Theoretically it should not matter. In reality reverse splits are the kiss of death. Glad to know your position on this
Doing a little rough math this JV on the wells should bring over 200 million in gross revenue to Whiting in 2017 with no increase in capital expenditures.
On top of that it will increase their proven and probable reserves which will help the borrow base credit line with the banks
This is a really big deal
Whitings presentation today indicates a well cost of 6.8 million. a 65% buy in equals $4.42 million per well based on the presentation.
Was this addressed in today's conference call?
Going by the 6.8 million number in the presentation a JV on 44 drilled wells comes to 194 million buy in
I can read just fine. From press release
"Whiting inked a deal with an investor who will take a 50 percent interest in 44 North Dakota wells and bear 65 percent of the drilling and fracking costs.
A Whiting representative was not immediately available to comment on why the investor was not named.
Whiting said it has already received $30.7 million as part of the agreement, and as such will continue to run two drilling rigs and add a fracking crew in North Dakota, the second-largest U.S. oil producing state."
Get a clue. Investor is paying 65% of well cost for a 50% interest in 44 wells. Convertibles have nothing to do with it. Where did you come up with that 44 million number. Pull it out of thin air????
Being willing to begin completion operations immediately is a very strong statement that they are confident of making a profit on this investment. To make that profit there is an expressed belief that oil prices are either stable or rising
Just laying out there what is already known. I think it clear with this investment Whiting is a survivor.
Whiting has an investor buying into 44 Wells because of these great results they can produce. Still very strong Wells alone don't make for this investment. Someone is committing big money based on belief oil is headed up. They expect a nice profit
Rockpile was doing work for Whiting. perhaps whiting will throw them the work. It could be a life saver
This will bode well going forward
The P Earl Rennerfeldt 154-99-2-3-27-2H had an average 60-day production rate of 1,501 BOE/d, 232% better than the average rate for the four offset wells drilled by Kodiak using older technology. The P Earl Rennerfeldt 154-99-2-3-10-15H3 had an average 60-day production rate of 904 BOE/d, 124% better than the average rate for the six offset wells drilled by Kodiak using older technology. Whiting has 1,777 potential gross drilling locations in Williams County.
Halliburton cited reduced activity in Mexico, Brazil and Colombia, and said it decided during the quarter "to begin curtailing activity in Venezuela."
Halliburton also reported an uptick in demand for unconventional technology in Argentina, home to the Vaca Muerta shale formation.
Saudi domestic oil consumption makes a big jump in the summer as they need the oil to run the power plants to keep the country cool running all those air conditioners.. This is a large number, perhaps as much as 1,000,000 bbl per day but try to find anything on it. Everything regarding Saudi domestic oil use seems to have been removed from the internet or at least been made much more difficult to find.
With Saudi production running full out any increase in domestic consumption is 1 less barrel that gets exported.
Trend continues up for oil
Oil is rebounding nicely since the report was published this morning. Combine with API report late yesterday that showed a nice drop in Cushing OK oil inventory and the trend to reduce the over supply is moving ahead
High Import levels remain an issue to the inventory build. Total petroleum product inventory had a slight decrease last week
"U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week
ending April 15, 2016, 163,000 barrels per day more than the previous week’s average.
Refineries operated at 89.4% of their operable capacity last week. Gasoline production
increased last week, averaging over 9.7 million barrels per day. Distillate fuel production
decreased last week, averaging over 4.7 million barrels per day.
U.S. crude oil imports averaged 8.2 million barrels per day last week, up by 247,000
barrels per day from the previous week. Over the last four weeks, crude oil imports
averaged 7.8 million barrels per day, 2.1% above the same four-week period last year.
Total motor gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged 791,000 barrels per day. Distillate fuel imports averaged
90,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) increased by 2.1 million barrels from the previous week. At 538.6 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories decreased by 0.1 million barrels last week, but are well
above the upper limit of the average range. Finished gasoline inventories increased while
blending components inventories decreased last week. Distillate fuel inventories
decreased by 3.6 million barrels last week but are well above the upper limit of the
average range for this time of year. Propane/propylene inventories rose 1.2 million
barrels last week and are above the upper limit of the average range. Total commercial
petroleum inventories decreased by 0.4 million barrels last week.