We do need a couple of good wells. Don't forget these Texas acres were purchased as an Eagleford play. The story now is buda, buda, buda - but drilling one highly economic eagleford well would be huge, because it would add another resource (actually restore the resource they thought they were going after in the first place, with the buda then becoming gravy on the main course rather than a fortunate replacement for a failed eagleford development plan.
You have been following USEG for a long time. You have to admit that in the past a lack of updates has NEVER been good news. Maybe this time.
You miss my point. An operations update at the last scheduled conference would have been very timely. I didn't want them to cancel that. I don't want them to cancel this one either but it won't be as crucial or impact-ful or timely (assuming we do get a real update with the quarter report) - therefore they will probably show up.
Still a month to cancel. However it is after the quarter report so I would hope we have a fairly complete operations update by then, in which case there will be no particular need to have a conference.
Especially with ECA quarter report saying their 6 TMS wells generally met expectaions and they will continue to run 2 rigs and make decision about economic nature of play before end of year. ECA released no new well results. They surely didn't beat the TMS drum. So HK really has to release some good results on a few new wells to decrease the little residual uncertainty about TMS overall, though goodrich is clearly full steam ahead right now.
Wrong. ECA kept 300 k concentrated acres in what they believe is the core and most economic part of the TMS play. The acres HK bought are also promising. ECA just had more acres than they could hold and develop but they clearly did not (at least intentionally) sell their best acres to HK while putting together a JV to jump start development of their worst acres. Think about it.
Like you don't follow the company? They froze the dividend to pay down the debt to get the coverage ratio where they want it. They still have every intention to increase payout 6-10 percent a year going forward.
ECA included no TMS results and was very vague about recent TMS wells. They said they generally met expectations, raising concern that at least one of the wells didn't. Language quite guarded - they will continue 2 rigs and make decision about economics by end of this year.
Not much to say on TMS - .
No well results. Generally meeting expectations is not strong wording. I was really hoping for specific production numbers from a couple of the new TMS wells.
Only thing I am worried about in the numbers in terms of comparison with Q1 is that they had extra $300 million of cash flow in Q 1 from selling Deep panuke gas into maritime pieline at over $15. That will not be there is Q 2. The comparison with Q2 of last year should be very strong.
New sale is intersting. 2000 bopd. They were not drilling up there because they have better return in FB area. They did hang on to 12,000 Montrail county acres. Anyway, seems like good enough deal - they want to put drilling capex where it will do best. I am hoping hey hit 1 or 2 more great paadox basin wells. If drilling sucess there becomes mor epredictable, that area willbe a homeru.
I am not sure the market will be blown away by 2Q numbers, as some posters have suggested. Don't forget the huge Deep Panuke bonus in Q1 (300 million in cash flow) from selling 250 million cubic feet per day over $15. There will be huge drop from Deep Panuke for Q2. (Should be nice again next winter however).
What I do hope to see are good results on a series of TMS wells from ECA and from HK which could clearly establish that area as the next high return shale play and that will lead shift to flat out development as occurred at Eagleford.
Have no complaint that fidelity is doing better in Bakken after production was pretty stagnant under 5k bopd for years. But add what they would have from oasis partnership (had it continued) and current productionwould be a lot higher.
You are totally missing the point - MDU was partner with oasis but sold their interest cheaply early on. Now Oasis worth more than MDU. Their share of Oasis production (had they kept their interest) would be more than their current operated Bakken production. Yes they have many pieces, but Oil and gas E and P is one piece that would be bigger now if they had continued with Oasis.
Just saw that Fidelity is at 10,400 bopd in Bakken. Remarkably Oasis now at 45,000 bopd.
The prediction is for a big price differential for New England for next few years, just based on poor pipeline access from Marcellus and elsewhere that can't meet current demand. So they do stand to have boost in cash flow q4 and especially q1 every year for a few more years. But that can be built into the price. They have put a billion into it, they made 1/3 of that back in q1. If they sell it for 2B that would be okay. I would not sell it for a billion though.