Neptune 20% (BHP Billiton operator)
Dantzler 20% (Noble Energy operator)
Both should be near completion.
The Dantzler rig is the Atwood Advantage which Atwood said experienced downtime in Q2, plan is to drill well #2 then commence completion operations.
Per share WTI represents exceptional upside potential from both these wells and additional planned wells this year, all paid for from cash flow.
Fidelity added a bit, so Parnassus was the big seller.
Waiting on Dantzler, maybe the analysts are as well.
Good results, production increase in 2015, good position in the Permian and per share more deep water exposure than anyone else and yet we drag along the bottom.
By Friday the Institutional holdings for June 30 will be updated. Look to what Fidelity did.So far the net tute divesture is about 20% of the float, mostly Parnassus dumping 7 million shares after a five year no profit hold.
Next GOM lease sale is Aug 20, may have to wait on Dantzler success until after sale
Directors were buying $1's higher a few months ago , but nothing so far this week, blackout lifted so why not buy unless restricted.
All interesting and the shorts and 100 share pushdowns are in total control.
The early 2014 capex plan was $450 million, today it was increased to $635 million.
That suggests cash flow of close to $9/ share. Not one E&P with Revenue in the billion range trades at these low multiples, fair value has to be +$20/share.
W&T has a huge inventory of deep water leases, the majors are all drilling in the deep water. Look at BP/Nobles Bright project now drilling with W&T the offset leaseholder.
First q on CC was about these wells and Andrews County wells. Good news for WTI.
Diamondback completed its second and third northern Martin County Wolfcamp B wells. The Mabee Breedlove 2302H and Mabee Breedlove 2202H wells in Martin County were drilled with an average lateral length of 7,331 feet. The average peak 30 day flowing 2-stream initial production ("IP") rate to date for these wells was 684 boe/d (83% oil) with an average peak 24 hour flowing 2-stream IP rate of 927 boe/d (83% oil). Peak rates are typically not reached until the well is placed on artificial lift.
• The UL Digger 502H, Diamondback's second horizontal Clearfork shale well in Andrews County, had a 7,203 foot lateral completed with 31 stages, achieving a peak 24 hour 2-stream IP rate of 706 boe/d (94% oil) on electric submersible pump (ESP). The peak 30 day average 2-stream rate to date is 473 boe/d (91% oil) on ESP. This well tested the lower Clearfork shale, and appears even stronger than the initial successful horizontal test, which was drilled in the upper Clearfork shale. The company believes this confirms the economic viability of the play on Diamondback's nearly 8,000 contiguous net acres in central Andrews County.
HOUSTON, Aug. 5, 2014 /PRNewswire/ -- W&T Offshore, Inc. (NYSE:WTI) announced today that the U.S. Environmental Protection Agency (EPA) lifted the suspension and proposed debarment, and removed the statutory disqualification, previously imposed by the EPA. This action is subject to the condition that the Company continue to comply with the conditions of its existing plea agreement (previously announced January 3, 2013) resolving environmental violations relating to the Company's Ewing Banks 910 platform in the Gulf of Mexico. The EPA's action allows full participation by W&T Offshore, Inc. in future federal contracts, including future federal oil and gas leases, assistance activities and federal oil and gas leasing activities.
Tracy W. Krohn, Chief Executive Officer and Chairman, stated, "This decision demonstrates W&T's dedication to compliance and prudent operations in the Gulf of Mexico. We take our responsibility to protect the environment and the safety of our employees and contractors very seriously."
Paulson predicted such a deal.
"The one area where I'm expecting much more M&A activity is the oil and gas industry, specifically in the U.S.. Many companies are performing extremely well but are trading at low multiples," he told The Wall Street Journal in February. "There are many independent companies out there that are attractive. I could see a larger independent producer buying a smaller one, or a large company that's looking to replace reserves could acquire faster-growing producers. The buyers could be U.S. or global corporations."
Paulson invests more of its money in merger strategies than any other, about $8 billion as of June 1. The Paulson International offshore fund, which follows the strategy, is up 6.58 percent net of fees through June after gained 3.21 percent last month, according to a person familiar with the performance. The Paulson Enhanced fund, which places similar bets using more leverage, is up 11.8 percent for the year and was up 6 percent in June.
Since March 24, the DEF 14A date Parnassus liquidated 7.4 million shares of WTI.
Tracy has lost his longest fund supporter, volatility will reign until the Board assumes it's fiduciary responsibility.
Long time holder Parnassus Core Equity, Small Cap and Fund accounts appear to have sold about 6.1 million shares of WTI from April 1 to June 30. Parnassus has updated it's holdings for each fund for June 30 positions. SEC filings expected any day.
They have retained a modest position in EXXI.
5/19/2014 - BOEM GREENLIGHTS BP PLANS TO DRILL BRIGHT PROSPECT IN AT 362
BP received a permit to drill the Bright exploration prospect in Atwater Valley block 362. The ENSCO DS-4 will drill the well in approximately 5,600 FSW (1,707 MSW). The well is expected to take 170 days to drill and temporarily abandon with additional days needed if sidetracked. The Ensco DS-4 is under contract with BP through mid 2016 at $555,000/day. ENSCO DS-4 recently mobilized to the Gulf of Mexico from Brazil, bringing BP’s deepwater rig fleet in the U.S. Gulf of Mexico to eight unit – two from Ensco, four from Seadrill and two from Transocean. The super-major pays an average of $527,000/day on the eight rigs in-service, which is the highest among operators in the area with multiple rigs. BP received approval of the exploration plan for the Bright prospect in January 2014.
Looking at the pdf BOEM central gulf suggests that Bright on 362 is directly north of WTI's likely block 406. Noble shows 406 as part of their 17 blocks. Did WTI sell or contribute 406 and three blocks east to BP/Noble's program? Google pdf BOEM central gulf GOM and compare to Noble's map and WTI's most recent presentation.
Is in Atwater Valley and appears adjacent to WTI's 11 lease blocks in Atwater Valley.
Look at the Noble map and compare the location to the Atwater Valley leases shown in WTI's most recent presentation.
HOUSTON, June 16, 2014 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced that it has reached an agreement with BP Exploration & Production Inc. to acquire 50 percent of BP's interest in 17 deepwater exploration leases in the Gulf of Mexico. Each of the leases resides in the Atwater Valley protraction area, with Noble Energy acquiring a 50 percent working interest in 13 leases and an average 26 percent working interest in four leases.
As part of the transaction, Noble Energy is participating with a 50 percent working interest in the Bright prospect, which is currently drilling on Atwater Valley Block 362 in a water depth of approximately 5,600 feet. The initial well, targeting multiple Upper and Middle Miocene reservoirs, is anticipated to be drilled to a total depth of 13,500 feet. The Company's total estimated gross unrisked resource range (P75 - P25) for the Bright prospect is 90 to 350 million barrels of oil equivalent. In addition to the Bright prospect, there are multiple follow-on exploration opportunities that have been identified on these newly acquired leases.
Maybe Tracy should go racing more often, well heeled folks at Le Mans buying?
Short position pulled back below 5 mill, I believe 4 mill is a core short established by bondholders as an insurance policy so the real short showed a nice decline. American Bulls got their last signal (Short) dead wrong, they covered today.
American Energy Partners LP on Monday said it would acquire about 63,000 net acres of oil and gas properties in Texas' southern Permian Basin from affiliates of Denver-based Enduring Resources LLC for $2.5 billion. At closing, the properties are expected to have net production of about 16,000 barrels of oil equivalent a day. AEPB said it plans to increase operated drilling activity to six to eight rigs by the end of 2015, up from the four rigs Enduring currently uses.
Abrams Capital's main funds have posted an average annualized return of about 15% since its founding in 1999, documents show, nearly double the average for hedge funds tracked by HFR Inc. and triple the S&P 500 index, including dividends.
The firm invests in a relatively small number of beaten-down companies at a time, mostly through stocks at present, though it has also dipped into some of the more-talked-about fixed-income deals of recent years, including the unwinding of bankrupt Enron Corp. Among its recent stockholdings have been bookseller Barnes & Noble Inc., retailer J.C. Penney Co. and money-transfer firm Western Union Co., securities filings and investor documents show.
Mr. Abrams also is among the small group of investors that has taken a big bet on government-controlled mortgage companies Fannie Mae and Freddie Mac, wagering that the Obama administration's plan to wind down and replace the entities will fail, according to investor documents.
The firm employs three analysts and a small back-office staff, but Mr. Abrams approves all trades personally, according to people that have worked with him. Other firms of comparable assets can have hundreds of employees.
He also built his fortune with the equivalent of one hand tied behind his back: His firm uses no leverage, or borrowed money, and often sits on billions in cash. It currently holds about 40% of its $8 billion under management in cash, investor updates show.
Mr. Abrams got his start in 1988 at Baupost Group LLC, also based in Boston. Run by Seth Klarman, Baupost is one of the world's largest hedge-fund firms, with $27 billion under management.
The two remain friends, and Mr. Klarman's personal foundation has put money into Abrams Capital's funds. Mr. Klarman described his protégé as "smart as a whip."
"He loves a good puzzle and a good treasure hunt," Mr. Klarman said.
1/2 of WTI's reserves, 1/4 of production with adjoining acreage to WTI's Permian properties.
Maybe Tracy will reopen the Data room for the Permian assets.
Notice American Bulls went to BUY today, the Woodside acquisition should have done it as Neptune's production will make up most of the 2014 production guidance adjustment.
Back to $19 with a host of new institution holders and shorts.