Can someone clarify what the new MLP with Crosstex will mean to Devon shareholders? Do shareholders receive shares of the new MLP and the income that will be derived from such shares?
Based on recoverable reserves, the Wolcamp formation is second in the world, only to the Ghawar field in Saudi Arabia. With an estimated 500 to 600 MBOE of reserves per well based on only a 3.5% recovery factor, you can see the potential for further upside with improved techniques. Yes, this Trust has a ton of oil left to recover in the Permian over the next several decades.
Valueman, you pontificate on this message board over and over about various issues with Halcon, mostly negative. Yet, you never give your opinion on what you think the current market value of Halcon is. In simple terms, what do you think a buyout price would be Today?
Simple question- Could Floyd sell the company today for $4.50 or more per share? The answer is most likely yes and probably north of $5.00. So, is this a good buying opportunity? The answer is yes and if it goes below $3, buy more, much, much more.
I agree, this is not one of the 20 year term trusts like Sandridge which are also a one trick pony limited to a single formation. I am adding under 12.
The Permian alone has enough unrisked upside to double the reserves of the entire trust. If you add the Haynesville unrisked upside potential, you have the possibility to triple the current reserves of the trust.
Permian- future waterflood potential = 6 million BOE
-future CO2 potential. =26 million BOE
Haynesville- unrisked potential. =46 million BOE
Total Unrisked Potential Reserves. =78 million BOE
Whatever Liza, you basically called me a fraud for quoting the Trust estimate of 50 years of production and you are not man enough to admit your own mistakes. I will no longer acknowledge you.
Form:424B1, Registration No. 333-174225-01, Prospectus; page 2, paragraph 4 - "Based on the reserve reports, economic production from the Underlying Properties is expected for at least 50 years, except that economic production from the Haynesville Shale and Lower Cotton Valley wells is expected for 25 years." The prospectus goes on to say that production in the permian can be increased from from this estimate to even a greater amount through water flood and CO2 opportunities., not to mention future infill drilling. Estimated economic life in the Haynesville may also be conservative due to future opportunities in oil potential from various zones and future horizontal drilling for gas.
There is a ton of oil left in their Permian fields and they have more than two Lost Tank wells to drill in their New Mexico Permian locations from what I have read.
First of all, Merry Christmas. This is a day for celebration, not debate. If you read the FULL prospectus, the estimated life of the Permian production is over 50 years and the estimated life of the Haynesviille production is at least 20 years.
I wish everyone a Merry Christmas.