NSOM challenge
ATPG what can I say? My favorite offshore ngas driller got drilled. They said production had hit their exit goal of 300mmcfe/d in December. Current production has dropped to 260mmcfe/d. Their Q4 will still be a record and Q1 will be better. Gomez, their predominantly oil platform in the GOM is performing better than predicted so oil revs will be good. The North Sea field is underperforming by 40mmcfe/d. If production stays near 260mmcfe/d, ATPG's 2008 results will be less but it's still undervalued. If they hit $6eps, they are selling for a 7 p/e for a driller that is growing production by 60% and plans to exit 2008 at 450mmcfe. If they are still short the 40mmcfe, they will still be at 410mmcfe in 12/08 after averaging 130mmcfe for Q1 06. Huge growth.
CAGC.ob Organic fertilizer in China. Q3 results show Revs +52%, Net inc +130% to 2.6 million. Just started distributing thru Sinochem Fertilizer, the largest fertilizer distributor in China.
PMG.to 76.5% owned subsidiary of Petrobank. Operates exclusively in Colombia. Has a huge 1.5 million acre land position in Colombia to explore. Bidding on more heavy oil leases. Has the right to use THAI in Colombia. Huge growth coming in 2008 as their first two Corcel wells are producing at reduced rates due to lack of surface facilities. Increased trucking capacity coming in 9/08 and they are permitting a new pipeline to increase capacity to 40,000bpd. 24 well drilling program in 2008 is the most active in Colombia.
POE.v Drilling in Thailand. Has hit several wells that are capable of 10,000bpd. The company was grown huge amounts in 2007 and has more growth ahead. They are constrained by trucking capacity. More tankers are coming in a few weeks and the company will have capacity to ship 10,000bpd in March, which is the current production ability. They are actively drilling but hit a dry hole recently that hurt the share price. They have many targets so this should not hold them back from rapidly increasing production to the 20,000bpd area.
PRC tiny 400bpd producer with three main areas of emphasis. They bought a big old field in North Dakota in the Williston Basin. There are over 100 wells producing in several fields. They produce 400bpd gross with PRC WI averaging 43%. They are waterflooding the fields to effect secondary recovery. This is a tried and true method that should increase production 7 to 10 times from now until 2011, when production will peak at 2500bpd. PRC also has a 10% interest in the Permian Basin in Texas. Their partner has one drill working fulltime drilling. The JV hit 13/13 in 2007. There is a chance of a second drill to increase the number of wells drilled in 08. The field has 126 sites so there is several years of drilling left.
PRC is guiding for 1000bpd exit rate for 2008.
TXCO is drilling in several locations. They have wells in the Maverick Basin of Texas going after the Glen Rose formation. They have budgeted 35 wells including 10 re entries in 08. TXCO has 50%WI. TXCO also has wells in Oklahoma and Texas scheduled. TXCO also has the largest tar sand field in the US located in Texas. They have started two different pilot programs to produce bitumen from two different fields. They are using two different methods to extract the bitumen. They are investigating different alternatives to developing the tar sand deposits. They had hoped to produce 10,000bpd from the pilot.
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
