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Patch International Inc. Announces Second Canadian Oil Sands Acquisition
Friday December 22, 8:00 am ET
CALGARY, Dec. 22 /PRNewswire-FirstCall/ - Patch International Inc. ("Patch" or the "Corporation") (OTCBB: PTCH, Frankfurt: PQGB) announces that it has entered into a letter agreement dated December 21, 2006 (the "Agreement"), for the acquisition of 1289307 Alberta Ltd. ("Holdco"), a private corporation incorporated under the laws of Alberta (the "Transaction").
ADVERTISEMENT
Patch intends to acquire, directly or indirectly, 100% of the shares of Holdco, such that Holdco would be a wholly-owned subsidiary of Patch. The acquisition will be in consideration for an aggregate of 500,000 common shares in the capital of Patch at a deemed price of (U.S.) $2.00 per share for an aggregate deemed consideration of approximately $1,000,000, pursuant to the terms of the Agreement, subject to completion of satisfactory due diligence, a definitive share exchange agreement and receipt of applicable regulatory approvals. In addition, Patch will assume the debt of Holdco in the principal amount of (U.S.) $1,000,000.
All geological information provided in this press release, including all information on Holdco's property has been provided by management of Holdco and has not been independently verified by management of Patch.
Assets of Holdco
----------------
Holdco has not conducted operations to date except for acquiring an interest in a farmout agreement (the "Farmout Agreement") dated December 12, 2006 between 1286664 Alberta Ltd. and Bounty Developments Ltd. ("Bounty") which provides Holdco with the right to earn up to a 75% working interest in 18 square miles of land located in Townships 91-92, Range 2 W4M (the "Firebag Oil Sands Project"), in the Fort McMurray area of central Alberta, Canada.
The Firebag Oil Sands Project consists of 18 contiguous sections of 100% owned lands in Townships 91-92 which is approximately 20 miles east of Fort McMurray, representing 11,520 acres. The leases on these lands are valid for 15 years. The productive zone is the McMurray Formation, comprised primarily of fluvial and estuarine channel sandstones which form the main reservoir deposits. The Firebag region is active with "SAGD" (steam assisted gravity drainage) projects in various states of development.
The first stage of the project is to offset existing oil sand pay on the land by drilling a number of vertical test wells, and shooting seismic (3D and 2D). The objective is to delineate the size and number of oil sands for future SAGD development.
Pursuant to the terms of the Farmout Agreement, Holdco must complete the following payments and work program to earn up to a 75% working interest in the Firebag Oil Sands Project:
1. Holdco shall earn a 25% undivided working interest in the Firebag Oil
Sands Project subject to the following:
a) a payment to Bounty in the amount of (Cdn.) $1,000,000 on or
before December 18, 2006;
b) a payment to Bounty in the amount of (Cdn.) $1,000,000 on or
before December 22, 2006;
c) a payment to Bounty in the amount of (Cdn.) $3,100,000 on or
before January 15, 2007; and
d) Holdco shall reimburse Bounty for all expenditures made or
liabilities incurred by Bounty to such date in maintaining,
permits, approvals and equipment commitments, and in obtaining
land, engineering, geological, geophysical and other services
reasonably required to allow the first year evaluation wells to be
drilled and the seismic program to be completed;
2. Upon Holdco earning its initial 25% undivided working interest in the
Firebag Oil Sands Project, Holdco shall earn an additional 25%
undivided working interest (an aggregate 50% working interest) in the
Firebag Oil Sands Project subject to spudding 8 evaluation wells at
mutually agreeable locations on the properties and the completion of
a 2D seismic program on the properties at a minimum cost of (Cdn.)
$1,200,000 but not to exceed (Cdn.) $1,500,000 on or before March 31,
2007 (collectively the "1st Year Wells and Seismic"); and
3. Upon Holdco earning its initial 50% undivided working interest in the
Firebag Oil Sands Project, Holdco shall earn an additional 25%
individual working interest (an aggregate 75% working interest) in
the Firebag Oil Sands Project, subject to the following:
a) a payment to Bounty in the amount of (Cdn.) $2,500,000 on or
before April 1, 2007; and
b) on or before April 1, 2008, spudding 4 evaluation wells at
mutually agreeable locations on the properties and the completion
of a 2D seismic program on the properties at a minimum cost of
(Cdn.) $550,000 but not to exceed (Cdn.) $650,000 on or before
March 31, 2008.
The leases on these lands are valid for 15 years. The productive zone is the McMurray Formation, comprised primarily of fluvial and estuarine channel sandstones which form the main reservoir deposits. The Firebag region is active with "SAGD" (steam assisted gravity drainage) projects in various stages of development.
The first stage of the project is to offset existing oil sand pay on the lands by drilling a number of vertical test wells, and shooting seismic (3D and 2D). The objective is to delineate the reservoir size and recoverable reserves for the 18 sections for the lease holdings for future SAGD development. It is expected that the drilling of the vertical test wells will commence in January 2007. The capital budget for the 1st Year Wells and Seismic is estimated to be (U.S.) $5,000,000 and this capital will be made possible through current working capital of Holdco and the Corporation and the completion of additional financings.
Conditions of Closing
---------------------
The closing of the Transaction is subject to the following conditions, among others:
a) the completion of satisfactory due diligence by Patch and Holdco;
b) the preparation of a satisfactory engineering evaluation;
c) the entering into a formal share exchange agreement and related
documentation, between Patch and Holdco in form and content
satisfactory to each of them;
d) any regulatory, shareholder, director or other approvals as may be
required.
It is intended that the offer to purchase Holdco will be made by way of exempt take-over bid in the Province of Alberta and such other jurisdictions in which holders of the Holdco common shares reside where such bid may lawfully be made; provided however, that final determination of the structure will be based on the securities and tax aspects of the Transaction and will be made in the most legally and tax effective manner as agreed to by the parties.
Completion of the transaction is subject to a number of conditions. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the share exchange agreement, management information circular or take-over-bid circular to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.
No regulatory authority has passed upon the merits of the proposed transaction and has not approved nor disapproved the contents of this press release.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Patch's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. For further information investors should review the Corporation's filings that are available at www.edgar.com.
CONTACT: Michael S. Vandale, President and CEO, Patch International Inc., Email: mvandale@patchenergy.com; Investor Relations, Patch International Inc., (888) 864-7372, Email: info@patchinternational.com
Nice powerpoint on little co hunting elephants---gas, NE B.C.----http://www.wyndevelopments.ca/press/news06/06-10presentation.pdf
HonestInjun...I see...thanks, I will...been following Pan but have not pulled the trigger on it yet...GLTY
Gateway--feel free to copy and paste any of my posts---I'm only allowed a limited number of posts, due to my limited patience with certain types~~!
Here's another Canadian play I've been in awhile, I know the guys and feel sask today is about what ab was in the 70's---this is an 'either or play'---either it'll work very, very good or it won't atall atall---
Ahead of schedule and under budget--how many times do you hear that?
Press Release Source: PanTerra Resource Corp.
PanTerra Completes 2006 Drilling Program Under Budget; Initiates Third Party Evaluation of its 1.1-million Acres (550,000 net) in Saskatchewan
Tuesday December 5, 12:06 pm ET
PAN-TSXV
CALGARY, Dec. 5 /CNW/ - PanTerra Resource Corp. ("the Company") is pleased to announce that it has completed its 2006 drilling program and as a result of excellent gas indications, has cased a total of 39 wells which came in 20% under budget. The Company has contracted an independent third party to value its land holdings consisting of 1.1 million acres (550,000 net) in Saskatchewan. The Company is also awaiting the results of its core analyses, which will determine the start of its completion program targeted to begin early in 2007. The drilling and casing of these 39 wells contributed to the Company's ability to meet and exceed its expenditure requirements for all three of its Exploration Permits.
2006 Overview:
--------------
Shell Lake:
In February 2006, PanTerra drilled and cased 2 wells in this area. Cased-hole logs were run on the wells in October and are presently being analyzed. Further work will be done on these wells in the New Year now that the drilling programs at Moose Jaw, Foam Lake and WhiteHill Lakes have been completed.
Foam Lake:
The Company drilled and cased 16 wells. Nine cores were cut and sent to a specialty lab in the U.S.A. for analyses, the results of which are expected before year end. Preliminary gas analysis from the Foam Lake cores indicate high methane (in excess of 96%) contents. The cased-hole logging program has begun and should be completed by mid-December. PanTerra will begin its completion program at Foam Lake in the New Year.
Moose Jaw:
PanTerra's Moose Jaw drilling program was completed by mid-November. All 16 wells showed excellent gas indications and were cased. Three wells were extensively cored with the samples sent to a lab in the U.S.A. for analyses. The cased-hole logging program will be completed by the middle of December. The completion program for Moose Jaw is expected to commence early in the New Year, once the results of the core and other analyses have been evaluated.
WhiteHill Lakes:
The Company as 'operator' drilled and cased five wells and was 'rig-released' by November 30th. One well was extensively cored, and the cores sent to the U.S.A. for analyses. Mooncor Energy Inc. paid 100% of the initial costs of the five well program and will pay 100% of the costs of the core analyses and completion costs to earn a 50% (25% net to PAN) interest in the property. Completion of these wells is expected to commence early in 2007.
PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas. The Company holds three permits and one license for a total of 1.1-million acres (550,000 net) on four properties in Saskatchewan. PanTerra trades on the TSX Venture Exchange under the symbol "PAN". Further information can be found at www.panterraresource.com.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
For further information
Fred P. Rumak, P.Geol., President and C.E.O. at (403) 261-5900, Email to: fred@panterraresource.com
cex--Terry Brown---ran to 3 bucks on frankfurt listing--got ahead of itself---Terry is oil patch engineer and works for a living, don't take living outa co--this play is in old oilfield, infrastructure in place, hi demand area--ready market-----
Terry told me yrs ago he'd play cautious and take little pieces of jv's and build co, till he saw something that would work, then he'd go for it----he has jv'd out 75% of eastern methane play to stealth--who have done some VERY interesting horizontals and completions, by the way--and cex is going it alone on stony cree---
Very good news, from my point of view. Opinions? (posted by sandfur on s.h.)
December 1, 2006, (Calgary, Alberta) Contact Exploration Inc. (TSX-V: CEX) is pleased to provide an update on its 30-well retesting and work over program for the Stoney Creek field.
To date, Contact has completed initial retesting of 24 gas wells with the eight most productive wells having a combined deliverability in excess of 1mmcfd. Pressure surveys and electric logs have been run on the majority of the wells. With this information we will be able to determine the reserve potential from the existing zones and identify zones for future recompletion potential.
Additional gas wells may be tested over the next year to evaluate their potential. Contact’s objective is to establish a long term strategy to market this gas through a local marketing network.
In addition, Contact has swab tested three old oil wells which produced oil inflow rates from 10-25 bopd. Since these wells are already in place, minimal capital is required to put them on production.
These wells will be production tested over the next 3-6 months. Based on the stabilized production rates, as many as 12 more old oil wells could be retested and placed on production. Pressure surveys taken in the oil producing region of the field have shown that the average reservoir pressure is twice that which was previously reported. This higher reservoir pressure will positively impact our ability to recover additional oil from the field.
Contact is aggressively developing the Stoney Creek field to deliver incremental production from this well known field and to revitalize the field for commercial production.
We anticipate oil production revenue by year-end.
In addition to the work-over program, other exploration activity in the Stoney Creek area which is currently underway includes the completion and production of two horizontal wells drilled within the Stoney Creek Field, a three well re-entry program which includes a cased gas well that was shut in with very encouraging initial test results and the interpretation of a recently completed 100km seismic program designed to identify untested zones south of the South Stoney Creek field. To date, Contact has invested in excess of $8 million in the Stoney Creek field and surrounding area including seismic, drilling, completions,
re-testing and equipping.
Contact will continue to report further results upon the completion of further testing. While it is too early to project long-term production rates from the work-over program, Contact is very
pleased with the initial test results to date.
Sounds like they are turning the corner... can you post that on the Oil & Gas Pipeline board... good info and thanks
Avery up 30% on 3X volumne. Another one of them deals where 'location, location, location' is so important-( I also really like uranium plays with deposits in U.S.--feel there will be very large premium on them)-Oz has very little hydrocarbons.
I felt all along this play was very undervalued---which is why I posted it here----
"Avery Resources Announces Director Appointment and Filing of 2006 Second Quarter Results
Tuesday November 28, 5:49 pm ET
CALGARY, Nov. 28 /CNW/ - Avery Resources Inc. (TSXV:ARY) (the "Corporation" or "Avery") today announced that Ms. Judith Stripling of Calgary, Alberta has been appointed to the Board of Directors of the Corporation (the "Board"). Ms. Stripling fills the vacancy created by the recent resignation of Mr. Bradley Johnson from the Board.
"We look forward to the addition of Ms. Stripling's financial acumen to the Board as we continue to grow our international hydrocarbon exploration and production activities," said David Little, Chairman and CEO of Avery.
Judith Stripling is Executive Vice President and Chief Financial Officer of Midnight Oil Exploration Ltd., a junior oil and gas exploration company located in Calgary, Alberta, Canada. Prior thereto, Ms. Stripling was cofounder and Vice President, Finance and Chief Financial Officer of Midnight Oil & Gas Ltd., a predecessor of Daylight Energy Trust which spun out Midnight Oil Exploration Ltd. Before co-founding Midnight Oil and Gas, Ms. Stripling was Vice President, Finance and Chief Financial Officer of Ulster Petroleums Ltd., an intermediate oil and gas exploration company. Ms. Stripling is a Chartered Accountant and a current member of Financial Executives International. Ms. Stripling will serve on Avery's Audit Committee.
As well, the Corporation announced that the financial results for the second quarter ended September 30, 2006 have been filed. For a complete copy of the results please visit www.sedar.com or the Corporation's website at www.averyresources.com.
Highlights of the second quarter ended September 30, 2006 include:
- Earnings of $655,762 or $0.01 per share compared to a loss of
$(313,148) or $(0.02) per share in the quarter ended September 30,
2005.
- Funds flow from operations of $969,258 compared to $(250,584) in the
same period in 2005.
About Avery
Avery Resources is an international hydrocarbon exploration and production company based in Calgary, Alberta. The Company is committed to growing shareholder value through international acquisitions and exploration in countries that provide significant exploration upside coupled with favorable fiscal and legal systems. Avery's primary interest is in Australia, where the Company is building a significant presence through production, partnerships, drilling and acquisitions. Avery is focusing its current drilling activity in the Cooper Basin region of Australia.
Disclaimers
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information
Avery Resources Inc., David Little, Chairman & CEO
Richard Edgar, President, (403) 205-2526, Email: info@averyresources.com, Website: www.averyresources.com
Iradesso Communications Corp., Ken Wetherell, Investor Relations, (403) 503-0144 x224, Email: contact@iradesso.com
Yeah, that news was not good for them IMO
OCL P&A Yemen well---could maybe make quick money=short & cover, and get it done this week---(don'tcha just hate suspense?)
Oracle Energy Corp.: Announcement
11/18/2006
VANCOUVER, BRITISH COLUMBIA, Nov 18, 2006 (CCNMatthews via COMTEX News Network) --
Oracle Energy Corp. (the "Company"), (TSX VENTURE:OCL)(FWB:O2E) has been notified by project operator Yemen Mayfair Petroleum Corp. that the Fatima-1 well, Block 22, Yemen, was drilled to a total depth of 2359 metres. After testing, the well was plugged and abandoned on November 18th, 2006.
Oracle Energy Corp. is a Canadian - based international oil and gas company with interests in Yemen, Romania, Italy and Peru. Management is actively pursuing oil and gas projects in other areas of the world to be added to the company's diverse portfolio. Oracle Energy is in a strong cash position for potential acquisitions with approximately $2.4 million in the treasury.
Neat picture, flarin' gas---
"Not sure if this picture is even from this well and definitly 'not sure' about this guys 'I heard'-----but it's a neat picture:
http://www.stockhouse.ca/bullboards/viewmessage.asp?no=13600069&t=0&all=0&TableID=0
Sprott---
AN INTERVIEW WITH ERIC SPROTT
OF SPROTT ASSET MANAGEMENT
(From November 10, 2006)
David Pescod: One of the big questions out West here, is
with income trusts almost as good as gone, you’ve astutely
avoided that sector. And it might destroy some of the liquidity
in the oil and gas sector. Any thoughts on that?
Eric Sprott: I think it will affect liquidity. One of the things I
was always a little bit skeptical of with income trusts and the
majority of trusts (if you will) are that you start out with a
company that’s worth “X” and you dress it up in income
trusts clothing and it’s worth “1.5 X”. I was always a little
skeptical of that and that’s pretty tough to create that value
into believing it’s sustainable and even if you do change it
from “X” to “1.5 X”, you probably don’t have the growth characteristics
that you might have had if you still traded like “X”
because now you are paying out all your cash flows. So I
haven’t been a big believer in trusts lately and I fully believe
the whole unwinding process that we have to go through here
(you have to go from 1.5 X back down to 1 X).
D.P: For following the oil and gas sector, we’ve certainly
learned in the last year that natural gas prices are almost totally
changed by weather forecasts. The gas sector has been
hurt. What are your thoughts as we look forward to next
year?
E.S: We are very keen on natural gas, because I see what’s
going on, out in the field. And what I mean by that is we have
rig counts in Canada that are way down, we’ve got a number
of major producers that have said they are going to cut back
on their Cap Ex. A very usual thing with the natural gas market
is that the production rates of the first year are so important
or the corollary of that is that the reduction after the first
year is so important. If all of a sudden you stop drilling wells,
your production is going to fall. In fact, I saw a piece by First
Energy and it said that if we went back to let’s say drilling the
same number of wells we drilled in 2000 in North America,
that gas production would fall by 30%! Because the first
years production becomes so important, so you are on this
tread mill where you have to keep drilling just to stay still. I
use the analogy in Canada that we drill 20% more wells, we
spend 20% more per well, but we never get any production
increase.
That’s a formula for disaster, sooner or later because
you can’t keep spending 40% more on something
every year and not get more output. I think we are
going to see a decline in gas production which of
course then affects our exports, which then will help
to resolve this supposed surplus of natural gas that
we have in storage.
D.P: What would your crystal ball say for oil and gas
prices for Christmas of 2007?
E.S: I would just say higher. I would guess that gas
has a little more in it than the oil does, simply because
gas got beaten up here and maybe the whole
Amaranth thing over-extended the decline. Plus of
course, we had an incredibly mild winter last year. I
always hope for just normal weather. If we get normal
weather then these products, these hydrocarbon
products will go where they all should go. We are
upbeat on hydocarbons, we think we are at peak production
here for oil in the world, so I suspect that
prices will be higher and do I think oil could be $80 to
$100? Sure it could be, by December of 2007. Could
gas be in double digit numbers again? Yes, I certainly
would think so.
D.P: Your Fund has been one of the top performing
funds in Canada if not the world over the last while,
mainly because of your faith in commodities
(uranium, gold and the like). If you had to pick your
favorite commodities right now, which would they be?
E.S: Obviously, we’ve been very well rewarded with
gold and silver over the last six years. We still love
the precious metal but for totally different reasons
than we would like for example, uranium and gas and
oil. There’s hardly any commodity that we are not
involved in. The one I can think of is aluminum, but
most of the metals we look at pretty positively on. We
also think we might be in a bit of a Malthusian situation
in the world where we have all these new consumers
coming into the world who have more money
(China and India) and the resources are limited. I
would think that a lot of metals will do well here. I
think everything will do well.
D.P: Regarding this boom, the question is, how much
longer it can go. Jimmy Rogers is figuring about 15
years. What would be your estimate?
E.S: That’s a tough one. I define the world into two
parts now. There’s North America, which is going to
be in downtrend for sure. I just see the U.S. economy
slowing down remarkably. If you look at what’s happening
with housing and autos, even on the active
retail level, it really is slowing down.
Delta Petroleum
www.deltapetro.com
Corridor Resources
www.corridor.ns.ca
Falcon Oil & Gas
www.falconoilandgas.com
Whereas the rest of the world seems to be going to its own
beat here and of course its own beat in the case of many countries
is a very strong increase in GDP, whether it’s Russia or
South American countries, India or China – there’s a lot of
growth going on. I think the trend will continue until there is
some sort of collapse that goes on in the world, which we
don’t foresee. We see a problem in the U.S., but I think the
world might be able to deal with it and take it in stride now.
D.P: Of your picks in the last interview we did, Delta Petroleum
is up almost 66% in just a few months. We are very appreciative
of that, but there hasn’t been a lot of news out on
the company.
E.S: There’s a lot of chatter going on if one looks at some of
the chat lines here. They are involved in three major hydrocarbon
plays. The one that we invested in initially was for the
Columbia River Basin in Washington. Encana has completed
the first well, they are currently testing it and the beauty of the
basin-centered gas plays is that if you hit on the first well, you
can almost imagine that you can hit on the whole play. It’s just
gas that’s in rocks, so it’s called an “unconventional play” and
we will be able to jump to some conclusions very quickly as to
how effective it could be for everyone. Another play is what
they call the Paradox Basin and where they announced a blow
out because the downhole pressure was too high. There was
no damage fortunately, but it looks like they might have a
pretty significant gas discovery. In the third play they are just
starting to drill called the Utah Hingeline and I believe they
spudded their well down there and I think it could drill in something
like 45 days. So we could have a lot of company-making
news come out in the next three months.
D.P: Another gas story that has surprised some people that
you’ve done quite well on and we are glad we followed it is
Corridor. Natural gas in New Brunswick of all things! Pretty
exciting well starting in about a week…
E.S: Most people think that all the oil and gas is in Western
Canada, but there has been some significant plays all along
the East Coast. Talisman has big operations in New York State
and then you move up into New Brunswick and Corridor has
some very interesting properties there. They hope to bring a
new pipeline I believe in early 2007. It’s been a great win for us
and I think there is a lot more gas to discover. Some have suggested
they might have recoverable gas in place of around 1
Trillion cubic feet. In today’s world that is worth about $1 billion.
With that kind of reserve base it would allow lots of upside
from where it is. They are drilling a deeper well to a new
zone called the Dawson Settlement. They could get 5 T’s of
gas. Now that is huge, but these are things that can dramatically
change the perception of a company with one major success.
D.P: Another story that hasn’t gone quite straight forward has
been Falcon Oil and Gas, half a billion shares outstanding and not
one well completed yet.
E.S: They completed the well but they haven’t tested the well yet
and I gather they should begin testing probably soon, I believe the
end of November. So we are not that far away. From all reports
that we have been able to get, it looks like they should have some
dynamite wells there. It’s a new company and people shouldn’t
rush into believing all the stories, particularly because there are
no official results, but I think when the official results come out,
people are going to stand back and be (I hope) very impressed by
the test results. Again, there were some estimates done by a
group suggesting that the recoverable could be something like 40
Trillion cubic feet of gas. That would be worth a lot of money to
the shareholders of Falcon Oil and Gas.
D.P: Now this is a bit of an awkward question, but it tends to focus
on things…if you could buy only one stock today, what would
it be?
E.S: I would probably buy Delta Petroleum. I just think there is so
much upside here. I am not buying the stock today, because I
bought it a couple of years ago, and I’m happily long, but I do believe
they have three world-class plays going on and any one of
them, could cause the share value to change quite dramatically.
D.P: Are there any other favorite stories you’ve got that you
should mention?
E.S: I can tell you that we are looking into some of these strategic
metals like molybdenum and tungsten and a few others, but there
is nothing I can suggest that is new and exciting there yet.
D.P: Where do you think the stock market is going as a result of
the recent election?
E.S: I’ve been a bear for a long time in the U.S. market and I
would think with the Republicans having lost the election and
watching what the dollar is doing here (it’s almost literally in free
fall these last couple of days) if that continues, we should all be
monitoring that dollar very carefully here. We had somebody
from the Central Bank of China talking about diversifying out of
the U.S. dollar – well, we all can’t diversify out of it and not have it
go down a lot. So, that would be the one thing I would really be
watching – the U.S. dollar and the U.S. stocks if people lose confidence
in where they are going, we could have a bit of an issue.
D.P: That would be good for gold?
E.S: That should be good for gold, yes.
D.P: Thank you very much, Mr. Sprott!
Disclosures: EnCana Corporation: Canaccord Capital covers this stock and has a Buy rating on it. (Buy: The stock is expected to generate riskadjusted
returns of over 10% during the next 12 months.)
Canaccord has recently participated in a financing for Corridor Resources.
Deb’s Ditty:
Dawn is nature’s way of telling you to go to bed.!
Pescod on O & G
OILEXCO INC. (T-OIL) $7.04 +0.09
DELPHI ENERGY (T-DEE) $2.78 +0.07
TRICAN WELL SERVICES (T-TCW) $20.50 -0.15
SAVANNA ENERGY SVCS. (T-SVY) $17.07 -0.03
CALFRAC WELL SERVICES (T-CFW) $18.80 -0.21
ENSIGN ENERGY SERVICES (T-ESI) $18.00 -0.36
CRUDE OIL $56.26 -2.50
NATURAL GAS $7.755 -0.365
According to “Bloomberg” today, the reason for the
enormous drop in oil prices was a very slight increase in
inventory of natural gas. Mind you, this is the time of year
you would expect the first signs of winter, which of
course is happening in Edmonton where we’ve had minus
10 for weeks and ten inches of snow.
Unfortunately it matters more if you have winter in
places like Toronto, Chicago, New York and the like, and
so far it’s been warmer than normal. So supplies continue
to build and there’s ample supplies of both oil and
natural gas.
So all in all, a very ugly day for those who are bullish
on gas and oil, but we’ve got the cure for those bruised
bulls today...simply go to www.robtv.com (watch past videos,
click on Wednesday, 7:00 PM ET) and turn on Josef
Schachter’s interview from yesterday and get the soothing
tones of one who is a definite bull on things both oily
and gassy.
(Continued on next page)
Trican Well Services Savanna Energy Services
www.trican.ca www.savannaenergy.com
Oilexco Inc.
Delphi Energy
www.oilexco.com
www.delphienergy.ca
DEB’S DITTY:
I’m CANADIAN
It’s like American, but without a gun.
Disclosure: Trican Well Services, Savanna Energy Services, Ensign Energy Services and Oilexco Inc.: Canaccord Capital covers
these stocks and has a Buy rating on them. (Buy: The stock is expected to generate risk-adjusted returns of over 10% during the next 12
months.) AfriOre Limited: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear significantly
higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.)
Canaccord has recently led a financing for Oilexco Inc.
More importantly, he gives a really good look at
such companies as Oilexco, which was his top pick for
the show, but also takes a look at some of the gassy
stocks such as Delphi Energy and explains the potential
leverage that they might deliver, should natural gas
ever decide to get up and at it.
Meanwhile, there is a sector that is definitely being
hurt over the last few months and that’s the oil and gas
drilling and service sector. It’s hard to remember that
last winter, you couldn’t get a drilling rig for no matter
what you were willing to pay—they were all busy and
all tied up for some time in the future. Not any more.
Here we go, once again, flirting with winter and only
40% of the rigs are currently being utilized. That’s an
almost unheard of percentage for this time of year
when it’s usually closer to 80%.
The charts around show you that the service sector
and the drilling stocks are currently starting to be affected
by that. And more importantly when you have
big companies such as Canadian Natural Resources
almost boycotting the service companies and slashing
their exploration budget by $1.5 billion (to protest both
low gas prices and high drilling costs) that’s telling you
that some drills and services might not be needed for a
while.
For those who have a bullish point of view that goes
on to say, 12 months from now instead of next Tuesday,
all of this is good as it suggests that with the big
cut backs in exploration and the huge initial depletion
rates on new wells these days, that should set us up
for another bull cycle for gas if we have patience.
But either way, in the short term we know we have
ample supplies of oil and gas and it’s going to be dependant
upon winter.
More confusion on trusts:
From Globe and Mail---
Breaking News from The Globe and Mail
Trusts worried over new crackdown
SINCLAIR STEWART, BOYD ERMAN AND STEVEN CHASE
Thursday, November 16, 2006
TORONTO AND OTTAWA — The battered income trust sector is bracing for a potential crackdown on its ability to finance acquisitions by selling units, a move that could strangle growth and force many trusts to convert to a corporate structure long before a four-year moratorium is set to expire.
Finance Department officials, under siege by lawyers and trust executives demanding clarity on the issue, are working on new rules that could be published within the next two weeks, sources said.
While the guidelines aren't complete, bureaucrats have sparked concern by suggesting that, in some cases, trusts may not be able to increase their equity base by more than 15 per cent, according to lawyers working on behalf of trusts.
In other words, if a $100-million trust wanted to raise cash for a deal, it would be limited to selling or issuing just $15-million worth of new units — a far more stringent threshold than the industry had been expecting after Ottawa's recent blockbuster move to tax trusts.
Finance has sent a so-called “comfort letter” to at least one trust that was seeking guidance on a pending financing, in which it suggested the 10- to 15-per-cent range would likely be acceptable, sources said.
This range could create uncertainty for a company like Pengrowth Energy Trust, which was contemplating a purchase of assets from ConocoPhillips that would have required it to issue units equal to about 18 per cent of the trust's market value. Pengrowth chief executive officer Jim Kinnear declined to comment on any transaction or a comfort letter, other than to say his company has had correspondence with Ottawa.
Another transaction that may be on the bubble is Shiningbank Energy Income Fund's plan to buy most of the assets of Rider Resources Ltd. in a share swap that would increase Shiningbank's outstanding units by about 27 per cent, investment bankers said.
Trusts have been seeking clarity on how much growth they can pursue ever since Finance Minister Jim Flaherty stunned investors on Halloween with a proposal to clamp down on the trust sector by hitting it with a new tax.
While he said trusts would be permitted “normal growth,” he did warn that any “undue expansion” could cause Ottawa to revisit its policy. The question for many trusts, not to mention their lawyers, is what constitutes “normal?”
In a conference call organized by Canaccord Capital Inc., lawyers from Bennett Jones LLP in Calgary told clients that they have had feedback from Ottawa about the purported 15-per-cent limit. One of the lawyers mentioned the comfort letters, and said the dialogue has not been encouraging for the sector, according to people on the call.
The federal government has not set down precise rules for trust takeovers, leaving CEOs, lawyers and investment bankers to take their best guess at how to structure deals.
Bankers say they have numerous trusts that have been left in the lurch and unable to forge ahead with acquisitions or financings.
Sources in Ottawa say the government intends to put “reasonable” rules in place that allow trusts some flexibility over the next four years.
“The department has received several enquiries relating to this section of the backgrounder, and has received submissions or has met or will be meeting with several firms, or their representatives, on this issue,” Finance spokeswoman Suzanne Prebinski said.
Mr. Flaherty's spokesman said the government plans to announce the rules in the near future, but has made no decisions and is not giving trusts advance notice of what the new rules will be.
Finance is “doing some consulting and talking to some people in the industry, but they are not sharing information and no announcement has been made,” Dan Miles said.
“I am sure there's going to be some speculation out there about how the details will unfold but no decision has been made and we are in the process of finalizing those details.”
The fear of a restriction on financing is particularly acute in the oil patch, where some trusts depend on acquisitions to replenish a declining asset base and maintain their level of cash distributions.
“To most of these royalty trusts, that is a silver-lined wooden stake in their heart — just to make sure they have you, whether you are a vampire or a werewolf,” said Trinidad Energy Services Income Trust CEO Mike Heier.
For Trinidad Energy, which is a well-driller that has grown by acquisitions, such a tight limit would mean “we can't do anything. The smallest thing we're looking at is a third our size,” Mr. Heier said.
He said that means the only option for trusts is “to unwind. There's no staying status quo. They are intent on destroying the trusts.”
But because trust CEOs like Mr. Heier are still not sure of the tax implications of changing back to a corporation — it's unclear whether unitholders have to pay capital gains tax triggered by any change, for example — they feel boxed in.
“We don't have a way out until they give us some more clarity,” he said. “It's disgusting.”
© The Globe and Mail
Stealth---another hi impact play in good market area---they've been doing some very intriguing horizontals in coal---
Cex--holds 1/4 of this play, main focus is stony creek--one of oldest fields in canada--got big position there---hi infrastructure/market area--ran big time with frankfurt listing---thrifty management, pres is oilpatch engineer--works for a living, building co---
slv nr
Stealth Ventures Ltd. - Drilling of Third Horizontal CBM Well Underway at Cumberland, Nova Scotia, Second Well Being Completed
Thursday September 28, 7:28 pm ET
CALGARY, Sept. 28 /CNW/ -
Cumberland Basin - Stealth Ventures Ltd. ("Stealth") is pleased to announce that it has successfully drilled a 738 metre horizontal lateral in the Number 2 coal seam at its Coalmine Brook No.12 drill site at Springhill, Nova Scotia. The service rig is currently on location doing preliminary completion work in anticipation of production testing over the next several months.
The drilling rig has been moved to the Coalmine Brook No.13 location on the same drill pad and is currently drilling a horizontal lateral in the Marker 'O' coal seam. This multi-well drill pad was designed for up to twelve wells, targeting four different coal seams, drilled at three different azimuths, with wellheads spaced on thirty metre centers.
The Coalmine Brook No.3 well, which was equipped for production in June of this year, will be undergoing a cleanout operation focused on removing coal fines from the slotted liner. A Nitrogen coil tubing unit will be utilized in this operation when it has been released by the operator who mobilized the equipment from Western Canada. This equipment will remain at Stealth's Coalmine Brook operations until all three wells are substantially into the production testing phase. The Coalmine Brook No.3 has a 430 meter horizontal lateral in the Number 6 coal seam.
------------------------------------------------------------------------
Well Name Coal Seam Horizontal Lateral
--------- --------- ------------------
------------------------------------------------------------------------
Coalmine Brook No.3 Number 6 430 Metres
------------------------------------------------------------------------
Coalmine Brook No.12 Number 2 738 Metres
------------------------------------------------------------------------
Coalmine Brook No.13 Marker "O" Drilling
------------------------------------------------------------------------
Stellarton Basin - Stealth has completed a two well, 1500 metre coring program at the Priestville site. A complete program of desorption testing, geochemical and geophysical analysis is being conducted on both cores and expected final results are to be assembled late in 2006 or early in 2007. Drilling is expected to re-commence in the area during first quarter of 2007.
The Cumberland basin, with a 75% working interest, and the Stellarton basin, with a 100% working interest, represent a gas resource play in Nova Scotia for Stealth estimated by Sproule Associates to contain net 1.313 TCF of "Discovered CBM Resource". Stealth's drilling program is designed to test the productivity and commerciality of this resource. Stealth is a Calgary-based junior oil and gas company whose expertise and focus is on "unconventional" gas reserves including CBM, shale gas and tight gas sand reservoirs.
STEALTH VENTURES LTD.
"W. Robert Bell"
Per:
W. ROBERT BELL
President
Panterra completes another phase---possibly hi impact play---1 million acre exploration permit in sask---the last deal mentioned is a side play, pan and stealth are getting the drilg for free, actually made a few bucks on the land play, will gain some knowledge, each retain 1/4 interest and pan is entitled to reasonable profit on operations--the nr---
PanTerra Finishes Moose Jaw Drilling
Tuesday November 14, 9:30 am ET
PAN - TSXV
CALGARY, Nov. 14 /CNW/ - PanTerra Resource Corp. (the "Company") is very pleased to report that it has successfully finished its 16 well drilling program at Moose Jaw. All 16 wells showed excellent gas indications and were cased. Three wells were extensively cored and the cores are presently being analyzed in the USA. With the successful completion of this program the Company and its partner have now met their expenditure requirements for the 'Exploration Permits' on their 3 major blocks; Shell Lake, Foam Lake and Moose Jaw.
The drilling rig used at Moose Jaw is presently moving to Whitehill Lakes near North Battleford, where PanTerra as Operator, will drill 5 wells and earn a 25% carried interest.
Furthermore, the previously announced cased-hole logging program was completed at Shell Lake in October and is ongoing at both Foam Lake and Moose Jaw and should be completed by early December.
The TSX Venture Exchange has not reviewed nor accepts responsibility
for the adequacy or accuracy of the contents of this news release.
For further information
Fred P. Rumak P.Geol., President and C.E.O., (403) 261-5900, Email to: fred@panterraresource.com
Strat Petroleum Completes Delivery of Processed Oil from Sludge
via COMTEX
November 14, 2006
TORONTO, Nov 14, 2006 (BUSINESS WIRE) --
Strat Petroleum, Ltd. (OTC:SPRL), an exploration and development company focusing on oil and gas opportunities in the Russian Federation, announced today that Strat Nafta Ufa (SNU), its joint venture in the Republic of Bashkorstan, has completed the initial shipment of processed oil from oil sludge. Each shipment contains approximately 200 barrels towards a total delivery of between 400 and 500 barrels per week with current equipment and technology. The joint venture is investing in additional equipment that is expected to increase production and shipment to approximately 150 bpd within the next 30 days.
In its efforts to rapidly improve production, Strat continues to work closely with a U.S. chemical company whose proprietary technology is projected to significantly increase daily processing capacity. Current testing indicates that the Strat Nafta Ufa plant should process at least 50 metric tons (MT) of sludge per hour, operating on a 24 hour 7 days a week basis. The processing equipment and methodology currently being employed will be scalable to process several hundred tons of sludge per hour once the plant is up and running at full capacity. Expectations are that recovery of crude oil should average between 40 to 50 percent of sludge processed, resulting in a production capacity range of 140 to 175 barrels of crude oil per hour. This process and technology will be superior to any processing solution available in the market today.
About Strat Petroleum:
Strat Petroleum is an emerging exploration and development company focusing on investment in oil and gas properties and other related projects in the Russian Federation. For more information, please visit the company website at www.stratpetroleum.com. The company's phone numbers are: 905-761-9169 (main), 416-628-8018 (fax) and 646-216-9751 (U.S.).
Statements made in this press release regarding the Company's or management's intention, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; uncertainties of completing business transactions; uncertainties of raising necessary capital; no control over long term pricing; possible reductions in demand for our products and services due to competition or changes in industry conditions or political environment; changes in the nature of energy regulation in the Russian Federation, the United States and other countries; political risk; currency exchange risk; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; reliance on management and management contacts; and other risks that may be referenced from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE: Strat Petroleum, Ltd.
Strat Petroleum, Ltd. Tanya Hyams, 905-761-9169
Govt action on Enery income trusts in canada having knocked props outa jrs for a bit---I'll paste some good input on that in a minute--cnq alone has cut back exploration by 1.5 billion $---primarilly gas---
Anyway, i recently put some more dough into Rogere's tdc, which I figured 4 yrs ago was worth honest 5$ a share after looking at 43-101 done by dave dupre---looks like tdc broke out today with 5x normal vol, settled +20% and bids stacked up:
Market Depth By Order For TDC as of 2006-11-13 15:59:32
Special terms orders and non-boardlot orders do not appear in the Market Depth by Order.
Bid Ask
Broker Volume Price
85 Scotia 5,000 0.51
1 Anonymous 4,500 0.50
19 Desjardins 5,000 0.50
57 Interactive 10,000 0.50
1 Anonymous 30,000 0.50
7 TD Sec 5,000 0.50
1 Anonymous 250,000 0.49
6 Union 10,000 0.48
1 Anonymous 150,000 0.48
1 Anonymous 10,000 0.47
Price Volume Broker
0.52 22,000 14 ITG
0.53 19,000 88 E-TRADE
0.53 3,000 7 TD Sec
0.53 10,000 85 Scotia
0.54 14,000 79 CIBC
0.54 3,000 57 Interactive
0.55 10,000 80 National Bank
0.55 3,000 57 Interactive
0.55 9,000 1 Anonymous
0.57 5,000 57 Interactive
Anyhow, back to gas, trust impact, hit on service cos' etc--
from pescod le--
CANADIAN NATURAL RES. (T-CNQ) $57.34 -0.56
CENTURION ENERGY (T-CUX) $11.97 +0.89
You can almost hear the air whistling out of the balloon
– the Western Canadian Sedimentary Basin is probably the
most expensive area of the world to operate and explore
in—high wages, high service costs, high land costs plus a
maturing basin—and now the “Sugar-Daddy” that supported
this high cost operation—the Income Trust has
been taken away.
Canadian Natural Resources alone has announced cut
backs in exploration (mainly gas) of about $1.5 billion,
which tells you something…….Yes, one company $1.5 billion.
They have also repeatedly stated in the press that if
the big companies do cut back it might bring service costs
down.
Drillers and service companies aren’t going to be as
busy as they were and the rates that they were charging
before are probably going to be weakened, which probably
sets us up for another cycle for natural gas down the road.
Meanwhile, there are always opportunities and the news
out of the Middle East that Dana Gas is buying Centurion Energy,
the Calgary based company with assets in Egypt and
Tunisia, makes one wonder if suddenly the assets of those
Calgary based companies with assets and plays in the Middle
East might be worth a little more……..
Another play that is based in the Middle East that might
benefit from the CUX buy-out is Rally Energy, the Abby
Badwi company that has repeatedly enjoyed recommendation
calls from analyst Andy Gustajtis and also oil-man
Dick Gusella (Abby and Dick have worked together before).
With the higher prices for the last few years for oil, one
wonders if the Middle East companies aren’t flushing cash
and maybe there can be some more of these take-outs
down the road as well, or at least again the thought of
higher valuations for companies based in that area of the
world.
Meanwhile, there are also some junior explorers out
there such as John Clarke’s Candax Energy with plays in Tunisia
and the Middle East and also Oracle Energy with some
high profile plays in Yemen.
XXXXXXXXXXXXXXXXXXXX I used to be in rally and made good $$---but some of the guys were former talisman and kinda rubbed me the wrong way so i got off----also i figgered they'd shoot their wad and not get the heavy oil in egypt figured out--by stock price i was maybe wrong, but still can't lose too bad when you leave with a triple----
Natural Gas Services Group Announces a 37% Increase in Total Revenues, a 117% Increase in Net Income and a 67% Increase in Diluted Earnings Per Share for the Three Months Ended September 30, 2006
Wednesday November 8, 1:00 pm ET
30% Increase in Total Revenue for the Nine Months Ended September 30, 2006 to $46.2 Million; 72% Increase in Net Income for the Nine Months Ended September 30, 2006 to $5.3 Million
MIDLAND, Texas, Nov. 8 /PRNewswire-FirstCall/ -- Natural Gas Services Group, Inc. (Amex: NGS - News), a leading provider of gas compression equipment and services to the natural gas industry, announces its record financial results for the third quarter and nine months ended September 30, 2006.
Natural Gas Services Group, Inc.
(in thousands of
dollars, except
per share Third Third Nine Nine
amounts) Quarter Quarter Change Months Months Change
2005 2006 2005 2006
Total Revenues $12,460 $17,130 37 % $35,532 $46,166 30 %
Operating income $2,207 $3,690 67 % $6,245 $8,655 39 %
Net income $1,091 $2,364 117 % $3,060 $5,268 72 %
EPS (Basic) $0.14 $0.20 43 % $0.43 $0.47 9 %
EPS (Diluted) $0.12 $0.20 67 % $0.37 $0.47 27 %
EBITDA $3,316 $5,634 70 % $9,322 $13,805 48 %
Weighted average shares outstanding:
Basic 7,606 11,960 7,078 11,199
Diluted 8,771 12,046 8,213 11,264
Revenue: Total revenue increased from $12.5 million to $17.1 million, or 37%, for the three months ended September 30, 2006, compared to the same period ended September 30, 2005. These gains were the result of a 38% increase in rental revenue and a 46% increase in sales revenue that outweighed the corresponding $401 thousand decline in service and maintenance revenue, coinciding with our strategy to deemphasize this business segment. Total revenue increased from $35.5 million to $46.2 million, or 30% for the nine months ended September 30, 2006 compared to the same period ended September 30, 2005. These results were due to a 45% increase in rental revenue and a 29% increase in sales revenue. Service and maintenance revenue declined by $1.0 million in the comparable nine month period. Total revenues increased approximately 11% from the second quarter of 2006 to the current quarter.
Operating income: Operating income increased from $2.2 million to $3.7 million, or 67%, for the three months ended September 30, 2006, compared to the same period ended September 30, 2005, and increased from $6.2 million to $8.7 million, or 39%, for the nine months ended September 30, 2006 compared to the same period ended September 30, 2005. The higher operating income was driven by strong sales and rental gross margins and higher total revenues for the current quarter. Third quarter gross margins for sales revenues were 23%, while rental revenues experienced a year-to-date high gross margin of 63%. Indirect operating costs, consisting of selling expense, general and administrative expense and depreciation and amortization expense, for the three-month comparable year-over-year periods increased only 14% as compared to a 37% rise in revenue. Sales, general and administrative expenses averaged 8% of revenue for the nine months of 2006 when compared to 10% of revenue in the same nine month period in 2005. Operating income was $3.7 million for the current quarter as compared to $1.9 million in the second quarter of this year, a 93% increase. This increase was due to higher revenues and higher gross margins.
Net Income: Net income for the three months ended September 30, 2006, increased from $1.1 million to $2.4 million, or 117%, compared to the three months ended September 30, 2005. Net income for the nine months ended September 30, 2006, increased from $3.1 million to $5.3 million, or 72%, compared to the same period ended September 30, 2005. These significant gains in both comparative periods were the cumulative result of higher revenues, robust gross margins and positive net interest income. Net income for the three months ended September 2006 grew to a record 14% of total revenue which, at $2.4 million, amounted to more than half of 2005's full-year net income.
EBITDA: EBITDA (see discussion of EBITDA at the end of this release) increased 70% from $3.3 million for the three months ended September 30, 2005 to $5.6 million for the three months ended September 30, 2006. EBITDA increased 48% from $9.3 million for the nine months ended September 30, 2005 to $13.8 million for the nine months ended September 30, 2006. As a percentage of revenue, EBITDA increased from 27% in the third quarter of 2005 to 33% in the current period and is averaging 30% in the nine month period of 2006 as compared to 26% in the same period a year ago.
Earnings per Share: Earnings per diluted share increased 67% to $0.20 during the three months ended September 30, 2006 as compared to $0.12 during the three months ended September 30, 2005. Comparing the first nine months of 2005 versus 2006, earnings per diluted share grew 27% from $0.37 to $0.47. The growth in earnings per diluted share was achieved in spite of a 37% increase in the number of diluted shares for the comparative three and nine month periods.
Steve Taylor, President and CEO of Natural Gas Services Group, Inc. said, "Despite uneven industry conditions this year characterized by increasing natural gas storage levels and declining natural gas prices, our business again grew to record levels. Our total revenue for the first nine months of this year is already at 94% of 2005's full-year level, our year-to-date net income easily exceeds all of last years and we have had double digit percentage increases in our major financial indicators. The strength and momentum we continue to demonstrate is a result of our focused strategy, our exceptional execution and our excellent employees."
The Company has scheduled a conference call Thursday, November 9, 2006 at 9:00 a.m., Central Standard Time, to discuss 2006 Third Quarter and Nine Months Financial Results.
What: Natural Gas Services Group, Inc. 2006 Third Quarter and Nine
Months Financial Results Conference Call
When: Thursday, November 9, 2006 at 9:00 a.m. CST
How: Live via phone by dialing 800-624-7038. Code: Natural Gas
Services. Participants to the Conference call should call in at
least 5 minutes prior to the start time.
Northamerican Energy to Acquire Additional Leases
Wednesday November 8, 12:25 pm ET
HOUSTON, Nov. 8, 2006 (PRIMEZONE) -- Northamerican Energy Group Corporation (Other OTC:NNYG.PK - News) announced today that it has reached an understanding to acquire and assume additional leases in the Permian Basin as part of an overall agreement with a company that works closely with Northamerican on its current lease holdings.
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These properties contain a number of inactive gas and oil wells in shallow (1500'-4300') oil and gas fields located on non-contiguous acreage and leases in Pecos County, Texas. These properties are in a mature, existing field, and these leases were developed and operated until they became inactive in the past 10-15 years when oil and gas prices did not support their continuing operation.
``These leases and their wells are low-cost, low-risk, primary production properties in need of work over using numerous types of both new and proven oil field technology. These properties fit perfectly into Northamerican's strategy of acquiring economically viable leases that will return investment and workover costs quickly resulting in positive cash flow for the company within 12 months and are extremely pleased that these leases will enable us to continue in our program to acquire these types of properties,'' stated Jon Ginder, Northamerican Energy Group's CEO.
Northamerican Energy Group has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company will concentrate on acquiring prospects, which are and have proven oil and gas production which has been operating for many, many years. By acquiring working interests in proven low-risk fields, the Company minimizes the risk by not ``wildcatting or drilling dry-holes'' and incurring any expense of building major infrastructure to get the product to market. Finally, the Company's low-cost operations and low overhead structure allows the Company to maximize the income and revenue from each production lease.
Sector Wrap: Alternative Energy Sparks
Wednesday November 8, 4:18 pm ET
Alternative Energy Shares Heat Up on Democratic Gains in Congress
NEW YORK (AP) -- Alternative energy companies got a boost Wednesday on news that the Democrats had retaken control of the House and were poised to take over the Senate as well.
Julie Hudson of UBS Investment Research said the shift in the balance of power could translate to changes in emphasis in the tone of environmental policy, and possibly climate change, discussions.
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UBS also said in a report released prior to the elections that Democrats would be more likely to hold congressional hearings on global warming, support higher gas taxes and encourage the shift toward forms of alternative energy such as wind and biofuels.
Shares of Archer Daniels Midland Co., an oilseed processor and ethanol producer, posted some of the days largest gains, gaining $2.20, or 6.6 percent, at $35.73 on the New York Stock Exchange.
The Decatur, Ill.-based company on Wednesday told analysts about plans to boost its growth in both its bio-energy and agricultural processing businesses.
Elsewhere in the sector, shares of Andersons Inc. rose $2.05, or 5.8 percent, to $37.15 on the Nasdaq.
The processor of corn, soybean and wheat recently entered the ethanol market and began production at a new Michigan ethanol plant during the third quarter. A second plant is being built in Indiana.
Shares of Pacific Ethanol Inc. climbed $1.29, or 8 percent, to $17.51 on the Nasdaq, while shares of Aventine Renewable Energy Holdings Inc. rose $1.18, or 5.7 percent, to $21.94, and Verasun Energy Corp. picked up $1.69, or 9 percent, at $20.40, both on the NYSE.
Other alternate energy companies rose as well.
Ballard Power Systems Inc. gained 58 cents, or 8.7 percent, at $7.25; Plug Power Inc. added 21 cents, or 5.3 percent, at $4.14; FuelCell Energy Inc. finished the day up 23 cents, or 3.4 percent, at $6.95; and Rentech Inc. rose 32 cents, or 9 percent, to $3.88 -- all on the Nasdaq.
Sector Wrap: Alternative Energy Sparks
Wednesday November 8, 4:18 pm ET
Alternative Energy Shares Heat Up on Democratic Gains in Congress
NEW YORK (AP) -- Alternative energy companies got a boost Wednesday on news that the Democrats had retaken control of the House and were poised to take over the Senate as well.
Julie Hudson of UBS Investment Research said the shift in the balance of power could translate to changes in emphasis in the tone of environmental policy, and possibly climate change, discussions.
ADVERTISEMENT
UBS also said in a report released prior to the elections that Democrats would be more likely to hold congressional hearings on global warming, support higher gas taxes and encourage the shift toward forms of alternative energy such as wind and biofuels.
Shares of Archer Daniels Midland Co., an oilseed processor and ethanol producer, posted some of the days largest gains, gaining $2.20, or 6.6 percent, at $35.73 on the New York Stock Exchange.
The Decatur, Ill.-based company on Wednesday told analysts about plans to boost its growth in both its bio-energy and agricultural processing businesses.
Elsewhere in the sector, shares of Andersons Inc. rose $2.05, or 5.8 percent, to $37.15 on the Nasdaq.
The processor of corn, soybean and wheat recently entered the ethanol market and began production at a new Michigan ethanol plant during the third quarter. A second plant is being built in Indiana.
Shares of Pacific Ethanol Inc. climbed $1.29, or 8 percent, to $17.51 on the Nasdaq, while shares of Aventine Renewable Energy Holdings Inc. rose $1.18, or 5.7 percent, to $21.94, and Verasun Energy Corp. picked up $1.69, or 9 percent, at $20.40, both on the NYSE.
Other alternate energy companies rose as well.
Ballard Power Systems Inc. gained 58 cents, or 8.7 percent, at $7.25; Plug Power Inc. added 21 cents, or 5.3 percent, at $4.14; FuelCell Energy Inc. finished the day up 23 cents, or 3.4 percent, at $6.95; and Rentech Inc. rose 32 cents, or 9 percent, to $3.88 -- all on the Nasdaq.
Oil steady above $59, OPEC talks more cuts By Simon Webb
Wed Nov 8, 6:56 AM ET
LONDON (Reuters) - Oil crept above $59 a barrel on Wednesday, as Gulf OPEC ministers meeting in Abu Dhabi pledged to push through a supply cut agreed last month and said a further reduction could follow.
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U.S. crude was up 25 cents to $59.18 a barrel by 1140 GMT. London Brent crude was up 22 cents at $58.70.
Prices had fallen by more than a dollar on Tuesday after a U.S. government agency said OPEC would only carry out 60 percent of a 1.2 million barrels per day (bpd) production curb.
But officials from the Organization of the Petroleum Exporting Countries on Wednesday dismissed the U.S. report.
"All of OPEC is committed (to the cuts)," United Arab Emirates Oil Minister Mohammed bin Dhaen al-Hamli said.
The world's largest oil exporter Saudi Arabia, as well as other OPEC members, have said the oil market remains oversupplied.
Saudi Oil Minister Ali al-Naimi said on Monday the cartel would take further action to cut supplies at its next meeting on December 14 if world markets remained imbalanced, deepening the 1.2 million barrels per day (bpd) cut from November 1.
OPEC members were concerned about high levels of stocks in the United States and other consuming nations, which have helped to pull prices down by around 25 percent from the record high of $78.40 for U.S. crude in July.
Weekly U.S. oil inventory data to be released later on Wednesday were forecast to show crude stockpiles rose by a modest 700,000 barrels last week, according to a Reuters poll of analysts.
Distillate stocks, including heating oil, were expected to be down by 500,000 barrels, while gasoline inventories were seen unchanged.
But Goldman Sachs said inventories were being eroded by stronger than expected demand.
"We continue to believe that the recent, lower oil price levels will prove short-lived, particularly as the lower prices have contributed to exceptionally strong demand growth in the U.S.," the investment bank wrote in a report.
It maintained its price forecast of $75.50 for U.S. crude next year.
Oil rises as gasoline supplies fall By MADLEN READ, AP Business Writer
1 hour, 57 minutes ago
NEW YORK - Oil prices rose above $60 a barrel Wednesday, as traders assessed declines in U.S. gasoline and diesel fuel inventories and the possibility of further OPEC production cuts.
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U.S. crude inventories rose last week by 400,000 barrels to 334.7 million barrels, but gasoline inventories fell by 600,000 barrels to 204 million barrels, the U.S. Energy Information Administration said Wednesday.
Also, distillate fuel inventories fell by 2.7 million barrels to 138.6 million barrels, the EIA said. Distillates include heating oil and diesel fuel; heating oil inventories rose slightly last week, but were offset by a huge 10 percent decline in diesel inventories.
Refineries' production decreased slightly last week to 88.1 percent, the EIA said.
"This is not a radically shocking set of data. However ... it shows somewhat smaller inventory surpluses than what we've seen in recent weeks," said Tim Evans, an energy analyst at Citigroup Global Markets. He added that the increase in crude was smaller than usual for this time of year, and the gasoline and distillate decreases were larger than usual.
U.S. oil supplies are still ample — above the average for this time of year. But oil prices remain buoyed by some OPEC ministers saying another production cut may be in order, strong demand and weather forecasters predicting a colder-than-normal winter in some parts of the United States.
Light, sweet crude for December delivery gained $1.20 to $60.16 a barrel in midday trading on the New York Mercantile Exchange.
Heating oil futures rose 4.12 cents to $1.7215 a gallon on the Nymex, where unleaded gasoline futures rose 4.79 cents to $1.5720 a gallon. Natural gas futures gained 8 cents to $7.83 per 1,000 cubic feet.
The market is considering whether the Organization of Petroleum Exporting Countries would make additional production cuts in December following a plan to reduce oil output by 1.2 million barrels a day starting Nov. 1. Since the announcement in mid-October, analysts and traders have questioned how many of the 11 OPEC members will deliver on the cuts they've promised.
"In general, the market remains skeptical of the entire OPEC production cuts story ... The market has struggled to stop declining," said Evans, pointing out that prices have barely risen since OPEC's output reduction announcement.
"But in time, the market will be convinced that the production cuts do matter," Evans added, noting that demand could outpace supply for the first few months of 2007.
Qatar's oil minister, Abdullah Al-Attiyah, said Wednesday he is confident that all OPEC members will comply with their recent pact to cut oil supplies.
Speaking to reporters at the end of a Gulf Cooperation Council oil ministers meeting in Abu Dhabi, Attiyah said, "We have to believe it, and we will check in the Abuja meeting. They have promised to obey and respect the resolution."
Asked if he was concerned that Nigeria has made no concrete efforts to cut oil supplies, Attiyah said, "What I have been informed from my own sources is they have already asked the oil producers there to cut production."
OPEC President Edmund Daukoru, also Nigeria's oil minister, said this week that low prices may encourage the oil cartel to further cut its output, but it doesn't have a specific price floor or band that it wants to defend. The group would discuss production at a December meeting in Abuja.
Oil prices have tumbled from a July high above $78 a barrel, trading in a range of around $57-$61 a barrel over the past month.
On Monday, Kuwaiti Energy Minister Sheik Ali Al Jarrah Al Sabah told reporters at the Abu Dhabi meeting that OPEC's Nov. 1 production cut had stabilized the market, and that further cuts might not be necessary. But Saudi Arabia's Oil Minister Ali Naimi reiterated that another cut was likely.
The long-term global outlook points to growing energy needs, with the International Energy Agency saying that governments around the globe must substantially increase their investment in the infrastructure that carries energy supplies to prevent a global shortage by 2030.
In its 2006 World Energy Outlook, the IEA said Tuesday that global energy needs will surge 53 percent by 2030, with more than 70 percent of that increase coming from developing countries, led by China and India.
Strat Petroleum Completes First Stage Financing & Begins Processing of Oil Sludge
Strat Petroleum, Ltd.
(OTC:SPRL),
an emerging exploration and development company focusing
on oil and gas opportunities in the Russian Federation -
today announced that it has completed a letter of intent
to form a joint venture with a private European entity
to begin processing of the oil sludge reservoirs acquired
by its subsidiary Strat Nafta Ufa (SNU) -
in the Republic of Bashkorstan.
The agreements, currently being completed, will provide
the first stage of financing required to establish between
two and three units to process significant quantities of
sludge on a daily basis.
Although all agreements have yet to be completed,
financing for the first unit has already been provided
and mutual commitments have begun; the first shipment
of approximately 150 barrels of crude oil to be provided
under contract to a local customer at a profitable price
will be delivered on October 27th.
The SNU joint venture has signed an agreement with this
customer to supply at least 300 bpd and has lined up
additional customers for future production in excess
of the 300 bpd.
During the past few months Strat has been performing
extensive due diligence in the form of evaluation and
testing of various solutions available to
process oil sludge.
In our attempts to arrive at a solution that would not
only be effective but very efficient and economical,
Strat had to review several available solutions.
Strat believes it has arrived at a very good and economical
solution that includes mechanical and ground breaking
chemical formulae to generate maximum profit and
highest shareholder value.
Strat's primary objective is to increase production
at the first site within a few weeks to at least 300 bpd
with production increasing to in excess of 1,000 bpd
early in the New Year.
At the same time Strat is evaluating new sites to
establish processing operations and will be ordering
additional equipment to begin operations early in the
New Year at these sites.
About Strat Petroleum:
Strat Petroleum is an emerging exploration and development
company focusing on investment in oil and gas properties
and other related projects in the Russian Federation.
For more information, please visit the company website at
http://www.stratpetroleum.com.
The company's phone numbers are: 905-761-9169 (main), 416-628-8018 (fax)
and 646-216-9751 (U.S.).
Statements made in this press release regarding the Company's
or management's intention----other risks that may be
referenced from time to time in the Company's filings
with the Securities and Exchange Commission.
Strat Petroleum, Ltd.
Tanya Hyams, 905-761-9169
Source: Business Wire (October 25, 2006 - 9:01 AM EST)
News by QuoteMedia
www.quotemedia.com
http://www.investorshub.com/boards/board.asp?board_id=2740
http://www.stratpetroleum.com./home.html
Sam Hyams Orthodox Jew Next Oil Baron?
Category Business And Finance
Article Title Orthodox Jew Next Oil Baron?
Author Howard Bloomberg
Article Summary H. Sam Hyams, a Toronto businessman
and Orthodox Jew, is on his way to becoming a major
player in the world oil markets with his company
Strat Petroleum, Ltd.
A well respected businessman in Canada, Hyams has
a strong network of contacts in the U.S.
and especially Russia.
His company is investing in the development of oil fields
in Russia through direct investment or the establishment
of joint ventures.
They are also leveraging relationships with local refineries
to secure refined oil product for sale to international
markets, in order to generate revenues and cash flows.
To achieve these objectives, Hyams is following an aggressive
acquisition and sales strategy and pursuing the best financing
alternative for each opportunity in order to realize early
returns on investment.
His aim is to be selective in securing those opportunities that
have the lowest risk while diversifying sources of revenue
through sale of crude oil and refined products.
Mr. Hyams, CEO and President of Strat Petroleum, Ltd holds
a Masters Degree in Business Administration from York University
in Ontario and is a Chartered Accountant.
His extensive experience over the past 20 years in Canadian
industry and on the international scene has included positions
in finance and accounting to assisting in establishing new
ventures by securing financing, and managing their business
plans.
If successful, Hyams will join only a handful of U.S.
companies successfully penetrating -
the Russian oil landscape.
The Company is a publicly traded on the NASDAQ
Emerging Pink Sheet Exchange (symbol:SPRL)
and their website is
www.stratpetroleum.com
About The Author
Howard Bloomberg is a retired author who has written more
than 25 How-To books for financial professionals.
An immigrant from Russia in 1962, Bloomberg was instrumental
in the discovery of "candlestick pattern" trading.
He lives in Washington, D.C. with his wife of 52 years.
Facts;
http://tinyurl.com/a5wz9
http://tinyurl.com/d5f9x
SPRL news was fantastic
there should be no doubt
Strat is the real
deal siging contracts with
the RUSSIAN GOVT
confirms this -
State-owned Rosneft
Rosneft controls Yuganstneftgaz
http://www.rosneft.ru/english/
SPRL is NOT a Short term play!
SPRL is a LT Large Crude play ...
http://tinyurl.com/99lky
---
Gemini plans Fort Saskatchewan fabrication centre for heavy oil...
Monday, October 23, 2006 - 10:13 AM ET
CALGARY (CP) _ Engineering, construction and industrial services
provider Gemini Corp. (TSXV:GKX) has announced plans for a new
fabrication plant in Fort Saskatchewan, Alta.
The facility will serve heavy-oil companies and other industrial
clients.
http://www.investorshub.com/boards/board.asp?board_id=6668
Tri-Valley's Second Temblor Development Well Taps Oil Sands
Wednesday October 18, 11:26 am ET
BAKERSFIELD, CA--(MARKET WIRE)--Oct 18, 2006 -- Tri-Valley Corporation (AMEX:TIV - News) has cut 100 gross feet of oil-saturated Tulare Sand and an additional 30 feet of Etchegoin Sand while drilling its second development well on its Temblor Valley West property adjoining the prolific South Belridge Oilfield some 40 miles west of Bakersfield, California. These intervals are about 100 feet high to the first well which is 3,200 feet to the east and the cuttings are dripping oil when broken.
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The crew is preparing to take a core in the Diatomite zone, which is now penetrated. Meanwhile, the first development well is almost cleaned up from the hydraulic fracturing of the Diatomite interval and the Company will move to complete it for production shortly.
Both the Etchegoin and Diatomite typically have low Ultimate Recoveries (UR) of the oil in place. Tri-Valley uses 13 percent UR and 11 percent UR respectively in making its estimates of potential recovery. However, even a one-percent increase in the UR for the estimated oil in place in the Diatomite alone would potentially add another five million barrels on the Company's recovery model for the Temblor property.
"We will have a much better understanding of the practical upside potential once we have a core section of the actual formation to analyze. This will also tell us what drilling and recovery techniques to employ for the full development program to build production, revenue and reportable reserves in the optimum way," said Joseph R. Kandle, president of both Tri-Valley Oil & Gas Co and Great Valley Production Services LLC, the operating and well drilling subsidiaries respectively.
To build significantly increased production, revenue and reportable reserves, Tri-Valley has embarked on a drilling campaign in its producing and producible properties which accommodate very dense well patterns to enhance recovery of the oil in place.
In addition to the Temblor Valley West program, Tri-Valley is also undertaking, this quarter, a drilling project on its Pleasant Valley heavy oil property near Oxnard, California, which will require steaming of the typically very long-life wells in the area. Tri-Valley will employ modern recovery methods never before used in both these properties and expects to achieve higher than conventional production and UR rates as a result.
The Company is in its 43rd year of business as a successful operating company and for 32 years has been a full reporting 12 (g) publicly traded Delaware Corporation. Tri-Valley Corporation stock is publicly traded on the American Stock Exchange under the symbol "TIV" in the United States and is also traded in Europe on the Frankfurt Stock Exchange under the symbol "TVC WKN 911919." Our company websites, which include all SEC filings, are www.tri-valleycorp.com and www.tri-valley.de.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements which includes such words and phrases as exploratory, wildcat, prospect, speculates, unproved, prospective, very large, expect, potential, etc. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2006, and the annual report on Form 10-K for the year ended December 31, 2005.
Contact:
CONTACT:
F. LYNN BLYSTONE
PRESIDENT
CHIEF EXECUTIVE OFFICER
1-800-579-9314
Email Contact
Oil Rises on Shrinking U.S. Fuel Supply
Wednesday October 18, 11:01 am ET
Oil Falls Slightly Ahead of OPEC Meeting to Decide on Possible Production Cut
WASHINGTON (AP) -- Oil prices rose Wednesday after U.S. government data showed domestic inventories of gasoline and heating oil fell sharply.
The shrinking fuel supply came as refinery activity fell and a spell of colder weather pushed up demand for home-heating fuels.
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The Organization of Petroleum Exporting Countries is scheduled to meet in Qatar on Thursday to discuss production quotas and a possible cut of 1 million barrels. The cartel's intervention would follow a 25 percent decline in oil prices since mid-July.
Light sweet crude for November delivery rose 30 cents to $59.23 a barrel on the New York Mercantile Exchange. In London, December Brent crude on the ICE Futures exchange fell 16 cents to $60.78 a barrel.
In its latest weekly report, the federal Energy Information Administration said gasoline supplies fell by 5.2 million barrels last week to 210.2 million barrels, or 6 percent above year ago levels. Supplies of distillate, which include heating oil and diesel, shrank by 4.5 million barrels to 145.4 million barrels, or 15 percent above year ago levels.
The agency said refinery activity also fell. Refiners ran their plants at an average of 86.3 percent of capacity, a decline of almost 3 percent from the week before.
Crude-oil supplies grew by 5.1 million barrels to 335.6 million barrels, or 7 percent above year ago levels.
Gasoline futures edged up to $1.4650 a gallon on the Nymex, while heating oil fell half a cent to $1.7280 a gallon. Natural gas prices fell 3 cents to $6.410 per 1,000 cubic feet.
The impact of a potential 1 million barrel a day cut by OPEC remains to be seen, with traders eager to see whether the cartel merely reduces its official output quota or reduces production from current levels.
Other major influences on prices in the months ahead will be the economy, the weather and geopolitics, most notably the West's diplomatic dispute with Iran, OPEC's No. 2 producer, over its nuclear ambitions.
FODL Forster Drilling Corporation's Common Stock Shares Now DTC Eligible
Business Wire - October 12, 2006 7:00 AM (EDT)
HOUSTON, Oct 12, 2006 (BUSINESS WIRE) -- Forster Drilling Corporation (OTCBB:FODL) announced today that its shares are now eligible for safekeeping with the Depository Trust Corporation.
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. The depository brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in custody.
DTC eligibility will provide clearing and settlement efficiencies in Forster common stock shares by immobilizing securities and allowing "book-entry" changes to ownership.
Forster Drilling Corporation is a publicly traded holding company with three wholly-owned subsidiaries that are involved in contract drilling, rig component manufacturing and complete rig assembly, and participation in drilling and exploration projects with drilling customers.
SOURCE: Forster Drilling Corporation
For Forster Drilling Corporation:
The Buick Group, Toronto
Jonathan Buick, 1-877-748-0914 (toll free)
Office: 416-915-0915
Fax: 416-915-0916
jbuick@buickgroup.com
www.buickgroup.com
Copyright Business Wire 2006
Ary news out---
Press Release Source: Avery Resources Inc.
Avery Resources Announces Australian Production
Wednesday October 11, 9:15 am ET
CALGARY, Oct. 11 /CNW/ - Avery Resources Inc. (TSX-V: ARY - News) today announced it has been advised by the operator that production has commenced at its Toparoa-1 oil discovery in the South Australian sector of the Cooper Basin. Toparoa-1 initially flowed at 1,570 barrels per day of light (42 degree API) sweet oil and, after well clean-up, it is currently producing 1,980 barrels of oil per day (bopd) plus a 10 percent water cut. Avery has a 32.67 percent interest in the well, providing approximately 650 barrels of oil per day net to Avery at current flow rates.
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Avery's partner in drilling Toparoa-1, Stuart Petroleum Ltd., has stated that an electric submersible pump (ESP) has been installed and production is expected to continue at or near current rates. The well produces from the Hutton sandstone formation similar to the adjacent Derrilyn oilfield, 1.3 kilometers to the northeast. With almost the same net pay interval, Derrilyn-1 produced approximately 1,400 bopd, totaling about 500,000 barrels of oil, from the formation in its first 12 months of production.
"We are very excited that Toparoa-1 is producing as expected," said David Little, Chairman and CEO of Avery Resources. "The $1.4 million payment that we have received substantially offsets the delay in production that resulted from the participants' decision to produce the well into the recently completed pipeline, rather than trucking the oil. This production is expected to put the Company over the 600 barrels of oil equivalent per day (boepd) threshold and dramatically improve our cash flow. We look forward to similar successes in Australia as we continue our drilling program in the Cooper Basin."
About Avery
Avery Resources is an international hydrocarbon exploration and production company based in Calgary, Alberta. The Company is committed to growing shareholder value through international acquisitions and exploration in countries that provide significant exploration upside coupled with favorable fiscal and legal systems. Avery's primary interest is in Australia, where the Company is building a significant presence through production, partnerships, drilling and acquisitions. Avery is focusing its current drilling activity in the Cooper Basin region of Australia.
Forward looking statements
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information
Avery Resources Inc., David Little, Chairman & CEO, Richard Edgar, President, (403) 205-2526, Email: info@averyresources.com, Website: www.averyresources.com
Iradesso Communications Corp., Ken Wetherell, Investor Relations, (403) 503-0144 x224, Email: contact@iradesso.com
Global Investing 101: Africa and the Middle East
By Motley Fool Staff
October 9, 2006
As we await the launch of Motley Fool Global Gains, our new international investing service, we are taking a look back at some of our best international stock ideas. This article was originally published on June 12, 2006.
In the pantheon of international investing, if this were a World Cup, Africa and the Middle East would be the "team" that has a few really nice players, but not a roster that would give it a chance at winning the whole enchilada.
Perhaps I should say the "whole pita" or the "whole injera" or something more geographically appropriate. However, as someone who relishes the thought of digging in places other people might want to avoid, I was pretty sure that I would be able to find some real value in Africa and the Middle East. Besides, everyone else here seems to have forgotten that the expanse of Africa and the Middle East contains two ideally situated, rapidly growing, developed economies with robust levels of minority shareholder protection.
Yes, in this region there's Israel and South Africa. There's also Turkey, one of the fastest-growing economies in the world, with plenty of connection to Europe. These markets are also somewhat easy to track: Of the 66 countries that make up Africa and the Middle East, those are the only three countries that have companies listed on the three major U.S. exchanges. Israel is a burgeoning financial and technological powerhouse. South Africa is king of the precious-metals and diamond-mining businesses. And Turkey has a cellular company listed on the New York Stock Exchange.
Africa and the Middle East have more than their fair share of economic basket cases, to be sure. Congo? Disastrous. Somalia? May or may not have a government, and either way, it's at minimum a failed state. Zimbabwe has been run into the ground by policies that are so destructive and random that the country might have been better off if economic policymaking was done using Yahtzee dice and a highly trained chinchilla. These countries have no direct exposure to the major U.S. exchanges.
Unfortunately, neither do a number of smaller countries that have rapid growth rates and burgeoning economies. Botswana, for example, has recently held a higher sovereign debt rating than Japan. Kenya, Uganda, Ghana, and Namibia offer developing economies and burgeoning local stock exchanges. And across the Red Sea, the stock markets in Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates have been among the fastest-rising in the world before a recent swoon. Unfortunately, none of these markets is functionally open to international investors. Lebanon has corruption problems galore, which serve to impair its standing globally. However, Beirut has been a center for commerce and banking in the region for millennia, and the nation's emergence from decades of crippling civil war has created awesome opportunities.
Cracks are opening. Qatar Telecom is available on the London Stock Exchange, and billionaire Saudi Prince al-Waleed's Kingdom Hotels is exploring the ability to list overseas as well.
What Africa and the Middle East has, in a quantity that is unequaled anywhere else in the world, is potential. This is the most mineral-rich region in the world, and plenty of companies do enormous levels of work here, from Royal Dutch Petroleum (NYSE: RDS-A) and its African and Middle Eastern oil production resources to Vaalco Energy (AMEX: EGY) and its oil-exploration rights off the coast of the West African country of Gabon. If you want to speak of potential for growth, in Africa it's nearly limitless.
At the same time, as investors we cannot simply put our money into "potential." With the opening up of Africa to both the South African and (to a smaller degree) Israeli companies, growth in Africa is best tapped using companies that know the ground but are based in countries with sufficient shareholder protections. AngloGold Ashanti (NYSE: AU), a $10 billion South African gold-mining concern, has developed mines and interests throughout sub-Saharan Africa, and paper and pulp giant Sappi (NYSE: SPP) has done the same.
Gold? Paper? Beyond offering a proxy for the great currency debasement arguments circling the developing world, these might not offer the most exciting potential for investors. Look to the north, in Israel, and you'll find the foreign country that has more companies listed in the U.S. than any other. Many of these companies, like Answers (Nasdaq: ANSW), and Checkpoint Software (Nasdaq: CHKP), are high-tech concerns with little exposure to the Israeli economy, while Koor Industries (NYSE: KOR) is a conglomerate with diverse interests in telecommunications, agriculture, and venture capital.
Africa and the Middle East may not be the first regions people think of when they decide to look for overseas exposure. This is admittedly prudent. But between the diverse powerhouse economies of Israel and South Africa, plus the myriad ways of investing in the region through foreign companies operating there, you're going to see that plenty of that raw potential is going to turn into profits in the next decade.
Typically, jrs have little or no income. Yet--they do it right, and they're where you make the most money. I play for multiples, I believe in knowing the players, I look for ones who do things like this:
"
PanTerra Gets 25% Carry at WhiteHill Lakes, Sask.
Tuesday October 3, 9:30 am ET
PAN - TSXV
CALGARY, Oct. 3 /CNW/ - PanTerra Resource Corp. (the "Company") is pleased to announce that with its partner Stealth Ventures Ltd. it has entered into an agreement with Mooncor Energy at the Company's WhiteHill Lakes property (PAN 50%) near North Battleford, Saskatchewan. Mooncor paid an up front fee which reimbursed the Company and its partner for more than 100% of their land and development costs. Mooncor will pay 100% of the cost to drill, case and complete 5 potential shallow gas wells (which will also include coring and shale gas analyses). Mooncor will then earn a 50% working interest, (PAN net 25% WI with no dollars invested). The WhiteHill Lakes property is in close proximity to wells drilled in the 1950's that have indications of by-passed gas pay in the Cretaceous section. PanTerra will act as operator in the project.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
For further information
Fred P. Rumak P.Geol., President and C.E.O., at (403) 261-5900, Email to: fred@panterraresource.com"
There is no downside with this little 'side play'---not only is it done at no cost to pan/slv (both of which I own) they will gain at the very least geo knowledge, plus as operator, pan is entitled to make a profit---
One could argue--'but they're out half the play'---that's o.k.--they got 1mm acres left of their main play--and to me, 1/4 of 5 at no cost beats half/pay half---at this point in their developement---
OZ---I been in this one a while----
Press Release Source: Avery Resources Inc.
Avery Resources Prepares for Australian Production Startup and Provides Exploration Update
Friday September 29, 12:04 pm ET
CALGARY, Sept. 29 /CNW/ - Avery Resources Inc. (TSX-V: ARY - News) today announced it has been advised by the operator that production startup operations have commenced at its Toparoa-1 oil discovery in the South Australian sector of the Cooper Basin. Avery has a 32.67 percent interest in the well. An arrangement was made to produce the Toparoa-1 oil into the recently built-out pipeline system, rather than trucking the oil, and Avery has received a $1.4 million cash payment as compensation for the necessary timeline revision. With regard to exploration activity, Avery is planning a three-well back-to-back drilling program in December 2006 in the Queensland sector of the Cooper Basin, and an additional seven wells are planned in the Cooper Basin throughout 2007 and into the first quarter of 2008.
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"Avery is looking forward to a busy and exciting fourth quarter in Australia," said David Little, Chairman and CEO of Avery Resources. "With our first Australian production coming on-stream and a busy seismic and drilling program planned, we are working hard to add value for our shareholders."
Production
Production from Toparoa-1, located in the Murteree Block of PEL 113 (Avery 35%) in the South Australian sector of the Cooper Basin, is expected imminently, subject to crew scheduling by the field operator, Santos Ltd. In recognition of the Toparoa-1 production delays and in accordance with the production arrangement, Avery negotiated and received a payment of $1.4 million CDN. Production via pipeline will eliminate the increased risk of down-time associated with trucking, including adverse weather and difficult roads, in this outback location.
Toparoa-1 drill-stem tested at 1,814 barrels of oil per day (bopd). The well will initially free-flow into an onsite storage tank, prior to diverting to the flow line. An ESP (electric submersible pump) is planned to increase production by late October. It will produce from the Hutton sandstone formation similar to the adjacent Derrilyn oilfield, 1.3 km to the northeast, which is also operated by Santos. With approximately the same net pay interval, Derrilyn-1 produced approximately 500,000 barrels of oil from the formation in its first 12 months of production.
Exploration
Avery is planning substantial fourth quarter 2006 seismic and drilling activity in the Barta and Wompi licence blocks located in the Queensland sector of the Cooper Basin. Avery has the right to earn up to 50 percent in the Barta/Wompi project.
Avery and its partners have reserved a rig to embark on a three-well back-to-back program in the ATP 752P Wompi Block (236,700 acres). Drilling of the wells is expected to begin in December. The three wells will be Maracoonda-2, Nora-1 and Gamma-1. With potential for an extended accumulation up-dip, Maracoonda-2 will test an interpreted three meters of net oil pay in the Hutton Sandstone first detected in Maracoonda-1. Nora-1 will test a robust structure that is along trend with the Watson and Watson South oil fields. These fields are located in the adjoining production license and they have produced more than three million barrels of oil to date. Gamma-1 will test a structure that is located up-dip from two wells that had strong oil shows in multiple horizons (Rho-1 and Rho East-1).
Avery has seismic programs planned in the ATP 752P Barta Block (631,100 acres), beginning in October 2006. A 3D seismic survey is being conducted over the Cook oil field adjacent to the license boundary, and Avery and its joint venture partners will acquire an extension into the Barta Block, aimed at detailing two potential field extension structures. On completion of the 3D survey, the joint venture will acquire a 100 km 2D infill survey over the Vancouver and Bligh series of structures. The 3D and 2D surveys will be used to determine drilling locations planned for the second quarter of 2007.
Also, beginning in October 2006, Avery will participate in a 3D seismic survey in block AC/P24 of the Timor Sea offshore Australia, to determine an appraisal well location for the Katandra-1 oil discovery. Avery has a 10 percent interest in Katandra.
To view a location map, please see the following address:
http://files.newswire.ca/534/avery_location_map.doc
About Avery
Avery Resources is an international junior oil and gas exploration and production company based in Calgary, Alberta that trades on the TSX Venture Exchange under the symbol ARY. The Company is committed to growing shareholder value through international acquisitions and exploration. Avery's primary interest is in Australia, where the Company is building a significant presence through partnerships, drilling and acquisitions. A successful oil well (Toparoa-1) was recently drilled by Avery and its partner in the Cooper Basin region of Australia where Avery is planning to drill up to ten wells over the next 18 months.
Forward-looking statements: Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information
Avery Resources Inc., David Little, Chairman & CEO, Richard Edgar, President, (403) 205-2526, Email: info@averyresources.com, Website: www.averyresources.com
Iradesso Communications Corp., Ken Wetherell, Investor Relations, (403) 503-0144 x224, Email: contact@iradesso.com
Nothing personal---and only gave it a glance--but I do follow lots of these and know a few folks in canadian 'patch---My impression: it smells.
PPTL's $214mil project...
Premium Pretroleum annouced awhile ago about a huge natural gas project up in Canada. They wanted to keep the testing on "tight holes status" so that they could buy 2 more crown lease zones without compitition, but I found out that they bought 8 zones! This has not been released yet, but will be anyday. Better hope on the train... here's the DD.
I found where Alberta lists all of the oil and gas crown leases, who purchased, how much land, and for how much money. Here's Alberta's public offerings website that I found the info, ( http://www.energy.gov.ab.ca/1051.asp ) Look at the pdf for May 31, June 28, and July 26. It says that PPTL purchased 2 zones of 256 hectares of land (4-11-001, 002) in May; 3 zones of 256 hectares of land (4-11-002) in June; and another 3 zones of 256 hectares of land (4-11-061) in July, for a total of 2048 hectares (or 5060 acres total) at approximately $670,000 total.
I called the CEO, Bruce Thomson, after work and he said yes, that they did purchase a substantial amount of land, but wouldn't tell me how much. He also said that by the end of the month that they would come out with a PR stating how much and the test results. In a previous PR, they stated that a gas well three quarters of a mile away from their property that it has been producing 3.4 mmcf per day... that's the same as 3400 mcf, where 1 mcf=1mmbtu, and a mmbtu was $5.60 yesterday. This multiplies out to $19,000/day or $570,000/month, or $6.9 million/year. And that's for one gas well. From what I've seen, there's about 1 well per 160 acres... If PPTL has 5060 acres, that's about 31 wells. If they all produce that same amount of gas and have that many wells, which are doubtful, then that would yield about $214 million/year.
I'm sure it would take awhile for them to drill that many gas wells, but if you look at the all-star team of PPTL, these guys probably have great networking. Infact, they said in a previous PR that they were about to get a rig within weeks because of networking. The one well PPTL drilled, they said that Schlumberger did the work. Also, these wells are around 1,800 feet! That is VERY shallow so the wells would be drilled fairly quick. Normally it takes a week to drill around 4,500 feet and cost around $150,000 per well to drill and case.
One PPTL's website ( http://www.premiumpetroleum.com/ ) they meantion about the Whitemud prospect. Mr. Thomson told me that they were no longer interested in the prospect and that they would focus on Boyne Lake. He also told me however, that there were 894 million outstanding shares. I don't know what the float is, but that still is a hefty amount. That amount is high mostly from the merger with ZooTech, where they had a 1 for 1 stock deal. Mr. Thomson also told me that after the PR is out, that they will be hiring an Investor Relations company to help get their name out. I also read that PPTL only owns 75% of Boyne Lake and that Habanero owns 20%. Habanero already released the flow rate of the gas, which was 3.9 mmcf per day. This is more than the near-by well. Also, there has been a spam email thing going around, which might have dropped the stock way down.
Take this info for what you want. As always, you should do your own due diligence! If this is want you want to call it.
I'd posted a more indepth deal on these 3 little cos--bhp wl fab earlier, but it was removed---they are trading 8x to 10x vol today---
From the land of OZ---
Press Release Source: Avery Resources Inc.
Avery Resources Prepares for Australian Production Startup and Provides Exploration Update
Friday September 29, 12:04 pm ET
CALGARY, Sept. 29 /CNW/ - Avery Resources Inc. (TSX-V: ARY - News) today announced it has been advised by the operator that production startup operations have commenced at its Toparoa-1 oil discovery in the South Australian sector of the Cooper Basin. Avery has a 32.67 percent interest in the well. An arrangement was made to produce the Toparoa-1 oil into the recently built-out pipeline system, rather than trucking the oil, and Avery has received a $1.4 million cash payment as compensation for the necessary timeline revision. With regard to exploration activity, Avery is planning a three-well back-to-back drilling program in December 2006 in the Queensland sector of the Cooper Basin, and an additional seven wells are planned in the Cooper Basin throughout 2007 and into the first quarter of 2008.
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"Avery is looking forward to a busy and exciting fourth quarter in Australia," said David Little, Chairman and CEO of Avery Resources. "With our first Australian production coming on-stream and a busy seismic and drilling program planned, we are working hard to add value for our shareholders."
Production
Production from Toparoa-1, located in the Murteree Block of PEL 113 (Avery 35%) in the South Australian sector of the Cooper Basin, is expected imminently, subject to crew scheduling by the field operator, Santos Ltd. In recognition of the Toparoa-1 production delays and in accordance with the production arrangement, Avery negotiated and received a payment of $1.4 million CDN. Production via pipeline will eliminate the increased risk of down-time associated with trucking, including adverse weather and difficult roads, in this outback location.
Toparoa-1 drill-stem tested at 1,814 barrels of oil per day (bopd). The well will initially free-flow into an onsite storage tank, prior to diverting to the flow line. An ESP (electric submersible pump) is planned to increase production by late October. It will produce from the Hutton sandstone formation similar to the adjacent Derrilyn oilfield, 1.3 km to the northeast, which is also operated by Santos. With approximately the same net pay interval, Derrilyn-1 produced approximately 500,000 barrels of oil from the formation in its first 12 months of production.
Exploration
Avery is planning substantial fourth quarter 2006 seismic and drilling activity in the Barta and Wompi licence blocks located in the Queensland sector of the Cooper Basin. Avery has the right to earn up to 50 percent in the Barta/Wompi project.
Avery and its partners have reserved a rig to embark on a three-well back-to-back program in the ATP 752P Wompi Block (236,700 acres). Drilling of the wells is expected to begin in December. The three wells will be Maracoonda-2, Nora-1 and Gamma-1. With potential for an extended accumulation up-dip, Maracoonda-2 will test an interpreted three meters of net oil pay in the Hutton Sandstone first detected in Maracoonda-1. Nora-1 will test a robust structure that is along trend with the Watson and Watson South oil fields. These fields are located in the adjoining production license and they have produced more than three million barrels of oil to date. Gamma-1 will test a structure that is located up-dip from two wells that had strong oil shows in multiple horizons (Rho-1 and Rho East-1).
Avery has seismic programs planned in the ATP 752P Barta Block (631,100 acres), beginning in October 2006. A 3D seismic survey is being conducted over the Cook oil field adjacent to the license boundary, and Avery and its joint venture partners will acquire an extension into the Barta Block, aimed at detailing two potential field extension structures. On completion of the 3D survey, the joint venture will acquire a 100 km 2D infill survey over the Vancouver and Bligh series of structures. The 3D and 2D surveys will be used to determine drilling locations planned for the second quarter of 2007.
Also, beginning in October 2006, Avery will participate in a 3D seismic survey in block AC/P24 of the Timor Sea offshore Australia, to determine an appraisal well location for the Katandra-1 oil discovery. Avery has a 10 percent interest in Katandra.
To view a location map, please see the following address:
http://files.newswire.ca/534/avery_location_map.doc
About Avery
Avery Resources is an international junior oil and gas exploration and production company based in Calgary, Alberta that trades on the TSX Venture Exchange under the symbol ARY. The Company is committed to growing shareholder value through international acquisitions and exploration. Avery's primary interest is in Australia, where the Company is building a significant presence through partnerships, drilling and acquisitions. A successful oil well (Toparoa-1) was recently drilled by Avery and its partner in the Cooper Basin region of Australia where Avery is planning to drill up to ten wells over the next 18 months.
Forward-looking statements: Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information
Avery Resources Inc., David Little, Chairman & CEO, Richard Edgar, President, (403) 205-2526, Email: info@averyresources.com, Website: www.averyresources.com
Iradesso Communications Corp., Ken Wetherell, Investor Relations, (403) 503-0144 x224, Email: contact@iradesso.com
cool thanks and GL
fab bhp wl even nhd are all moving up on vol, aftermarket announcement that 8mm$ hole will be completed should make tomorrow fun---eca is operator, but it don't say that---shhh!!!
good info Honest...SCU is another one...GLTY
Press Release Source: PanTerra Resource Corp.
PanTerra Doubles Potential Recoverable Gas Reserves
Tuesday September 26, 8:00 am ET
PAN - TSXV
CALGARY, Sept. 26 /CNW/ - PanTerra Resource Corp. (the "Company") reports that recently acquired gas analyses from the Foam Lake cores more than doubles the potential recoverable gas from 0.74 Bcf per section (gross) (as previously reported on Sedar October 2005) to 1.53 Bcf per section, should other reservoir parameters remain the same. Initial results indicate that gas derived from the cores is composed of 95% methane, 2% ethane / propane and 3% CO2, with heating values ranging from 978 to 1006 Btu's per standard cubic foot. This yields in excess of 320 Bcf (risked) of potential recoverable gas (net) to PanTerra's Saskatchewan lands.
The Company has successfully drilled and cased all 16 potential gas wells on the Foam Lake Exploratory Permit. Further analyses of the nine cores are presently being conducted at a specialty lab in the USA. Upon completion of the analyses, which will take a few months, the Company will have a greater understanding of the lithology and rock mechanics of the formations and will then be in a much better position to design proper completion and stimulation programs allowing it to maximize potential production rates and recoveries, creating additional shareholder value.
At Moose Jaw, the Company has drilled and cased 10 wells of its 16 well program and is currently drilling well number 11. Numerous gas bearing zones were encountered and recorded on gas detector logs while drilling. Cores will be cut on wells number 13 and 14 and will also be sent to the lab in the USA for analyses. The drilling phase of the Moose Jaw project should be completed by early to mid October.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
For further information
Fred P. Rumak, P.Geol., President and C.E.O. at (403) 261-5900, Email to: fred@panterraresource.com
Interesting. I still play the canadian jrs, hopefully for multiple returns.
Little guys partnered with big guys---lately I'm looking esp at those partnered with encana--eca---and I like eca's focus.---which is much like the larger miners, let the little guys find it---but eca is really stepping in and helping with tech and $$ on unconventional plays--
The ne b.c. deep play--prophet river, touche trench, etc is interesting---wl bhp fab invoved with eca there
Leader sask area---room for hundreds of wells--wlr
Pan---1mm acre exploration permit in sask--shale gas-sask like ab was in '70's---60 hole program half done---
Slv---with their hi impact play back east---
Vul---new basin onshore nfld---cash flow medicine man's hat--
Nord Oil International Hires Investment Banker and Begins AIM Listing Process
Wednesday September 13, 12:11 pm ET
NEW YORK, NY--(MARKET WIRE)--Sep 13, 2006 -- Nord Oil International (Other OTC:NDOL.PK - News) announced that it has retained a leading investment banker to list the corporation on the London Alternative Investment Market (AIM) and conclude a USD $60 million private placement.
The Company is very glad to be working with such a reputable firm that will play a key part in securing the financing which is needed to conclude several acquisitions and enable the company to increase production to 7 million barrels of crude oil per year. The Company has filled Form 15 as a first step in both the listing and financing process in London and to expedite the name change from Nord Oil International Inc. to North-West Oil Group Inc.
About Nord Oil/ North-West Oil Group
Nord Oil International is a reporting, publicly traded Oil & Gas company trading under the ticker symbol NDOL on the US Pinksheets market as well as on the Frankfurt Exchange under symbol CXIA. Nord Oil International and the North-West Oil Group merged on May 11, 2006. The company is in the process of filing all regulatory statements and will change its name to the North-West Oil Group and will be issued a new ticker symbol. The company presently produces over 120,000 Metric Tons of crude oil yearly.
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
Contact:
Contact:
Gerald Parkin
President
Nord Oil International Inc.
514-591-3666
http://www.nordoil.com
Soaring Natural Gas Prices Spur Drilling
Monday September 4, 1:27 pm ET
By Daniel Lovering, AP Business Writer
Soaring Natural Gas Prices Spur Widespread Drilling As Oil and Gas Firms Step Up Exploration
INDIANA, Pa. (AP) -- Deep in the wooded hills of western Pennsylvania, a 50-foot-tall drilling rig rattles and whooshes as it drives sections of metal pipe into the ground, one after another.
Hard-hatted workers have been operating the machine for less than a day, but soon they will have bored through 4,000 feet of dirt and rock that promises a rich reward -- natural gas trapped in layers of prehistoric sediment.
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Their company, Linn Energy LLC, carved out this small patch of earth just days ago, building a gravel road into a forest of maples and oaks. In another day or so, they will dismantle the rig, move it to another site and start drilling again.
Linn is among dozens of companies that have been drilling natural gas wells at historic rates across much of the Appalachian Basin, an area that includes swathes of Pennsylvania, West Virginia, Kentucky and Virginia.
Soaring prices and demand, along with modern drilling technology, are making such wells economically feasible.
The proliferation of drilling is not confined to the region, the birthplace of the commercial oil industry. Oil and gas firms have stepped up exploration and production in Texas, Colorado, Oklahoma and other states in recent years.
But Appalachia is relatively untapped and contains low-volume natural gas resources previously considered too difficult or expensive to exploit. It is also a premium market close to major cities such as New York and Philadelphia and a center for coal-bed methane, a fast-growing segment of the natural gas industry.
"You can run your economics now," said Michael Linn, Linn Energy's chief executive and a 26-year industry veteran. "The stabilized price, or at least the bottom part of the price, makes economic sense. That's what's kicked off this drilling."
Natural gas prices have held steady at $6 to $8 per thousand cubic feet for about the past 18 months, Linn notes, while the relatively long life span of wells in the area make the prospect of drilling more attractive.
Area wells may produce gas for as long as 20 years, unlike those in the Midwest, which may last 10 years, or along the Gulf of Mexico, where wells may expire after seven years, he said.
The favorable conditions have enlivened the market. In Pennsylvania, about 3,600 drilling permits were issued in the first six months of 2006. If that pace continues, the number issued this year could eclipse 2005's record of 6,042 by 20 percent.
"What's happening is you've got a perfect storm," said Linn, whose company has acquired or drilled more than 4,000 wells in Pennsylvania, Oklahoma, California, Virginia, West Virginia and New York since it was founded three years ago.
The number of natural gas wells nationwide jumped by 34 percent between 1999 and 2004, from 302,421 to 405,048, according to the U.S. Energy Information Administration. The number in Pennsylvania grew almost twofold, from 23,822 to 44,227, during the same period.
"That's a very sizable ramp up," said Pavel Molchanov, an analyst with Raymond James & Associates in Houston. "There are good reasons to believe this will last for a long time."
But industry representatives say the regional natural gas expansion is no gold rush. And it has been accompanied by problems such as lawsuits aimed at restricting drilling and long-standing shortages of equipment and workers.
"The profitability probably isn't as much as one would think because in line with the increase in prices is the increase in demand in services and drilling rigs and personnel," said Louis D. D'Amico, executive director of the Independent Oil & Gas Association of Pennsylvania. "Everything has just gone up astronomically, and we're having a tough time finding people."
The energy sector has endured several boom-and-bust cycles in recent decades. A prolonged slump that ended only in the past five years discouraged a generation of would-be petroleum engineers from entering the industry, leaving companies short-handed.
The cost of drilling also remains prohibitively high for individuals who may want to extract gas. Linn Energy spends upward of $250,000 to drill a well and install a well head, a small cluster of pipes and cylinders. Its return on investment has risen to about 8 to 9 percent.
The process entails scouting land, acquiring leases, securing government permits, conducting exploratory seismic studies and linking wells to pipelines.
Some property owners have welcomed offers by companies to lease their land and drill on it for two to five years. In return, they may get free gas for their homes and an eighth of the well's gross proceeds.
George Ondo, an 82-year-old retired construction worker, was given a $100 signing bonus earlier this year to lease a patch of his Indiana County property to Linn Energy. The company has 582 producing wells and 106 drilling sites in Indiana County alone.
"They're producing, but we haven't gotten any (royalties) yet," he said, adding that he accepted the offer mainly for the free gas. "It doesn't make an eyesore on our property. ... There's just pipes in the ground and a meter."
While energy sector heavyweights such as Exxon Mobil Corp. have not entered Appalachia, recent moves by large independent producers such as the Oklahoma City-based Chesapeake Energy Corp. have drawn attention to the area.
Last year, Chesapeake bought Columbia Natural Resources LLC of Charleston, W.Va., for $2.2 billion, allowing it to develop natural gas reserves throughout Appalachia and making it the third-largest reserve holder behind Exxon Mobil and ConocoPhillips.
Richard Mason, editor of the trade publication Land Rig Newsletter, said "the sector is undergoing a remarkable transformation," partly because of technology developed for offshore drilling is increasingly being adapted for use onshore.
The techniques include drilling horizontally, using "fracture stimulation" -- blasting outward from a drilled hole to reach locked-away gas -- and pumping water into holes to crack rock formations and free up gas, he said. Some have been used since the 1980s.
Thomas A. Metarko, a senior geologist for Linn Energy, said local competition is stiff as "everyone's trying to do the same thing."
"You can drill wells that were marginal in the past," he said. "A lot of wells weren't drilled because the price wasn't there."
Linn Energy LLC: http://www.linnenergy.com/index.php
Storm Cat Announces Second Quarter 2006 Financial Results
Tuesday August 15, 9:15 am ET
DENVER & CALGARY, Alberta--(BUSINESS WIRE)--Aug. 15, 2006--Storm Cat Energy Corporation (AMEX: SCU - News; TSX: SME - News) today announced second quarter 2006 financial and operating results and recent acquisition and financing activity subsequent to the second quarter 2006.
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Financial Overview
For the three months ended June 30, 2006 Storm Cat reported oil and gas revenues of $1.6 million, an increase of 36% over the second quarter of 2005. The increase in revenues was primarily due to a 28.9% increase in production.
The Company reported a net loss of $1.2 million or ($0.02) per share for the second quarter of 2006 as compared to a net loss of $3.2 million or ($0.07) per share in second quarter of 2005. The weighted average number of shares outstanding increased to 66.5 million shares in the second quarter of 2006 as compared to 44.8 million weighted average shares outstanding for the comparable quarter 2005. The increase in shares outstanding was due to three private placements that were undertaken in the past 12 months as well as the exercise of outstanding warrants and options.
Operating Overview
During the second quarter of 2006, the Company drilled 35 wells in the Powder River. For the full year, the Company plans a total of 73 wells in the Powder River. The Company had five wells in Elk Valley on production with total gas production of 250 Mcf/d. The 2006 Phase-1 Elk Valley drilling program (which consists of up to six wells) was started in August.
Net production increased 28% to 236.0 MMcf in the second quarter of 2006 from 184.1 MMcf as compared to the comparable prior period.
For the second quarter of 2006, the Company reported average gross daily production was 3,850 Mcf/d (2,670 net) as compared to 3,800 Mcf/d (2,547 Mcf/d net) for the first quarter of 2006. Current production is averaging 5,000 Mcf/d gross (3,640 Mcf/d net).
The average realized sales price of natural gas was $6.82 in second quarter 2006 up from $6.44 in the same period of the prior year.
A detail operational update was issued Thursday, July 27, 2006 and can be viewed on the Company's website.
J. Scott Zimmerman, President and Chief Executive Officer commented, "We continue to make progress in increasing our production through acquisitions and drilling activities. Our pending acquisition in the Powder River Basin will further strengthen our presence in the basin and positions the Company well for further production increases and operating efficiencies." Added Mr. Zimmerman, "This acquisition combined with our recently closed $250 million revolving credit facility positions the Company for future growth."
Outlook
For the current year, Storm Cat's budgeted capital expenditure program is $67.5 million as compared to $20.0 million in 2005. The Company expects to drill up to 85 wells, the majority in the Powder River Basin. The Company is forecasting a daily gross production rate at year end of at 18,000 Mcf/d (10,500 Mcf/d net).
Subsequent Events:
Recent Acquisition Developments
On July 21, 2006 the Company announced its intention to purchase approximately 25,200 gross acres (17,000 net acres) in the Powder River Basin coalbed methane (CBNG) play for approximately $30.7 million in cash. The acquisition, located in and around Storm Cat's core Powder River operating area, allows the Company to capitalize on economies of scale and operating efficiencies. The acreage is approximately 81% undeveloped and 90% of the acreage is located on U.S. federal lands. Storm Cat is acquiring approximately 10.2 billion cubic feet (Bcf) of proved reserves, 9.6 Bcf of probable reserves and 7.8 Bcf of possible reserves. Production from the acquired properties is approximately 6,600 Mcf/d, (approximately 3,000 Mcf/d net), of natural gas from 64 producing CBNG wells, 46 of which will be operated by Storm Cat. Pro forma for the acquisition, Storm Cat will have approximately 19.8 Bcf of proved reserves, 13.8 Bcf of probable reserves and 7.9 Bcf of possible reserves. The transaction is expected to close on or before August 29, 2006. Upon closing, the effective date of the transaction will be July 1, 2006.
Recent Financing Completed
In August, the Company closed a US $250 million revolving line of credit facility secured by mortgages on the Company's Powder River Basin assets. The credit facility is available to provide funds for the exploration, development and/or acquisition of oil and gas properties and for working capital and other general corporate purposes.
Also in August, the Company received a signed commitment letter from JPMorgan Chase Bank, N.A. to provide for up to $15 million senior secured mezzanine facility with proceeds to be used for the acquisition of the above mentioned Powder River Basin property.
By Order of the Board of Directors
Storm Cat Energy Corporation
J. Scott Zimmerman
President and Chief Executive Officer
STORM CAT ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months and Six months ended June 30, 2006
and June 30, 2005
(Stated in US Dollars and in thousands, except per share amounts)
Three months ended Six months ended
June 30 June 30
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
OPERATING REVENUES:
Oil and gas revenue $ 1,599 $ 1,172 $ 2,878 $ 1,612
EXPENSES:
Operating Costs
Gathering &
Transportation 280 265 563 270
Operating 774 812 1,350 976
General and
administrative 1,159 977 2,762 1,317
(Gain)/Loss on
disposition of
property - - (185) -
Accretion Expense 37 - 52 -
Depreciation, depletion
& amortization 661 2,277 1,149 2,541
----------- ----------- ----------- -----------
Total Operating
Expense 2,911 4,331 5,691 5,104
----------- ----------- ----------- -----------
Operating Loss (1,312) (3,159) (2,813) (3,492)
Loss on Foreign
Exchange 11 - 11 10
Interest and Other
(Income)/Expense (139) - (334)
----------- ----------- ----------- -----------
NET LOSS (1,184) (3,159) (2,490) (3,502)
=========== =========== =========== ===========
Basic and diluted loss
per share $ (0.018) $ (0.071) $ (0.038) $ (0.085)
----------- ----------- ----------- -----------
Weighted average number
of shares outstanding 66,504,095 44,768,241 66,145,091 41,103,956
=========== =========== =========== ===========
About Storm Cat Energy Corporation
Storm Cat Energy is an independent oil and gas Company focused on the pursuit, exploration and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations. The Company has producing properties in Wyoming's Powder River Basin, exploration and development acreage in Canada and Alaska. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME".
Forward-Looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995 relating to matters such as the Company's drilling and other exploration plans and projected well economics. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made; including production and reserve estimates, and potential benefits to Storm Cat of such acquisitions, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to receipt of necessary approval from regulatory bodies, the failure to achieve the anticipated benefits of the acquisition, the failure to close the acquisition, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F for the fiscal year ended December 31, 2005.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contact:
Storm Cat Energy Corporation
J. Scott Zimmerman or Paul Wiesner, 87-STORMCAT
www.stormcatenergy.com
Sunrise Energy Resources, Inc. - Operational Update
Thursday July 27, 1:13 pm ET
NEW YORK--(BUSINESS WIRE)--July 27, 2006--Sunrise Energy Resources, Inc. (OTCBB:SEYR - News), updates on the status of its fund raising activities.
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Effective July 26, 2006, Sunrise Energy Resources, Inc. (the "Company") executed a Convertible Note Agreement to complete a $1,000,000 private placement financing in the form of 6% notes convertible into the Company's common stock at the conversion price of $1.40 per share. The placement proceeds are expected to be made available to the Company in several tranches until September 30th, 2006. The proceeds shall be used to finance the completion of drilling of the Well #21 in the proven area of the Company's Karaikozovsk property, drilling of the exploration Well #1 on the Company's Peremyshlyansk property as well as the construction of access roads and other infrastructure on the Company's Chukvinsk property.
Since April 1, 2006 to date the Company has raised $1,845,000 from convertible note placements. The Company also reports that on its Karaikozovsk property 3428 m (11,246 ft) of the Well #21 has been drilled. Well #1 on Peremyshlyansk property has been drilled to the depth of 783 m (2,569 ft).
This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
Contact:
Sunrise Energy Resources, Inc., New York
Investor Relations
Konstantin Tsiryulnikov, 212-973-0063
Storm Cat Energy Corp. CEO Featured in Exclusive Interview With WallSt.net
Tuesday July 25, 7:00 am ET
NEW YORK, July 25 /PRNewswire/ -- On July 24, Scott Zimmerman, CEO of Storm Cat Energy Corp. (Amex: SCU - News; Toronto: SME - News) updated the investment community in an exclusive interview with www.wallst.net . Topics covered in the interview include an overview of the Company and the markets it serves, recent press releases, current capitalization, and upcoming strategic and financial milestones.
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To hear the interview in its entirety, visit www.wallst.net , and click on "Interviews." Interviews require free registration, and can be accessed either by locating the respective company's ticker symbol under the appropriate exchange on the left-hand column of the "Interviews" section of the site, or by entering the respective company's ticker symbol in the Search Archive window.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused on the pursuit, exploration and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations. The Company has producing properties in Wyoming's Powder River Basin, exploitation and development acreage in Canada and Alaska, and high-risk, high-reward exploration acreage in Mongolia. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
About WallSt.net
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Contact:
Nick Iyer
Digital Wall Street, Inc.
1-800-4-WALL-ST
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