Kodiak Oil & Gas Corp. Message Board

All the Heitz Buda wells drilled by Dan Hughes have been very profitable returning all capital in well under one year. The Heitz 3H well is the only one to do over 30,000 in its first month. Expecting that big a number could trick some investors into thinking 20,000 barrels in the first month is not a good number. It would be a great number. Unlike fracked shale wells these wells keep flowing at high rates for months until they run out of steam and then have a rapid decline.

Typical ROYL. They announce a well that will net them $1,400 per day and they gain $5 million in marketcap. USEG is about to announce a wll that will net them over $20,000 per day.

USEG should move more than Crimson when they make the announcement. With the merger the Crimson shareholder is diluted by 75% by the Contango shareholders to the Buda announcement. USEG was already more levered to the Buda than Crimson before the merger. Even though USEG has a 30% working interest to Crimson's 50% working interest, USEG has fewer shares and a lot less debt.

OK, Crimson is going to wait to report 30 day data. Since Keith had the 24 hr IP data on the conference call but wanted to wait for Crimson to release it 30 days will be up by June 12. We could finally get the news late next week. We have been on the Dan Hughes discovery since spring of 2012 and finally we find out about a USEG well.

If Crimson doesn't release the news soon they are going to do more damage to themselves with the merger lawsuits. They agreed to merge April 30 after they already had touched pay dirt in the Buda. Hiding the excellent news isn't going to help them.

While not conceding the definition of one to two weeks, it is obvious if we don't get news today then it will have been three weeks on Monday since news was promised.

Congrats ROYL shareholders.

Crimson has a slide show that says post merger they will run a full time rig in the Buda.

This thread is already a dispute about what two weeks means so I guess it can turn into a dispute about what commitment means.

In my mind, two weeks is less than three weeks. If we get news this week it's less than three weeks.

Excellent question, uncertain of the answer. The Heitz 3H well drilled by Dan Hughes did 38K in the first month. But we don't know when they reached the Buda in April; the 10th or the 28th? I would say anything over 25,000 barrels of oil in the first 30 full days of production is a grand slam.

That would mean USEG's 2014 revenue would be more than the current enterprise value of the whole company.

The Buda well has been flowing oil for 2 to 4 weeks. Crimson announced running a fulltime rig after they reached the Buda and saw how much oil was flowing. Here is a prediction: by November Yahoo will have more than one analyst with a $50 million plus 2014 revenue forecast and there could be an analyst predicting over $60 million in revenue.

The market is asleep as to how much oil is going to come from those joint-venture Buda wells with Crimson.

Anything written in January had to be based on third quarter 2012 numbers. They didn't report fourth quarter numbers until March.

But your source didn't say the buyer backed out. While May 6 was the projected closing date, it is only May 10 and something could still happen.

Other than being an embarrassment the apartments do have positive cashflow and are not a drain on corporate cash resources.

Thanks for the offer but I'll pass. I didn't lose that much money because the merger wasn't that far off my cost basis. Too much time for too little return.

There are bound to be longer term holders way under water ready to join your cause.

The stock didn't move after they sold the jet. I don't think the stock action indicates anything one way or the other on the apartments.

I think the movement is based on the good news on the Buda well and Crimson's promise to drill another early in the third quarter.