research is copyrighted can go to search engine and search for
US Capital advisors USCA equity research Appalachia Infrastructure & Marcellus Basin Study Summary – April 29, 2014,
go to investorvillage board for educational purposes
mike look at history of mlps that have cut or eliminated distribution, even if restored, the market hates it and the unit price pays an extended higher yield penalty before it recovers, example is bbep, it did not take months it took couple of years.
Investor intel July 16, 2014 Christopher Ecclestone
If we recall rightly this was the first Lithium company we ever met, right at the start of the Lithium boom and it seems like an eternity ago. The company project then and now is the Kings Valley Lithium Project is located in Humboldt County in northern Nevada. The area is sparsely populated ranching land and covers approximately 40,000 acres. Humboldt County though is famous for its various mines both past and present....
However like so many in the lithium space it had to contend with the “hunger phase” of the last two years. In response to this the company thought laterally and decided that its properties resource of hectorite clay could be a short term solution to its production hiatus on lithium. Therefore it invented itself a brand name, Hectatone (not quite De Beers, but it works). It then set about exploiting the simplified refining processing requirements and properties of the WLC hectorite clay for the development of additives to drilling fluids. This organoclay is an essential drilling fluid additive for new directional drilling completion techniques that target previously inaccessible reserves of natural gas and oil.
With high active clay content, the hectorite clay-based organoclay is dry processed, and the company expects to have a cost advantage over wet processed products. It’s positioning itself as a cost competitive new entrant to the drilling industry targeting the growing high pressure high temperature market.
Oilfield Minerals Outlook 2014 Houston
Tuesday 24th June 2014
2:00 New hectorite clay products for challenging oil field drilling applications
• Organoclay usage is poised for global growth
• Design focus on HPHT, Gelfast and Rheoflat characteristics to improve drilling performance
• Details about the new Hectatone organoclay plant, North America's newest entrant in decades
Jay Chmelauskas, President, Western Lithium USA Corp, USA
not a recommendation
TER: The other thing that investors seem to be excited about is the prospect of a gigafactory for battery development. What is the best way to get exposure to the battery market? Graphite? Lithium?
JH: I have long been excited about the potential growth in the battery market ....
Demand in the Li-ion battery market is set to grow rapidly over the next seven years. This could be a game-changer for some North American lithium and graphite miners. Battery manufacturing could be a major area of economic growth for the U.S., especially the southwestern U.S., over the coming decades.... Most of current lithium supply either comes from Chile, Argentina or Australia. A North American lithium asset could be very profitable.
TER: What are some possible companies that fit that description?
JH: One that we've followed for years is Western Lithium USA Corp.... The company's location in Nevada, with one of the most advanced lithium deposits, is very compelling for battery makers. In addition, Western Lithium is going to be in production shortly, producing hectorite clays used in the fracking industry for deep directional drilling. It is fully permitted for its Hectatone organoclay business, and has raised over $9M. The Hectatone business is looking good for startup in the fall; plans should be complete in the summer.The lithium demonstration plant is scheduled for launch in Germany at the end of 2014. Western Lithium has two tracks—the Hectatone business for the oil and gas industry, and lithium for Tesla. Both tracks are moving forward, and in exciting areas.
TER: It looks like the market has recognized that. The stock price had a nice little spike earlier this year.
JH: I think it's just the beginning.
Jeb Handwerger (JH) is an author, speaker and founder of Gold Stock Trades. He studied engineering and mathematics at University of Buffalo and earned a Master's degree at Nova Southeastern University.....
Bentonite has been, and is expected to continue to be, an important mineral for the oilfield industry. This mineral, also known as fuller’s earth, is used in both conventional and unconventional drilling, including hydraulic fracturing (fracking).
Bentonite can be used to cool and lubricate the drill bit, remove cuttings from the bottom of the well, seal the borehole and stabilise the well bore without damaging the formation.
Also speaking at the conference in Houston, Sue Shaw, a senior analyst at Roskill Information Services, outlined just how important shale gas market growth will be for bentonite, outlining that the drilling muds market is currently the fourth largest consumer of this mineral.
“Demand from drilling muds increased 4% per annum over the last decade and is one of the largest growing end uses for bentonite,” Shaw explained to delegates.
Historically, drilling consistently accounted for just over 20% of US bentonite consumption, Shaw added, “until recent increases of up to almost 30%”.
Using 2012 figures, Shaw outlined that global demand for bentonite stands at around 23m tonnes.
However, while the demand for bentonite in the oilfield is increasing year-on-year, alternatives are creeping on to the market, with hectorite remaining a prime example of a natural product that may be used in harsher oilfield conditions (higher depth and temperature, for example).
Jay Chmelauskas, president of Western Lithium USA Corp. and Hectatone Inc., spoke in more depth about this alternative mineral at Oilfield Minerals Outlook 2014, highlighting its suitability for more complex oil and gas drilling environments associated with horizontal and deep drilling methods, such as fracking.
The company is developing a Hectatone line of organoclays which will be processed at a plant in Nevada, US, that will also be able to dry other clays, including bentonite . This is expected to be commissioned in autumn this year.
is it raw materials company inc? or another name?
What's behind call sale in Markwest
By Chris McKhann 4 hours ago
A large trade sees limited upside for Markwest Energy Partners.
optionMONSTER systems detected the sale of 9,438 November 80 calls for the bid price of $1.60. Open interest in the strike was 2,993, before the trade appeared, showing that this is a new position.
Minutes later, 14,136 September 77.50 calls were bought for $1.13 in volume below open interest of 19,827 at that strike, so the trader is buying back those short calls--which expire at the end of today's session--and is rolling the position to a strike that is $2.50 higher in November.
These contracts could have been tied to a long-stock position in a covered-call strategy . In this case, the investor wants to keep collecting the premium from selling the options while holding onto that stock. (See our Education section)
bob now if you are trying to say there are intrinsic measures used on a transaction that may be true to a small extent but not to a large extent. The deals are driven by the numbers and the companies strategic goals which are based on numbers. If a company chooses to exist an are it is always about the value to them like in the Linn Exon deal. How do I know I actually led and executed deals for one of the three majors.
Also rather than argue with you on the validity of the SEC data; which is not rotten apples but is a snap shot in time and is derived directly from all of the reserves numbers of an E&P company. I can point you to the article mentioned. The published article is copyrighted but you can get a flavor for it and if you are truly interested in being informed I you can get you a copy of the article or any one else that would like it for educational purposes only. The article was published in the Oil and Gas Investor and is titled "A New Yardstick for Measuring Value Creation".
You will also see a lot references to the article in the far east doctoral theses and in Canada and the US
salty great news, thanks for sharing
bob you are wrong my friend, if I can call you friend. the SEC 10 SM is very useful. You can take it and approximate a value of a deal by extrapolating the companies actual cost of capital and applying it proportionally based on r/p ratios to the SEC 10 SM to isolate the investment metrics . It will not be exact but it will be very close.
Also the SEC 10 SM can be used to cross compare E&P investment options (companies) and you can calculate the value created and a proxy/surrogate IRR for each company from SEC 10 and other 10 K data to assist in making investment decisions. There is a published article on this applciation and reference in numerous thesis.
bud thinking it through, if you were the buyer why would you contract/take off for a product that can not yet be produced and if you did contract you would propose a one side deal favorable to you? I think you can guess this is what is going on as they earlier indicated they would have a contract by now and they apparently don't. It is all part of the contract negotiations. By making a clear statement with clear evidence it supports your contract negotiations and yes they may even have sell into the open market so to speak before they get a firm contract, but the plant being in production better levels the negotiation field.
Launched ATM program offering common units for aggregate proceeds of up to $200 million in March 2014
Amended credit facility in April 2014, eliminating the maximum total leverage ratio and maximum senior secured leverage ratio requirements and adding a provision to maintain an interest coverage ratio of no less than 2.5x
Received commitment in July to increase borrowing base of credit facility from $1.6 billion to $2.5 billion in connection with QR Energy acquisition
•Large inventory of low risk development opportunities balanced with high return upside potential (e.g., Permian Basin)
•Enhanced ability to high-grade capital projects
•Stronger financial position and wherewithal to effect acquisitions and growth projects
•Immediately accretive to NAV and DCF per unit
Total Proved Reserves (Mmboe) 323.4
Proved Reserve Life 15.5
Average Daily Production (Mboe/d) 51.9
Reserves 66% liquids
Current 3.28 bcf/d
2014 4.08 bcf/d
2015+ 6.08 b cf/d
65% of Current & 66% Announced Processing Capacity (source bentek)
266 MBls/d growing to 446 MBls/d
slides 8 and 15
Hectatone Update-Nov 2014 in service projected
RENO, NEVADA -- (Marketwired) -- 09/08/14 -- Western Lithium USA Corporation ("Western Lithium", the "Company") (TSX: WLC)(OTCQX: WLCDF
The Company is also commissioning its Hectatone" organoclay plant, located in Fernley, Nevada that is expected to begin imminent production of specialty drilling fluid additives. Mechanical commissioning of the plant is underway and first production is expected by November 2014, based on current startup progress.
2nd qtr cc
During the quarter ended March 31, 2014 Western Lithium made a production decision for its planned organoclay business. The Company has received an environmental approval to extract hectorite clay from its Kings Valley Clay Project. The Company may consider the purchase of other clays including bentonite to make other competitive products. Currently, the Company is completing the construction of a nominal 10,000 ton per year organoclay facility at an industrial site in the City of Fernley. Mechanical commissioning has commenced, with planned production and sales starting in the fall of 2014. Western Lithium has determined that hectorite clay is an important mineral for the oil and gas sector to provide thermally stable gelling and lubricating mud when drilling in high pressure and high temperature (“HPHT“) environments. Globally, the successful implementation of directional drilling technology has commercialized new ultra deep oil reserves and certain shale gas resources in HPHT environments that are emerging as major new energy sources for nations such as the USA. Western Lithium believes that its hectorite clay business will become a niche and critical business to support major new oil and gas discoveries made using HPHT drilling technology.
second try to post
Regional news media gets it
"...Greg Mosier said the major factors for picking Reno come down to business fundamentals.
Mosier is dean of the University of Nevada, Reno's College of Business.
"While incentives are certainly required to be on the short list, factors like proximity to the Tesla northern California assembly facility, proximity to lithium deposits in Nevada, transportation infrastructure and ability to fill work force needs are the most important."
Tim Crowley, outgoing president of the Nevada Mining Association, thinks the proximity to Western Lithium's minute north of Winnemucca had to be a big part of the decision.
"They (Tesla Motors) have to have the mineral," he said. "They can either get it in Nevada or South America. We're ecstatic they're going to get it in Nevada. It showcases the essential need for minerals mined in the state."
Ray Bacon, head of the Nevada Manufacturers Association, pointed to many reasons that haven't received much discussion.
He said that if Tesla had chosen Texas or New Mexico, batteries shipped by rail to its Bay Area car factory would have to change rail lines when turning north.
The Tahoe Reno Industrial Center, where Tesla will locate, also has a looping utility system.
"The looping of all utilities may not seem like a big deal, but automated machinery can be down for hours with a utility failure," Bacon said. "Looping the service stops that issue, and TRIC is one of the few place in the world to have taken that approach. It is a big deal for a 24-7 plant operation and I expect they (Tesla) will become one of those...."
Mark Robison, RGJ 6 a.m. PDT September 5, 2014
Why Nevada for Tesla? Location, low taxes, lithium
Plant can also process simple bentonite used in most drilling
"Phase 1 construction of Western Lithium’s Hectatone™ processing plant... plant will be able to process
other clays such as bentonite for organoclay manufacturing"