter report and conference call) they don't plan any more drilling in Utica right now and are waiting on the results of the wells in progress. Still it would be another huge write off if they exit, especially if they can't monetize the assett for most of what they have invested there. We all better hope and pray they have cracked the nut at TMS and do not have any missteps there. Buda and Eagleford are doing well, beyond expectations. Who knows what else they have with potential to be a resource play. Three is enough to focus on right now.
Con tango should give some production numbers on the two newest buda wells. That is likely the most important update we need from USEG when they report, other than Feb exit production that they won't give, because they never do.
And the storage report comes today as this air mass is heading east. This weeks withdrawal number and next weeks withdrawal number may be startling, even if everyone knows they will be large. Withdrawal has been historic. Everyone thinks replenishment will be easy. Maybe so, but it may require a higher gas price - something like supply and demand.
Lots of info on TMS. HK jumping in with 300k acres and 2 rig program this year with plans to push to full scale development mode soon. They are convinced enought o go all in in this play. ECA going a little slower but ECA may well commit to more aggressive development program soon.
1. What about the Utica?
2. Do they still have the woodbine - what exactly did they sell?
3. Do they have another exploratory area somewhere that they are evaluating, or are they settling in exclusively on these three and trying to grow as fast as they can. if so hopefully they can unload the other assets they have fairly quickly, so as not to distract them.
1. EUR estimate for type curve at Ft. Berthold increased to 800k and most recent wells with slickwater fracs look like 970k EUR. Wow.
2. Land position in TMS area is quite impressive. 235K in one area that really is in sweet spot. And another 65 K further west in Louisiana - I don't know as much about that area. They have to execute in the TMS of course. They are leapfrogging even ECA in the aggressiveness of their devlopment plan.
Forecasts of a thaw for the Eastern U.S. next month sent natural gas futures to the steepest two-day decline in more than six years on speculation of reduced demand for the heating fuel.
It is supposed to be bitter cold through mid March. What Bloomberg is saying is that there is a forecast that there will actually be an end to winter this year and that the coming of a spring season is now believed to be inevitable.
With an eagerly awaited report, there are always a few jitters and a little tension between those who think the report might disappoint (and want to get out of the way) and those who think the report will be surprisingly strong (and want to get on board). Lately even very strong reprots ar ebeing met with soem selling pressure after release. So do not get totally discouraged if we slide back a bit on GOOD news. That would be a buying opportunity. (okay, I know, yet ANOTHER buying opportunity).
Not quite like they haven't been doing anything. They have been taking some swings, but so far mostly misses. Some near misses. They got some value from uranium as the exited, and may get some more soon from residual interest. Biggest disappointment in Moly mine was when TC walked. Their Bakken play not great, forced to drop participation right when things were looking up (better results, more benches). Apartments lost half the investment. Eagle ford didn't work. Attempt to operate a prospect didn't work. But buda sure seems to be working. No wonder Keith says Buda, Buda, Buda.
Likely will some positive items. Could be bakken and eagle ford progress and stronger than expected growth. Could be TMS news. Could be asset sale at good price.
They have nat gas in Louisiana (Haynesville) and Texas and Wyoming and Colorado. They are not putting capital in to grow those areas, but they are still producing. Plus they have 300 MMCF/day from Deep panuke selling into high prices at algonquin city gate (Boston).