I think it can do a little better. Looking for 8.50 - 9.00 area in the next 4-6 weeks. This is contingent that the overall market stays strong.
Well, hopefully BLMC management can give some clarity to this in their next report. At least as it pertains to BLMC.
"A royalty interest, in addition to the basic royalty, created out of the working interest; it is, therefore, limited in its duration to the life of the lease under which it is created. An overriding royalty is the right to receive revenues, in addition to the basic royalty, from the production of oil and gas from a well without paying the drilling or monthly operating expenses from the well. Overriding royalty interests are not connected to an ownership of minerals under the ground. Rather, it stems from ownership of a portion of generated revenues from oil and gas. Owners of overriding royalty own only proceeds from the production of minerals and not the minerals under the ground. An overriding royalty interest expires once the lease has expired and production has stopped, whereas, minerals and royalties owners maintain their ownership after production stops."
baby, Why would they only get 1.5% of the FCX total and not of the total revenue generated from the well? Remember FCX share is 70%.
"1.5% of 8/8ths overriding royalty interest (ORRI)". But what does this mean in layman's terms?
I'd be interested in understanding better what BLMC's Royalty with regards to Highlander.
"Freeport-McMoRan (NYSE:FCX) has given more details about its Highlander discovery in Louisiana. Production is now expected to begin in 2015 as the test production indicated a daily production of approximately 43 million cubic feet of gas per day (of which 21M cubic feet will be attributable to Freeport). This should result in a revenue of roughly $200,000 per day (or $70M per year) based on the current average natural gas price in Louisiana.
This well has reached a depth of almost 30,000 feet and contains approximately 150 feet of net pay. Freeport retains a 49% net revenue interest and is the operator of this well and will very likely be running point in exploring the other prospects on its 60,000 acres land package. Keep in mind the Gulf Coast Ultra-Deep Royalty Trust (GULTU) holds a 3.6% gross overriding royalty on the entire production of Highlander as this was included in the list of tenements where GULTU (which was created when Freeport acquired McMoRan Exploration last year) would be entitled to share in the revenue."
Market Maker probably cleared some Stop Orders down at 2.25. Must be stuffing his kids stockings with GV shares tonight. No biggie, it will be a lot higher in 2015.....
Freeport-McMoRan Inc. (FCX) announced today a successful production test from Freeport-McMoRan Oil & Gas’s (FM O&G) Highlander discovery, located onshore in South Louisiana in the Inboard Lower Tertiary/Cretaceous trend. The production test, which was performed in the Cretaceous/Tuscaloosa section, indicated a flow rate of approximately 43.5 million cubic feet of natural gas per day (MMcf/d), approximately 21 MMcf/d net to FM O&G, on a 22/64th choke with flowing tubing pressure of 11,880 pounds per square inch. FM O&G and its partners expect to begin production in 2015 using facilities in the immediate area.
As previously reported, the Highlander discovery well was drilled to a total depth of approximately 29,400 feet in first-quarter 2014. Wireline log and core data obtained from the Wilcox and Cretaceous sand packages indicated favorable reservoir characteristics with approximately 150 feet of net pay. FM O&G has identified multiple prospects in the Highlander area where it controls rights to more than 60,000 gross acres.
James R. Moffett, Chairman of the Board; Richard C. Adkerson, Vice Chairman, and FCX President and Chief Executive Officer; and James C. Flores, Vice Chairman, and FM O&G President and Chief Executive Officer, said, “We are pleased with the results of the Highlander production test which confirm the favorable reservoir characteristics of this discovery. We congratulate our team on this accomplishment and we look forward to bringing this well on production in 2015.”
FM O&G is operator of the Highlander well and holds a 72.0 percent working interest and an approximate 49 percent net revenue interest. Other working interest owners include Energy XXI LTD (EXXI) (18.0%) and W. A. “Tex” Moncrief Jr. (10.0%). The Gulf Coast Ultra-Deep Royalty Trust (GULTU) holds a 3.6 percent overriding royalty interest in the Highlander area
In a way I was hoping they were doing an offering, since this would have them use an investment banker and thus they could have started to get some Analyst coverage.
Also, if they were to try and sell the Treasury Stock, I think this would have put pressure on the share price temporarily with the increase in supply of shares on the market.
But I guess that is a mute point at this time.
Would love to see the share price get above 2.50 before YE and start 2015 on a good note.
Sentiment: Strong Buy
I don't recall Mgmt ever giving a 2016 forecast. It seems to me that they are handling the current oil price situation in a very prudent fashion.
As alluded, the insider’s gargantuan shares purchased, signifies a galvanized confidence in Goldfield’s prospect: This stems from the $87M backlog, expected to realize as revenues for the next 12-months and onward, based on third quarter earnings of fiscal 2014.
Goldfield’s soon-to-realize fortunes were the fruits of management diligent on “developing and growing electrical construction services under Multi-year Service Agreements (MSAs).” According to the firm, “MSA backlog grew 392 percent to approximately $246M” for Q3 FY2014 versus $50M for the same period a year prior. Further, $48M from the backlog are expected to turn into actual revenues in the next 12-months.
Investors should note these MSAs were recently signed and Goldfield has yet to commence those construction projects. Hence, significant improvement in revenues and earnings has yet been recorded, and will highly likely turn to substantial profits in the upcoming quarters. Needless to say, there is no guarantee that MSA will transform into earnings.
All in all, Goldfield fundamentals are improving: CEO Scottile’s vote of confidence speaks volume for business prospect going forward.
Shares price gained 6.19 percent at $2.35. The company has a market cap of $55M, 25.4M shares outstanding and 7% institutional ownership.
Reporting as of 1:34pm ET by Dr. Hung V Tran, MD, MS of The 360-MD Report
Disclosure: I am long on GV
Sentiment: Strong Buy
Published this afternoon:
Published: Thursday, 11 December 2014 14:06 Written by Doctor Hung Tran, MD, MS
Waves of confidence ripple across Wall Street since CEO Scottile John H purchased $434,000 worth of stock directly from the market on December 5, 2014. Represents a value that is more than half of the Chief’s salary, the purchase has been his largest transaction since 2003.
When insiders purchase significant shares, especially directly from the market, investors have reason to feel more confident about the firm’s prospect. Headquartered in Melbourne, Florida, Goldfield is a leading provider of electrical transmission construction and maintenance services to the energy infrastructure industry throughout most of the United States.
Goldfield installs and maintains transmission lines for electric utilities and renewable energy firms. The company also services mobile service providers through the fiber optics transmission segment. Despite having a residential property business, revenues for the segment are periodic and inconsequential.
Sentiment: Strong Buy
I think this continuous run up and low volume afternoon pull backs will clean out some of the weak hands prior to big breakout move above 2.50.
Sentiment: Strong Buy