No. Just places a valuation on the other half. And also the association of blacksone with a LNG exporter may prove helpful. Haynesville is clsoe by the export facilities an a logical supplier anyway with low cost gas.
They will be talking about the buda wells all day. Several chances to ask questions. I wold like to know 1) what happned with the new MCF eagleford well, and 2) who is the secret partner and are the fracked well sthey are drilling eagleford well or Buda wells?
Agree totally that they have room to run in Buda for 1-3 more years and by then they really should have figured out how to drill economic eagleford wells on their acres. I don't worry about the leases . Some acres are held by Austin chalk wells, the rest will be held by buda wells.
Should surely get some details on the new Buda wells.
Production and revenues pretty flat. No update on any of the new buda wells. Maybe there will be an operations update with the prss release but nothing much in the 10Q. Mt Emmons costing 650k a quarter and G and A continues upwards.
7 of 10 most recent TMS wells meeting type curve (7/7 for ECA - that means 0/3 for others).
For ECA type curve is now shown as EUR of 650-750.
Hopefully next two HK wells being completed will meet target.
Go figure. MS had higher price target based on forecasts for revenues and earnings. Then they issued comments about HK beating their estimates. THEN they drastically cut price target. Obviously their original target was not supported by their own targets.
Tourism is up as there are now 4 marihuana shops on main street. Now they have skiers, hikers, mountain bikers, and some others looking for Rocky Mountain high. Maybe the uptick in local economy will give them more $$ to try to buy the Moly Mine.
Oil prices and TMS troubles both have something to do with it. But they are hedged for 80 per cent of production (about $90) for rest of this year so short term drop won't hurt terribly. Plus they have about 50 per cent (a little less) hedged at similar price for 2015.
Williston basin: Outstanding quarter - doing outrageously well.
El Halcon: Great quarter - potential second to none.
Floyd congratulates both teams and calls out team leaders by name.
TMS - earlier play but happy to be there. last 10 wells (by all operators) pretty consistently good.
Will spend the same and grow the same next year. Will hit growth targets from the mature plays. Anything from the TMS is incremental.
Not going to spend much on acres next year. Williston basin and El Halcon area fully leased - might do small add-ons or trades. They bought the center of he El Halcon area - wish they had made the target a little bigger because others are drilling great wells around the edges - but too late now and their entire 100,000+ acres is fully derisked. With TMS they have so many areas that to add more would be gluttony (I chuckled at that).
Call was pretty awesome. Don't sweat the market ups and downs. If HK continues to perform like this they will do fine. Next 10 or so wells by HK, ECA, and Goodrich may tell a lot about progress in TMS.
Their two mature areas are performing outrageously well.
savings accounts of their customers (nice zero interest pot of cash to lend out).
The one well I thought would be ready has had technical troubles. There are two more wells drilled but waiting on completion.
However bakken and eagleford doing great and growing fast with 327 million in revenue. That shoudl stabilize to shares and then any TMS positive news woudl push the trend back positive. That good coem as early as next week from Godrich or it may have to wait for next TMS opertaions update from HK. ECA doesn't seem in a hurry to give any new numbers.
We do need results from 10 more TMS wells that are pretty good and fairly cosnidtent. I thought that we would have that a little more quickly.
I fear they will only have results on 1 well and that is the one with the 5400 foot lateral. And they were having some trouble clearing out the plugs
Short term TMS was best chance for a quick bump. But ECA didn't release Ny new results last week, HK might not have any new numbers tomorrow, and Goodrich comes next week and they might have one well to report. We need about 10 more TMS wells with consistent results and decreasing costs to erase any doubt that this is a highly economic resource play.
They sould have results on the Blackstone but that has only a 5400 foot lateral. When they last did operations update on Jne 9 they had just spud the Fassman (expected lateral 6300) and the SR Smith (expected lateral 7660). Those two wells should be finished, but it may be too early for results. So average results from the Blackstone may be all the soldid TMS news we get. That won't likely be enough to convince anyone that TMS is another eagleford. I was hopign ECA would give alittle more detail on the wells they have finished. They did say all 6 were on type curve but they mentioned EOR 650 which is lighter han the 800 that has been talked about. Still prestty economic at $90 oil if the results are consistent.
HK should have some good numbers in Bakken and El Halcon confirming the rapid growth in those two plays.