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US Energy Corp. Message Board

richardclovis 53 posts  |  Last Activity: Aug 3, 2015 8:47 AM Member since: Mar 9, 2013
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  • richardclovis richardclovis Aug 3, 2015 8:47 AM Flag

    Emerald recently completed and produced the Greg Marmalard 3-28-33H and Dagny Taggart 3-21-16H wells. These are Emerald's southernmost wells in McKenzie County, and now substantially derisk the largest percentage of our undeveloped acreage position.

    Emerald's Greg Marmalard 3-28-33H (77% WI) well in McKenzie County, which was completed with an approximate 10,000 foot lateral and was fracked with the new 50 stage equivalent enhanced completion design, achieved a peak 24-hour average production rate of 1,597 barrels of oil equivalent ("BOE") per day and a 30 day cumulative production rate of 20,139 BOE on a 28/64 inch choke.

    Emerald's Dagny Taggart 3-21-16H (100% WI) well in McKenzie County, which was completed with an approximate 10,000 foot lateral and was fracked with the new 50 stage equivalent enhanced completion design, achieved a peak 24-hour average production rate of 1,089 BOE per day and a 30 day cumulative production rate of 16,178 barrels of oil equivalent BOE on a 28/64 inch choke.

    The Marmalard and Taggart wells initially track the type curve of multiple Emerald operated oil wells approximately 20 miles to the north in McKenzie County. These two wells confirm Emerald's geologic thesis in southern McKenzie County and provide two modern control points for further development of our southern acreage.

  • richardclovis by richardclovis Aug 3, 2015 8:44 AM Flag

    Emerald has entered into a purchase and sale agreement and other related agreements with Koch Exploration, a wholly-owned subsidiary of Koch Industries, Inc. Subject to customary closing conditions, Koch Exploration will acquire a 30% working interest from Emerald in all of its undeveloped southern drilling spacing units in McKenzie County, North Dakota, for $16.6Mln (~25,000 net acres). Separately Koch Exploration has agreed to acquire a portion of Emerald's undeveloped leasehold in Richland County, Montana, for $0.9Mln (~4,500 net acres). Koch Exploration will reimburse Emerald for their proportionate 30% share of the existing AFEs of recently drilled and uncompleted wells in southern McKenzie County. The total size of the transaction is approximately $24.4Mln and all proceeds will be used to repay outstanding borrowings on the revolving line of credit.

    In conjunction with the transaction, Emerald and Koch Exploration have entered into a drilling agreement whereby the companies have agreed to drill two wells in 2016 in southern McKenzie County, on two undeveloped drilling spacing units to further delineate the acreage position. An area of mutual interest ("AMI") was established as part of the deal so that when acreage is acquired by either company in the future, leasehold and costs will be split 50/50 between them.

    John Mueller, president of Koch Exploration stated "We are pleased to co-invest with McAndrew and his team at Emerald Oil. Koch Exploration comprehensively analyzed the technical attributes of the acquired acreage and is excited about working with Emerald's operating team to develop the play."

  • Reply to


    by chicken_stick4 Jul 29, 2015 11:18 AM
    richardclovis richardclovis Jul 30, 2015 10:15 AM Flag

    Excellent post...their most important CC coming up since they became an Operator, for many reasons...mostly perception vs reality..
    Never a recommendation to buy or sell EOX...only an opinion..
    All the best..

  • Reply to

    Operation's Update

    by richardclovis Jul 28, 2015 4:44 PM
    richardclovis richardclovis Jul 29, 2015 10:56 PM Flag

    I should have pointed out approx 20,000 whole brls each....(on a restricted choke)... is very good !
    By contrast the Jore Federal 1H, 2H, and 4H...showed first 30 day whole barrel average of approx..22,250 per June of 2014

  • Reply to

    Operation's Update

    by richardclovis Jul 28, 2015 4:44 PM
    richardclovis richardclovis Jul 29, 2015 9:31 PM Flag

    On July 23...NDIC listed the " Producing Wells Completed" report for the Jore Federal wells in question...which usually represents " first 24 hours of measured production"...which averaged 932 BOPD per well..
    Based on these numbers..imo...the 30 day average of 653 BOPD is NOT collective..but each...representing 20,000 Whole Brls of OIl for the initial month for each well...which is again...imo...very good !!

    All the best..

    July 23 Producing Wells Completed...





  • Reply to

    Operation's Update

    by richardclovis Jul 28, 2015 4:44 PM
    richardclovis richardclovis Jul 28, 2015 5:56 PM Flag

    At Abraxas' Jourdanton prospect in Atascosa County, Texas, the Grass Farm 2H averaged 191 boepd (179 barrels of oil per day, 70 mcf of natural gas per day) (1) over the well's peak 30 days of production. Abraxas owns a 100% working interest in the Grass Farm 2H.

    Second Quarter 2015 Production

    Production for the second quarter of 2015 averaged approximately 5,471 boepd (3,653 barrels of oil per day, 7,669 mcf of natural gas per day, 539 barrels of NGLs per day). Production volumes for the quarter were negatively impacted by an estimated 433 boepd due to gas processing constraints and related curtailments in the Bakken and Permian. Downtime associated with offsetting fracture stimulations also negatively impacted volumes during the quarter by an estimated 289 boepd.

    Recently, Abraxas has been selling virtually all of the Company's produced gas in the Bakken and gas processing constraints in the Permian have partially abated. Moreover, Abraxas' Bakken well performance continues to exceed expectations. With three additional Bakken wells now ready for completion, Abraxas reiterates the Company's 2015 production guidance of 6,500-7,000 boepd. Abraxas also reiterates that the Company forecasts production of over 7,000 boepd in 2016 and 2017 by maintaining a one rig Bakken program, which requires approximately $50-$60 million/year in capital expenditures.

    Bob Watson, President and CEO of Abraxas, commented, "As expected and previously guided, second quarter production dipped with the downtime associated with offset fracture stimulations and gas processing constraints in the Bakken and Permian. These issues have abated and we expect they will continue to improve with third party infrastructure expansion in the fourth quarter of this year."

    "We remain very pleased with the consistent and above average Bakken well performance we continue to experience. Additionally, the early results from the second bench Three Forks test we participated in are very encouraging and have the potential to provide even more inventory at North Fork and Lillibridge. With drill and complete costs continuing to trend down, the economics of our Bakken development continue to positively surprise."

    (1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.

  • richardclovis by richardclovis Jul 28, 2015 4:44 PM Flag

    Abraxas Provides Operations Update
    10 minutes ago - DJNF
    SAN ANTONIO--(BUSINESS WIRE)--July 28, 2015--

    Abraxas Petroleum Corporation ("Abraxas" or the "Company") (NASDAQ:AXAS) today provided the following operations update.

    Williston Basin

    At Abraxas' North Fork prospect, in McKenzie County, North Dakota, the Jore 5H, Jore 6H, Jore 7H and Jore 8H, producing from the Middle Bakken, averaged 819 boepd (653 barrels of oil per day, 994 mcf of natural gas per day) (1) over the wells' peak 30 days of production. Each well was constrained on a smaller than normal choke to minimize flaring. To date, total drill and complete costs (before any needed expenditures for pump) averaged $6.3 million. On the Ravin Northwest pad, the Ravin 8H, Sten--Rav 1H and Stenehjem 5H are scheduled to be completed in August. Recently, Abraxas successfully mobilized to the Stenehjem 10H-15H pad where it is currently drilling the intermediate section on the first well of a six well pad. Abraxas owns a working interest of approximately 76%, 74% and 78% in the Jore 5H-8H, Ravin Northwest wells and Stenehjem 10H-15H, respectively.

    Abraxas recently participated in its first Second Bench Three Forks test, drilled by a third party operator, on a unit directly offsetting the Company's North Fork acreage. Early results from the well are very encouraging with a 24 hour IP of 1,169 boepd (917 barrels of oil per day, 1,510 mcf of natural gas per day) (1) . If the well continues to perform in-line with expectations, Abraxas has approximately 20 gross incremental Second Bench Three Forks wells across the Company's 5 operated units at North Fork and Lillibridge.

    Eagle Ford

    At Abraxas' Dilworth East prospect, in McMullen County, Texas, the R. Henry 1H averaged 703 boepd (428 barrels of oil per day, 1,649 mcf of natural gas per day) (1) over the well's peak 30 days of production. Abraxas holds a 100% working interest in the R. Henry 1H.

  • richardclovis by richardclovis Jul 24, 2015 6:14 PM Flag

    New Ageron Austin Chalk Well Permit pending...

    S McKnight #1222H..Dimmit..Ageron Energy
    API #
    RRC #808799
    Location 4.0 miles SW of CARRIZO SPRIN
    Primary Field..Austin Chalk
    Permit pending July 24 2015

    Link...on Investor Village Board

  • July 23 Producing Wells Completed...





  • richardclovis by richardclovis Jul 23, 2015 11:41 AM Flag


    Aside from weakness in the general commodity markets, Abraxas is unaware of any fundamental reason for the Company’s recent stock price underperformance. Abraxas notes that the Company exited June 30, 2015 $108 million borrowed on the Company’s $165 million borrowing base. With an additional nine well completions during the quarter, and only bank debt (as well as nominal amounts for a building mortgage and rig loan) in the Company’s capital structure, the Company is very comfortable with its asset coverage. Additionally, with a $55 million capital program that approximates forecasted cash flow, the Company remains comfortable this strong financial positioning should continue through 2015. Moreover, the Company reiterates that in outer years, it currently forecasts it can hold production at over 7,000 boepd running a one rig Bakken program, which approximates a $50-$60 million capital program. Abraxas also reiterates the Company’s 2015 production guidance of 6,500-7,000 boepd.

  • richardclovis richardclovis Jul 23, 2015 11:26 AM Flag

    "but more importantly they are planning on increasing production "slowly per guidance", that is remarkable as they are doing no drilling whatsoever"
    Actually....imo....production is not the problem..
    With no current drilling...they are completing wells from their "Inventory of drilled wells" currently low completion costs.... with very good to excellent initial results from the 2 Excalibur wells, and 2 Joel Goodsen wells...and just announced probably their best well...the Greg Marmalard, in the Mondak Field attained from Kodiak...with another 6 wells available, and able to drill a new well in less than 20 days with the 1 idled Rig...
    Additionally...with most updates to existing wells complete....May numbers were up over April..
    The problem is Management's credibility with perceived ATM sales continuing (probably a reality)....and continued plummeting oil prices affecting E&P's across the board...including AXAS, TPLM, HK, and NOG among others..
    Still no position in any currently....waiting on 2nd Qtr updates...
    All the best..

  • richardclovis by richardclovis Jul 16, 2015 6:31 PM Flag


    On July 16, 2015, U.S. Energy Corp. ("Company") entered into a third amendment (the "Third Amendment") to its senior secured revolving credit facility, dated July 30, 2010, as amended (the "Senior Credit Agreement"), among Energy One LLC, the Company, as guarantor party thereto, the lender parties thereto and Wells Fargo Bank, National Association. The Third Amendment provides for, among other things: (i) a limited waiver with respect to the restricted payments covenant pursuant to which a transfer of $5,000,000 from Energy One LLC to the Company will be permitted in 2015; (ii) a limited waiver of the current ratio covenant as it relates to the fiscal quarters ending June 30, 2015 and September 30, 2015; and (iii) a borrowing base of $7,000,000, subject to further adjustment from time to time in accordance with the Senior Credit Agreement .

  • Reply to

    Crested Butte News...7/9/2015

    by richardclovis Jul 13, 2015 11:46 AM
    richardclovis richardclovis Jul 13, 2015 11:48 AM Flag


    Melton said the Colorado Water Quality Control Division, the state Mine Reclamation Board and the U.S. Forest Service all “have some skin in the game and could demand a bond. HCCA strongly encourages the town to draft a letter and put it on the record that the town needs protection.”

    Huckstep asked the staff to come up with a town-specific analysis for the next council meeting.

    Ronai said an operating bond was not the only concern. He said given that the plant was more than 30 years old, “It will need some serious maintenance sooner rather than later. So an endowment fund to cover the $1.8 million annual operating costs on top of some maintenance and capital improvements money is likely needed.”

    Belkin promised the council would receive a thorough background memo of previous discussions.

  • richardclovis by richardclovis Jul 13, 2015 11:46 AM Flag

    The Crested Butte Town Council will discuss the evolving Mt. Emmons molybdenum mine and water treat
    ment plant situation at its next council meeting, July 20.

    Councilman Shaun Matusewicz wants to focus on a request from the Red Lady Coalition (RLC) and High Country Conservation Advocates (HCCA) to ask state and federal agencies to impose a bond on the plant in case the mining company controlling the proposed mine, U.S. Energy, folds.

    But Crested Butte mayor Aaron Huckstep wants the council discussion to be much more broad and look at potential unfolding opportunities to take control of the mineral rights and subsequent land use possibilities.

    Town attorney John Belkin said he and the town staff would put together a comprehensive history of talks and negotiations held over the years between the town and U.S. Energy in light of a fading company.

    RLC chairman Bill Ronai gave the council some background on recent developments with the company. He said the stock had gone to 47 cents from $4 a share in less than a year, giving it a market cap of just $13.1 million. He said the price of molybdenum sat at about $6 a pound and Thompson Creek, a one-time partner with U.S. Energy with a heavy moly background, was mothballing two of its major molybdenum mines. The cost of running the water treatment plant on Coal Creek and holding the mineral rights was costing U.S. Energy millions of dollars every year.

    HCCA public lands director Ali Melton said all that was adding up to potential trouble. “This information emphasizes something we have pushed for a long time and that’s that we need the water treatment plant to be bonded,” she said. “That helps protect the community. I would ask the council to let the three primary agencies know of the situation and put it on record that you want a bond that’s big enough to operate the plant if something happens to the company.”

  • richardclovis by richardclovis Jul 13, 2015 8:08 AM Flag

    Richard #1..Zavala..CML Exploration...USEG Interest 9.87% NRI
    API #33226
    RRC #803526
    Location 9.8 miles E of Crystal City
    Dual Lateral Well Spud March 18 2015
    Amended to add 3rd Lateral May 5 2015
    24-hour flow back rate...820 BOE/D Early May
    Apr.........470 Oil..0 Gas (Partial Month)
    May..19,883 Oil..0 Gas

  • richardclovis richardclovis Jul 11, 2015 12:02 AM Flag

    Raging Capital Management..
    661,036 shares...down from 1,000,000 shares a month ago...

  • richardclovis by richardclovis Jun 25, 2015 7:16 AM Flag

    U.S. Energy Corp. Announces Immediate Cost Saving Measures

    RIVERTON, Wyo., June 25, 2015 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG), (the "Company," "we" or "us") today announced that in light of the ongoing oil price environment the Company has taken measures to reduce general and administrative costs by approximately 20%. The cost reductions include a 15% reduction in workforce and a significant reduction in annual compensation for all remaining employees. All officers and directors of the Company have agreed to take a 20% cut in salaries and fees, respectively. The total compensation savings is in excess of $600,000 on an annualized basis. The Company also anticipates a further reduction of approximately $500,000 in G&A costs by the end of 2015.

    CEO Statement:

    "We believe that cutting our general and administrative costs is a prudent business decision in light of the current price of oil. We will also continue to evaluate other cost saving measures going forward which should have meaningful impact to our bottom line," stated Keith Larsen, CEO of the Company. "These measures are part of our forward looking plan that will allow us to continue to participate in our ongoing drilling programs, while we continue to evaluate several potentially accretive transactions in this price environment," he added.

  • Reply to

    EXCO appears to be a logical buyer for USEG .

    by catch007afire Jun 23, 2015 1:31 PM
    richardclovis richardclovis Jun 23, 2015 2:51 PM Flag

    EXCO has only reported results from 1 Buda well in the sweet spot North of the Booth Tortuga Lease Line....and although a very good would seem CML (where USEG has an interest)....would have a better "recipe" for drilling Buda wells...imo

    JMH ZAV #1HB...Zavala..Exco Operating
    API #33209
    RRC #799458
    Location 11.87 miles NE Crystal City
    Spud January 14 2015
    RRC Prod..Oil/Brls...Gas/MCF
    Jan.....720 Oil......0 Gas (Partial Month)
    Feb...9,205 Oil..2,346 Gas
    Mar..11,995 Oil..5,883 Gas
    Apr..11,961 Oil..6,198 Gas

    Jessica #1..Zavala..CML Exploration
    API #33098
    RRC #777738/17789
    Location 10.4 miles E of Crystal City
    Dual Lateral Well Spud March 2 2014
    RRC Prod..Oil/Brls...Gas/MCF
    Apr.....5,281 Oil...3,487 Gas
    May....23,790 Oil..11,140 Gas
    June...22,423 Oil..14,585 Gas
    July...21,506 Oil..22,775 Gas
    Aug....16,044 Oil..19,447 Gas
    Sept...10,923 Oil..18,787 Gas
    Oct....10,599 Oil..26,063 Gas
    Nov.....8,421 Oil..19,775 Gas
    Dec.....7,938 Oil..15,594 Gas
    Jan.....6,772 Oil.......0 Gas
    Feb.....5,627 Oil...8,478 Gas
    Mar.....5,297 Oil.....582 Gas
    Apr....10,962 Oil...4,465 Gas

    Carolpick #1..Zavala..CML Exploration
    API #33150
    RRC #785831/18034
    Location 9 miles E of Crystal City
    Dual Lateral Well Spud May 28 2014
    RRC Prod..Oil/Brls...Gas/MCF
    Aug....22,863 Oil..11,935 Gas
    Sept...22,330 Oil...7,136 Gas
    Oct....27,842 Oil...7,801 Gas
    Nov....24,871 Oil...6,388 Gas
    Dec....28,011 Oil...5,998 Gas
    Jan....26,827 Oil...8,291 Gas
    Feb....24,875 Oil...4,307 Gas
    Mar....24,085 Oil...7,315 Gas
    Apr....15,935 Oil..14,761 Gas

  • Reply to

    New article on Axas in Seeking Alpha

    by eddiehaskkel Jun 13, 2015 11:53 AM
    richardclovis richardclovis Jun 20, 2015 10:27 AM Flag

    Another SA Article out this morning...


    AXAS has brought down its debt/EBITDA ratio impressively in the past few years, indicating that the company is well-positioned to combat weakness in oil pricing.
    AXAS's EBIT has increased in the past year, which indicates that the company will be able to service its debt easily going forward.
    AXAS is increasing the number of frac stages at its wells, a move that will help it extract more oil at lower costs.
    In fact, AXAS was able to frac a 30-stage well at Grass Farm at 38% lower costs, so the company is now gradually increasing its frac stages.

  • Reply to


    by richardclovis Jun 10, 2015 8:45 AM
    richardclovis richardclovis Jun 11, 2015 10:12 AM Flag

    Nobody on this board has been consistently correct in their assessment of EOX since they became an Operator (albeit a great trading vehicle for more than 18 months) than you have...
    Had a chance to exit at $5.73 early which I the latest news exacerbates management's willingness to dilute to keep afloat..
    That being said...there will always be another opportunity to trade EOX going forward, as they have adde some wiggle room...imo
    All the best...

0.6769+0.0819(+13.76%)Aug 4 4:00 PMEDT