Well has recovered approximately 14% of completion fluids as of November 4, 2013 and is currently producing 667 barrels of oil and 641 Mcf of natural gas per day.
Gastar Exploration Ltd vs. U.S. Specialty Ins. Co. and Axis Ins. Co. (Cause No.2010-11236) District Court of Harris County, Texas 190th Judicial District . On February 19, 2010 , the Company filed a lawsuit claiming that the Company was due reimbursement of qualifying claims related to the settlement and associated legal defense costs under the Company's directors and officers liability insurance policies related to the ClassicStar Mare Lease Litigation settled on December 17, 2010 for $21.2 million . The combined coverage limits under the directors and officers liability coverage is $20.0 million . The District Court granted the underwriters' summary judgment request by a ruling dated January 4, 2012 . The Company appealed the District Court ruling and on July 15, 2013 , the Fourteenth Court of Appeals of Texas reversed the summary judgment ruling granted against the Company on the basis of the policies' prior-and-pending litigation endorsement and remanded the case for further proceedings in the District Court. The District Court proceedings will include, but not be limited to, a determination of whether the Company's claims are securities claims covered by the insuring agreements. The insurers have filed a motion for reconsideration in the Court of Appeals. The insurers may seek discretionary review from the Texas Supreme Court if they do not succeed with their motion for rehearing.
Gastar Exploration USA, Inc., et al v. Williams Ohio Valley Midstream LLC (American Arbitration Association Matter No. 70-198-Y-00461-13) . On July 16, 2013 , Gastar USA and two similarly situated co-claimants initiated an arbitration proceeding against Williams Ohio Valley Midstream LLC (“Williams OVM”). The claimants allege that Williams OVM has breached various agreements relating to the gathering, processing and marketing of natural gas, NGLs and condensate produced from properties that are owned in part by Gastar USA in the Marcellus Shale in Marshall and Wetzel Counties, West Virginia, and request that an Arbitration Panel assess an unspecified amount of damages against Williams OVM for, among other claims, failure to timely construct certain gathering and processing facilities, maximize the net value of produced condensation, and fractionate and purchase NGLs as provided in the agreements. On August 7, 2013 , Williams OVM filed an answering statement and counterclaim for damages in excess of $612,000 in the arbitration matter. The arbitration has been scheduled for a final hearing in October 2014 . Gastar USA intends to vigorously pursue its rights in the arbitration matter against Williams OVM.
Mr. Kleinheinz is the founder and president of Kleinheinz Capital Partners, Inc. (KCP), the manager of the Global Undervalued Securities Fund, a $2.25 billion long-short equity / global macro themed hedge fund which has returned 26.6% (net) per annum. KCP is based in Fort Worth, Texas, employs 26 professionals and manages investments for over 300 high-net-worth individuals and institutional investors
If you go to to Investor Village; I posted about the U. S. Enercorp and why production was down. I am tired of posting on two Message Boards.
All I want to know is where is my Pudding from Barrylake.
CRIMSON EXPLORATION OPER., INC. (190005) Medium:
Type: Original RRC Identifier: 743761
Received: 10/15/2013 Gas Well #: 1H
Gas Well No.
MADISONVILLE, W. (WOODBINE -A-) STUCKEY-UPCHURCH UNIT A
Gas/Casinghead Gas - MCF
08/2013 N/A 0 0 2,870 191 01
YAHOO is hard to Post:
Only August Production so far with 2,870 MCF Produced; of which 191 MCF was used on Rig;
2,679 MCF was Sold.
CXPO is holding this Secret for September like the Buda Wells.
Go back to KOG.
I can't' drink alcohol since my Mitral Valve replacement in October 7, 1994. I take Coumadin, a Blood thinner since then. I take INR Test every month or quicker if level is not correct. I will know if I am dead if I don't hear the Mitral Valve clicking. Next year is my 20th anniversary,
I just celebrated my 52th anniversary of going into the Army; October 24, 1961.
I hope to be celebrating AXAS hitting $4 in December right after the 4 Bakken Wells are producing.
ED (sticking to my warm Dr. Pepper)
Message #8088 on Investor Village; "AXAS" Message Board.
In 2013; Cash Flow was approx. $12 Million per quarter.
The $12 Million is short of Completing one and half Bakken Well at 100% Working Interest or approx. Five Bakken Wells at 34% Working Interest.
Low Cash Flow means selling off Non Core Assets:
On October 31, 2013, the Company monetized the Bakken and Three Forks rights on its' Fairview Prospect in Richland County, Montana and McKenzie County North Dakota for total proceeds of $10.9 million . The sale consisted of approximately 2,563 net acres and does not have any associated production. "
Hey; that is good for one more Completed Bakken Well at 100% Working Interest.
ED (Enough Cash Flow to be happy that I am stocked Up on Diet Dr. Peeper and Diet 7 Up)
"In Atascosa County, Texas, Abraxas recently drilled and cased the Blue Eyes A 1H to 13,285 feet including a 5,000 foot lateral section. The well is currently scheduled to be completed in late November. Abraxas owns a 100% working interest in the Blue Eyes A 1H.
In Nolan County, Texas, Abraxas successfully completed the Spires Ranch 129 2H. The well took longer than anticipated to recover the load water from its stimulation and a thirty day production rate will be provided when available. Abraxas owns a 100% working interest in the Spires Ranch 129 2H. "
ED (If theses Two Wells are really good as I expect; I will put a Ice Cube in my Diet Dr. Pepper)
In McKenzie County, North Dakota, the Lillibridge 5H, 6H, 7H and 8H are currently being fracture stimulated. Post completion, the wells will be immediately turned to sales. On the Jore Federal East pad, surface casing has been set on the Jore 1H, 2H and 4H. The company is currently drilling the intermediate section of the Jore 1H after which the rig will mobilize to drill the intermediate sections of the Jore 2H and 4H. Abraxas owns a working interest of approximately 34% and 76% in the Lillibridge and Jore pads, respectively"
Come December, the Lillibridge Wells will be fully producing.
"Prices closed on September 30, 2013 at $102.33 per Bbl of oil and $3.56 per MMBtu of gas, compared to closing on September 30, 2012 at $92.19 per Bbl of oil and $3.05 per MMBtu of gas.
Note: If Oil stays around $95 or below; Abraxas will reverse its 3rd quarter Unrealized Hedge Loss of approx. $4.5 Million to a 4th Quarter Unrealized Gain of $4.5 Million.
"On May 9, 2008, the Company entered into an advancing line of credit in the amount of $5.4 million for the purchase and finish out of a building to serve as its corporate headquarters. This note was refinanced in November 2008. The note was modified on April 4, 2013, reducing the interest to a fixed rate of 4.0% , effective March 13, 2013 and was payable in monthly installments of principal and interest of $33,763 based on a twenty year amortization. This note was modified on July 20, 2013. The modification extended the maturity date to July 20, 2023 . The note will bear interest for five years at a fixed rate of 4.25% and is payable in monthly installments of $ 34,354 . Beginning August 20, 2018, the interest rate will adjust to the current bank prime rate plus 1.00% with a maximum rate of 7.25% . The note is secured by a first lien deed of trust on the property and improvements. As of September 30, 2013 , $4.6 million was outstanding on the note. "
Again: Very nice Interest Rate.
ED (still drinking my 7Up; the 2-Liter Dr. Pepper is empty); only on page #17 of 10Q.
"On February 14, 2012, Raven Drilling finalized the note with respect to the rig loan agreement. The principal amount of the note is $7.0 million and bears interest at 4.26% . Interest only is due for the first 18-months of the note and thereafter, the note will amortize in full over the remaining life of the note. Interest and principal, when required, is payable monthly. Subject to earlier prepayment provisions and events of default, the stated maturity date of the note is February 14, 2017. As of September 30, 2013 , $7.0 million was outstanding under the rig loan agreement. "
Again: A very nice Interest Rate being offset by savings having your own Rig.
Posters on this Board really blasted Mr. Watson on this Rig.
Hindsight: This was excellent for Abraxas.
"We have a senior secured credit facility with Société Générale, as administrative agent and issuing lender, and certain other lenders, which we refer to as the credit facility. As of September 30, 2013 , $99.0 million was outstanding and $ 48.0 million was available under the credit facility."
". At September 30, 2013 the interest rate on the credit facility was 2.9% based on 1 -month LIBOR borrowings and the level of utilization.'
Nice Interest Rate !!!!
ED ( now drinking warm Diet 7UP with Lime Wedges) while reading the 10Q(History Book)
From the 10Q:
At December 31, 2012, the Company had $169.6 million of net operating loss carryforwards for U.S. tax purposes and $15.0 million of net operating loss carryforwards for Canadian tax purposes. The U.S. loss carryforward will expire in varying amounts through 2032 and the Canadian loss carryforward will expire in 2032 , if not utilized.
"The accompanying financial statement presents the revenues and direct operating expenses of the West Edmond Hunton Lime Unit located in Kingfisher, Logan and Oklahoma Counties, Oklahoma oil and natural gas properties (the “WEHLU Acquisition Properties”) to be acquired by Gastar Exploration USA, Inc. (“Gastar USA”), a wholly-owned subsidiary of Gastar Exploration Ltd., pursuant to a Purchase and Sale Agreement dated September 4, 2013 among Lime Rock Resources II-A, L.P. and Lime Rock Resources II-C, L.P, (together, the “Lime Rock Parties”) and Gastar USA, (the “Purchase Agreement”). The acquisition of the WEHLU Acquisition Properties is expected to close on or before November 26, 2013 for a cash purchase price of $187.5 million, subject to, among other customary adjustments, adjustment for an acquisition effective date of August 1, 2013. "
"Pursuant to the Purchase Agreement, Gastar USA will acquire a 98.3% working interest (80.5% net revenue interest) in certain acres of the West Edmond Hunton Lime Unit located in Kingfisher, Logan and Oklahoma Counties, Oklahoma, for a cash purchase price of $187.5 million, subject to, among other customary adjustments, adjustment for an acquisition effective date of August 1, 2013.
" your sentiments have turned positive"
All it took was the Sixth Hunton Limestone Production. A excellent Well.
Everything hinge on the Hunton Well.
1. Logic told me that Porter wouldn't spent approx. $180 Million on Leases if Gastar didn't know the Hunton Project was very good.
2. What I need was confirmation that Hunton was Good.
3. What most investor missed was how Porter was able to accumulate enough Cash to put this deal thru.
a. . It all start with settling the Chesapeake Lawsuit, enabling GST to get Hunton Leases for Free.
b. GST hung on until GST finally sold its East Texas Leases for Cash.
c. GST than sold Preferred Stock to build up Equity so that it could Sell more Senior Secured Debt.
d. Sold more Senior Debt with Ease.
e. When Acquisition is finalized; GST is able to double its Borrowing Base.
4. Note that Gastar didn't sell any Common shares and diluted shareholders value.
As a Retired Controller, I just watched how quickly this was achieved. GST must have an excellent Finance & Accounting group to make this look so easy.
Gastar , when this acquisition is completed, will be sitting with a huge chunk of Hunton Leases that will keep them going for years.
Will someone buy Gastar. The company, where I was Controller, was bought out. The main comment from the President of Schering-Plough, the acquirer, was "we wouldn't buy your company if we didn't think your management was very good."
Gastar management is Excellent. Gastar kept up its main focus in drilling Hunton Wells while all this financial events were happening.
ED (back to drinking my Diet Dr. Pepper(cherry flavored) with Lime Wedges. Life is good.