Larry, thanks for responding. You're a gentleman and a scholar. Yes, lucky and right at $1.50, but how about at 40 centavos? We shall see. GL to you.
Given the costs and challenges of the 30,000 psi equipment for Lafitte, it appears to me that FCX may be making the right business decision (but what do I know). In effect FCX is also saying that they have lots of prospects, including those on shore, and why should they continue this phase of the science project (to use Larry's term).
Those are the risks of a royalty trust. Forget Calico Jack (for now). TISDZ is still worth more than half a buck per unit for the BBE and BBW prospects imho.
". . . leases acquired prior to Dec. 5, 2017 on the same lease blocks of Lafitte and Morgan will be part of the subject royalty interests," means that they would be s.t. the GULTU royalties, not TISDZ.
Per the 10-Q: "The Lafitte ultra-deep exploration well, which is located on Eugene Island Block 223 in 140 feet of water, was drilled to a total depth of 34,162 feet in March 2012. Exploration results from the well indicate the presence of hydrocarbons below the salt weld in geologic formations including Middle/Lower Miocene, Frio, Upper Eocene, and Sparta carbonate. MMR's lease rights to Eugene Island Block 223 were scheduled to expire on October 8, 2012. Prior to the lease expiration, MMR submitted its initial development plans to complete and test the Jackson/Yegua sands in the upper Eocene for Lafitte to the BSEE. This completion would have required the development of 30,000 psi equipment and the design development and procurement of such equipment would require an extended period of time leading up to the initiation of completion activities. For business reasons, in June 2013 MMR withdrew its Suspension of Production application requesting no further action from BSEE. As a result, MMR's interest in the Lafitte well and related leases effectively expired."
On the plus side, there's better news on Blackbeard East. Read the Q yourselves for the current picture on other leases too.
This is according to the 10-Q filed by GULTU today. That's a bummer.
There was a discussion recently on the IV board re a deep prospect named "Archtop," located on the fee simple marshlands owned by BLMC (see below). Anybody happen to know anything about this?
"Deep Archtop. Upon completing the development potential of all sands in the Deep Archtop prospect, the Company [TMR, I think] began its marketing effort in mid-January 2007. Once completed, it began to prepare the project engineering design for drilling and estimated costs. The project is designed to test a Jurassic Cotton Valley four-way closure in the Biloxi Marshlands area of St. Bernard Parish Louisiana. This 30,000 foot prospect has over 14,400 acres of closure, imaged by 3-D seismic and offers reserve potential of up to 5 trillion cubic feet of gas. The company will spend the coming year in pre-drill work, followed by 300-plus days to drill the well. The projected spud date for the well is early second quarter 2008 and will cost an estimated $60 million to drill. The shallow marshlands water location provides the potential for significant savings in drilling the test well and post development infrastructure. Similarly sized offshore projects typically cost much more and require longer periods of time to construct the necessary pipelines and production facilities. Meridian owns production facilities and pipelines in the immediate area. Meridian intends to retain and pay it share of approximately 20% working interest to the casing point in this well."
I agree. Own all three in my motley acct. Ordered a certificate for a few units of TISDZ so I can get the financials sooner. Planning to own TISDZ and BLMC for the duration. May trade out of GULTU if it gets too heated. Sure would love to see some production to ratify my thinking on all this.
DowJones published this on 6/11. Since Exelon is a major backer of Usec, I'm wondering what its pullback may mean. Somebody should stand up at the annual meeting, which I cannot attend this year, and ask.
Exelon Scraps Nuclear Plant Expansions, Takes $100 Million Charge
Dow Jones By Cassandra Sweet
Exelon Corp. (EXC) said Tuesday that it has abandoned plans to expand production at two U.S. nuclear power plants, amid low power prices and tepid electricity demand growth.
Exelon said its decision not to proceed with construction at the La Salle nuclear power plant in Illinois and the Limerick nuclear plant in Pennsylvania would lead the company to take a $100 million charge in the second quarter.
Exelon, a major power generator and the largest U.S. operator of nuclear power plants, blamed "market conditions" for the company's decision to cancel the projects, according to a document filed with the Securities and Exchange Commission.
About 5.6 million GULTU units changed hands today with a value of about $12 million. On the other hand, only 912 units of TISDZ traded, worth about $500.
"You have one of the smallest minds ever- next to your old bud Headwind. I suspect you also both have serious personality disorders- or worse."
These words (from an earlier post) are and example of one of the left's favorite tools: ridicule.
When they can't win on the facts, or the science, or the law, their first resort is to ridicule anybody who questions their wisdom.
You know where they learned it, and you know who is the best practioner.
And they think they're such high-minded liberal thinkers. Gimme a break!
Moose, here in the States we have a saying, "Bite the hand that feeds you."
Works every time. Or so Usec's management thinks.
Now that GULTU is trading on its own, it should be somewhat easier to compare the value of the two trusts and take a stab at which is over- or under-priced relative to the other. After discounting all known factors on both, they should eventually trade pretty efficiently relative to each other. And I think that gives a big boost to TISDZ since it will have a more actively traded proxy for itself.
If I were guessing (and that's all it is for me at this point), I would guess that TISDZ is cheap and GULTU is dear relative to each other. Hopefully they're both cheap relative to the overall market since I own both is my paltry account.