Oil Stock Report

[alfaspider]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72132743

Latimer and Homier aren't around for just peanuts- and banks would probably have Fc'd on them if there wasn't something worth a few bucks....

[Belgianshareholder]

SIOR





SS confirmed yesterday: "The authorized is 200,000,000 shares and the issued and outstanding is 199,689,962 shares."

167M held by insiders

[alfaspider]

CAN0- reports soon? Will being on the Pinkies allow them to replace reserves onto the books?

Same thing happened to AFT/ AXST.PK -- AFT was on AMEX but got delisted to pinks- took a year or so, but AXST went from 6- 8 cents to 41 cents, with reorganization and a Sprint contract for $7.6M

Latimer and Homier will make bucks on the monthly fees for sure...

[SeaOhToo]

Look like FPP Fieldpoint Petroleum hit a well. Check out the news. Stock up $1.00 in 2 days.

[alfaspider]

only value in CFW is fact that Latimer and Homier are involved- just looking at their track record- I'd buy back into CFW after it goes pink and settles to penny or two down the road... Then a 2 year hold until they restructure and sell it off. Mgmt is usually the key to anything, and if they wanted to BK it, it would have happened already.

Did same thing with AXST- They were AFT on the Amex but got delisted-- so bought 1.5 million shares below 10 cents (mostly at .06- .08 ). Its been hitting .33 to .35 past few weeks, and I've only got few hunderd k shares left. Seems the insiders bought all my stash over past few months...............

Will be watching EOR- saw the 124K share day. But also watching couple of others.

Whats your take on TGC?- very stable and getting into Methane reselling from landfill sites?

Europe thing is far from settled, and not sure it will end up up.

[SeaOhToo]

never really saw the value in CFW. They keep writing off the asset value on the books and it is upside down and almost ready to declare BK. Until I see how they are going to turn it around....

I do see value in EOR. When they close they will receive $.185 a share. trades at .13-.135.

[alfaspider]

"0.13 -0.005"

Do you feel shafted yet?

I got out of CFW at .19 - .20, and had some for the bounce to .17

only joking around- not being disrespectful..

Looking for CFW to go pink, and drop perhaps to .05 or so- and hold there until Latimer sells it off? JMHO///

[SeaOhToo]

2011-12-09 EOR 0.135 0.135 0.13 0.13 -0.005 124,910

[alfaspider]

and then came Dec 9th - "without any volume"?

or did you buy the 10k shares?

[SeaOhToo]

and then came Dec 9th

Enhanced Oil extends St. Johns sale closing to Dec. 31

2011-12-09 09:48 ET - News Release

Mr. Barry Lasker reports

ENHANCED OIL RESOURCES INC. PROVIDES UPDATE ON OPERATIONS AND SALE OF ST. JOHNS ASSETS

Enhanced Oil Resources Inc., by mutual consent, has extended the target closing date of Dec. 8, 2011, to Dec. 31, 2011, for the previously announced sale by its subsidiary of all of its right, title and interests in the St. Johns dome and certain related assets, located in Apache county, Arizona and Catron counties, New Mexico, in order to complete a number of closing conditions that remain to be completed, including the delivery of certain material consents, the renegotiation of a material third party contract and regulatory approval.

Oil field operations

The company's crude oil production has averaged approximately 402 barrels of oil per day for the months of October and November, a decrease of approximately 10 per cent since September. The decrease in production is largely caused by the reduction in workover rigs during the fourth quarter, as fewer wells were worked over during this period. At Crossroads, fourth-quarter production averaged approximately 275 barrels of oil equivalent per day, a reduction of 20 boepd since September. During the fourth quarter, the company has focused its efforts on reducing near-term remedial activity in order to maximize cash for use at the upcoming Milnesand infill program.

At Milnesand, the company has lined up the bulk of services to commence its lateral drilling program and expect to have a rig on location in the next few weeks, pending final closing of the sale of St. Johns assets mentioned above.

Barry Lasker, president and chief executive officer of Enhanced Oil Resources, said: "We are disappointed not to have all our approvals for the sale of St. Johns completed by the amended closing date of Dec. 8. Both buyer and seller are currently waiting on third party responses to three preclosing conditions that have not been returned to date. The extension to Dec. 31 will hopefully provide the required time for these to be returned. We thank our shareholders for their patience while we work towards a quick closing."

We seek Safe Harbor.

[alfaspider]

Dec 8th, has come and went............


"has been extended to Dec. 8, 2011,"

[SeaOhToo]

ENHANCED OIL RESOURCES INC. PROVIDES UPDATE ON SALE OF ST. JOHNS ASSETS

By mutual consent, the target closing date of Dec. 1, 2011, has been extended to Dec. 8, 2011, for the previously announced sale by Enhanced Oil Resources Inc.'s subsidiary of all of its right, title and interests in the St. Johns dome and certain related assets, located in Apache county, Arizona, and Catron county, New Mexico, in order to complete a number of closing conditions that remain to be completed, including the delivery of certain material consents, the renegotiation of a material third party contract and regulatory approval.

In addition, the company reported today that it is applying to the TSX Venture Exchange to extend the expiry date from Dec. 4, 2011, to Dec. 4, 2012, related to certain 4,052,600 share purchase warrants entitling the purchase of up to a total of 4,052,600 shares of the company at a price of 40 cents per share. These warrants were issued pursuant to a private placement of 4,052,600 units, each unit comprising one common share and one share purchase warrant, which closed on Dec. 3, 2009.

We seek Safe Harbor.

[alfaspider]

"comeback or bounce play"?

Very right there- but more like manipulation.
Got out at .19 to .21 before it gets ugly.

liabilities 2x the assets.

[alfaspider]

CFW-- Shorted down to 7 cents, panic and stop losses sold off already, and then announce sale or merger at 10 cents by Dec 12th?

any bets?

[alfaspider]

Closing is targeted to occur on, or before, December 1, 2011

[H8ster]

ROAOF (BWD.V) .248 News likely coming Thursday!
Flow rates will most likely come tomorrow.
These numbers should be the final data that is needed for the buyout.

Very strong buy at these levels!

IMPORTANT: 2 TICKER SYMBOLS FOR BOWOOD ENERGY. 1 Canadian. 1 American.
For all intents and purposes, I am using ROAOF's parent ticker, which is Canadian, BWD.V, to chart because of accuracy. ROAOF is a mirror of BWD's PPS, minus currency rates, but does not reflect statistics due to fact its mainly a Canadian company and the majority of trading occurs on the Canadian side of things. Trading this way saves us, on the American side, the fees associated with trading a Canadian stock. :)


Candlestick chart BWD


Candlestick Chart ROAOF

[H8ster]

ROAOF (BWD.V) Bowood Energy. .2513
News from today, Bowood expects to release the results of 2 of their new wells in the next few days. Spring Coulee and Kipp.

The flow rates look to be positive, or they wouldn't be doing the release. Add to that, the 2 investor conferences over the last month has created enough awareness to spark enough volume to turn the stock bullish. Also, if results are positive, the potential for a buyout increases since all Juniors with positive flow rates get bought out by the Majors.

Now is a good time to enter.
For the price, it's the best deal in the Bakken.

November, 28th, 2011
During the third and the fourth quarter to date, Bowood concluded the drilling and completing of the company's Spring Coulee and Kipp wells, and management is encouraged by the early results from these exploration wells. The Spring Coulee well was recently placed on production, while the Kipp well is currently shut in awaiting production equipment. Bowood anticipates releasing comprehensive results for both wells within the next few days.


IMPORTANT: 2 TICKER SYMBOLS FOR BOWOOD ENERGY. 1 Canadian. 1 American.
For all intents and purposes, I am using ROAOF's parent ticker, which is Canadian, BWD.V, to chart because of accuracy. ROAOF is a mirror of BWD's PPS, minus currency rates, but does not reflect statistics due to fact its mainly a Canadian company and the majority of trading occurs on the Canadian side of things. Trading this way saves us, on the American side, the fees associated with trading a Canadian stock. :)

Candlestick chart BWD.V 6 month

[SeaOhToo]

With $30 million in cash EORIF is readt to go!

HOUSTON, TX, Nov. 16, 2011 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that its indirect wholly-owned subsidiary, Ridgeway Arizona Oil Corp. (collectively with EOR, the "Company"), has entered into a purchase and sale agreement with Kinder Morgan CO2 Company, L.P., a wholly owned subsidiary of Kinder Morgan Energy Partners, L.P. (NYSE: KMP), for all of the Company's rights, title and interest in the St Johns dome and certain related assets, located in Apache County, Arizona and Catron County, New Mexico. In addition, upon closing, Kinder Morgan has agreed to amend the CO2 gas sale and purchase agreement with the Company, originally announced on April 20, 2010, modifying the dates of pipeline connection and the date of first deliveries and eliminating the termination fee.

The purchase price is U.S.$30,000,000 for the assets and is subject to certain post-closing adjustments and conditions. Closing is targeted to occur on, or before, December 1, 2011 and is subject to a number of conditions, including the renegotiation of a material third-party contract and regulatory approval by December 31, 2011. SunTrust Robinson Humphrey, Inc. is serving as financial advisor to the Company in connection with the transaction.

Barry Lasker, President and Chief Executive Officer of Enhanced Oil Resources said: "The monetization of St Johns is an important step forward for the Company and will enable an acceleration of our infill oil development and exploitation program within our 27,000 acres of San Andres leases in New Mexico. Ultimately, we anticipate that the cash proceeds and other consideration provided from this sale will help finance our planned CO2 flood at the 5,000 acre Milnesand field and potentially at the adjacent 20,000 acre Chaveroo field. While St Johns offered tremendous long-term potential for the right company, the capital financing risks including our cost of capital and continuing associated carrying costs were considered to be too onerous on a company of our size. The opportunities for oil reserve growth in today's environment both in our San Andres infill projects, our CO2 flood opportunities and other new venture developments are too compelling not to be our immediate focus."

About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an early-stage company, with a principal goal of increasing crude oil and natural gas production through enhanced oil recovery ("EOR") and infill drilling projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose.

[alfaspider]

A KKR Co. led consortium is expected to acquire oil and gas producer Samson Investment Co. for about $7 billion. This would exclude Samson's Gulf of Mexico operations, and would make the deal the biggest corporate takeover by a private-equity firm this year.


M&A activity starting now before the next push?

[alfaspider]

the CFW board on Yahoo has a few accountant types who make estimates of sale and value of reserves. Follow this thread:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=26958&tid=9409&mid=9409&tof=23&rt=2&frt=2&off=1

But there seem to be number of other variables-- Debt to the banks, pref shareholders, costs of EOR, and estimated oil prices?

Have read couple times that "value" is $2.88 per share, but PPS now has been beaten down so far now- that just assume there might be a pop on good news-

Have not been able to get much information on Prize- which was last one Latimer sold off.

[Funstick]

That is interesting. What do you think the sale of the company is worth if it was sold out right? I guess this is the $64 question.

[alfaspider]

here are a couple of posts where I picked up tidbits about Latimer and CFW current management: Latimer sold his last company- and certainly has the resources (NGP capital) to carry this off.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68706328
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68754163
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68700622

Also- there are some posts regarding a C02 pressure line being built near a CFW oil field which should increase value..

One never knows-- but think Latimer and Homier are well connected enough to sell some assets, then sell the remainder at some point for a nice profit. CFW defaulted on bank loans more than a year ago, and banks could have forced BK, but haven't.. But what shareholders might get is questionable.

[Funstick]

Thanks Alfa! Do you think they will sell the assets in chapter 7 or just sell them out right. They are getting down to the wire here.

[alfaspider]

I've noticed few green days for the market when CFW has 600K to 1.2M volume.. but on a day like today, no one would be buying.

I actually tried to buy few at .123 and they quickly jacked up the ask to .124 then .126 for even small lots..

Only going by the previous history of CEO- Latimer, and their comments in AR- that they are near point of selling assets.

They have until Nov 28 to respond to the last de-listing notice which dealt with ongoing losses from operations- (most of which was due to being forced to write down ongoing reserves last quarter)-

Have heard they might reclassify these reserves into the balance sheet for next report- so waiting to see what happens over the next few weeks...

Worst might be pps dropping and pick up some more during tax loss selling?

[Funstick]

CFW ~ Volume is way down today. Not sure this company is going to stay listed either. Your thoughts? Did anyone figure out their true value?

[alfaspider]

CFW- Volume.......

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=69066461

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=69169196

[H8ster]

ROAOF (BWD.V) .307 Bowood Energy, Inc.
Alert: SEPAC next Monday. November 21st. SEPAC Oil & Gas Investor Showcase
It went up 30% after the CEEPIC conference on October 25th.
Webcast from The Canadian Energy Explorers & Producer's Investment Conference

Candlestick chart BWD.V 6 month


IMPORTANT: 2 TICKER SYMBOLS FOR BOWOOD ENERGY. 1 Canadian. 1 American.
For all intents and purposes, I am using ROAOF's parent ticker, which is Canadian, BWD.V, to chart because of accuracy. ROAOF is a mirror of BWD's PPS, minus currency rates, but does not reflect statistics due to fact its mainly a Canadian company and the majority of trading occurs on the Canadian side of things. Trading this way saves us, on the American side, the fees associated with trading a Canadian stock. :)

For more info on the Bakken, see the following:
Alberta Bakken Oil & Gas Info

[H8ster]

ROAOF (BWD.V) Low, low volume. After heavy volume the last couple of weeks, it needs a nap. Traders are holding steady as the SEPAC showcase gets closer. SEPAC Oil & Gas Investor Showcase Add to that, Legacy Oil & Gas's good 3rd Q report, we will be seeing action by mid week next week.

b]Candlestick chart BWD.V 6 month

[H8ster]

ROAOF (BWD.V) quietly begins the week as it prepares for the SEPAC showcase next Monday, SEPAC Oil & Gas Investor Showcase, while it's strategic partner, Legacy Oil & Gas, releases it's 3rd Quarter reports, containing info on it's joint projects with Bowood Energy.

In the southern Alberta Bakken play, Legacy’s first horizontal well at Spring Coulee was put on production in late October.
Legacy’s second operated well at Kipp finished drilling in late September and completion operations/flowback are
continuing with light oil from the formation currently being produced. This well directly offsets the successful Big Valley
vertical well at 10-30-8-23 W4M which has recovered in excess of 245 MBbl of oil and virtually no water to-date. The
Company anticipates shooting a 100 square mile 3-D program in early 2012.


IMPORTANT: 2 TICKER SYMBOLS FOR BOWOOD ENERGY.
Bowood is a Canadian Company, that thru an American acquisition of Road Runner Oil and Gas, kept it's American ticker as well. For those in the US, the company trades under ROAOF. For those in Canada, its BWD. For monitoring, use the BWD Chart.

RSI sitting perfectly at 54.28
10 Day SMA at .333
30 Day EMA at .303

Candlestick chart BWD.V 6 month


Candlestick Chart ROAOF 6 month



Candlestick Chart BWD.V 2 Year

[alfaspider]

CFW Insider Transactions: ( see 1 and 2 charts below)

Yahoo lists that Carlson still holds 175,780 "free" shares from their transactions of October 2010 and March 2011? (Does look like Carlson sold enough to cover transaction costs as well).

And Johnson still holds 1.5 million shares?

Is there any way to update/validate these numbers?

1. Major current holders:

CARLSON CAPITAL L P N/A Mar 3, 2011
JOHNSON S JEFF 1,590,763 Jul 2, 2010
RICKETTS MICHAEL J 294,121 Jul 2, 2010


2. Most recent insider transactions..

Mar 3, 2011 CARLSON CAPITAL L P Beneficial Owner (10% or more) 624,220 Indirect Sale at $0.64 per share. 399,500
Oct 18, 2010 CARLSON CAPITAL L P Beneficial Owner (10% or more) 800,000 Indirect Purchase at $0.46 per share. 368,000
Jul 2, 2010 JOHNSON S JEFF Officer 11,902 Direct Disposition (Non Open Market) at $0.61 per share. 7,260
Jul 2, 2010 RICKETTS MICHAEL J Officer 2,645 Direct Disposition (Non Open Market) at $0.61 per share. 1,61

[Stockguru55]

I agree the properties are enormuns opportunity and the drilling should be done on the first hole with Cimarex by end of year so they will have some definte in crease in revenue if they and cimarex were correct in drilling program.

[H8ster]

ROAOF (BWD.V) taking a small, yet predictable dip. Good time to consider getting in.
Remember, BWD (Canadian) is the ticker to follow. ROAOF is the ticker to trade if you're in the US. All charting should be done thru the BWD ticker.

Candlestick chart BWD


Candlestick Chart ROAOF



BWD.V - Daily Candlesticks 2 Year Chart

[alfaspider]

Jim Cramer missed CFW?

Double bottom yesterday with November 3rd?

[ChartPoP]

Think UTICA SHALE!

[ChartPoP]

TXS...

[OilStockReport]

Jim Cramer's Latest and Greatest Energy Picks

We always like to listen to what the big name analysts have to say. Recently, Jim Cramer released his newest energy stock picks, and there a few that we like too. If you aren’t invested in these stocks yet, start your research here!


Find stock picks here: http://turnkeyoil.com/2011/11/07/jim-cramers-latest-and-greatest-energy-picks/

[alfaspider]

Yes- 11 to 12 cent range may be OK, but holding to buy shares in mid- late December if tax loss selling pressure increases...

Worry some that energy prices increasing when europe is falling back, and US is not out of recession area? Actually expecting this bear market rally to pause for a while before EOY. JMHO

[OilStockReport]

Peak Oil & $225 Oil by 2012 Predicts CIBC Economist Jeff Rubin

FULL VIDEO WATCH HERE:

Jeff Rubin is a Canadian economist and author. During a stellar career with CIBC World Markets he made a name for himself with prescient predictions. He has a knack for generating controversy, being mocked by peers only to be proven correct as history unfolds.

Jeff was born in 1954, and after receiving his B.A. from University of Toronto and his Master's from McGill, both in Economics, Jeff began his career with the Ontario Treasury Department. There he projected future interest rates.

In 1988 he switched to the private sector, joining a brokerage firm then known as Wood Gundy. The Canadian Imperial Bank of Commerce took over Wood Gundy, renaming it CIBC Wood Gundy and later CIBC World Markets. Jeff worked his way up the ranks there and became the Chief Economist after just four years with the company. He worked in that role from 1992 until 2009.

During that tenure Jeff left a trail of accurate predictions. He correctly predicted fluctuations in interest rates and the value of the Canadian dollar. He first gained fame in 1989 when he predicted a 25 per cent decline in Toronto real estate prices, and a subsequent serious decline in Ontario's entire real estate market.

Jeff was also one of the first economists to accurately predict soaring oil prices in 2000. At that time, Jeff said that oil prices would hit $50 (U.S.) a barrel within five years. Although other economists balked, time proved him correct.

Jeff's track record has garnered national headlines and raised key financial concerns for a national and international audience. Large fund managers in North America, Europe and the Far East have been wise enough to heed Jeff's words of wisdom.

In 2009, Jeff resigned from CIBC World Markets to focus on writing and public speaking. He authored the best selling 2009 book Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization. He forecasts that the price of oil will reach $225 a barrel by 2012, thanks to increasing demand and decreasing affordable supply. Jeff says that without affordable oil, the world will be forced to de-globalize and re-discover local, autonomous economies.

His name has since persisted in headlines, and he is known as a dynamic and engaging speaker, always controversial and fresh-minded. Jeff believes the new world will be more local and less global, with a reinvigoration of local cultures and customs.

Jeff has also written popular columns and commentary for the Globe and Mail (a regular column called "Ahead of the Curve"), the New York Times, the Wall Street Journal, Washington Post, USA Today, Financial Times, BusinessWeek, Newsweek and The Economist. He makes regular radio and television appearances on CBC, ABC, CBS, CNN and CNBC.

Jeff has been named Canada's top economist 10 times, and has had 10 number one rankings by international economists, such as in the Brendan Woods annual survey.

Jeff lives with his wife, children and dog in Toronto. He is also an avid fisherman who enjoys a good fishing analogy.

Video Source:

Biography Source: http://www.thegreeninterview.com/jeff-rubin-bio

Climate Change: http://wwf.ca

WWF's mission is to stop the degradation of the planet's natural environment and to build a future in which humans live in harmony with nature.

[OilStockReport]

New high volume speculation Kentucky oil & gas play CAMS

Some recent pictures of operations and DD: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68763401

Chart may be bottoming out. Great swing trade potential from here if they demonstrate a means to develop these wells.

[OilStockReport]

Great read AS and interesting points. Many people think just cause oil is selling at high prices that the margins are way up. In fact everything from the cost of labor to even C02 as you pointed out increases along with the price of oil.

Certainly there is still a lot of upside for oil E & P companies but the EOR economics are critical to the success. I think the most likely scenario here is that they will push for the sale, the reserves and NOL option is very attractive for the right company and with Latimer's connections this should not be difficult.

[OilStockReport]

All very interesting points to help make the case for this one as a comeback or bounce play. I think it will find a base here somewhere soon maybe even in the $.11-.13 range. The risk / reward scenario makes it very attractive based on his track record alone.

[alfaspider]

Thanks-- will read further. Had heard that CO2 reduces viscosity, and may enhance EOR- but this post contained info regarding extra costs of CO2..

------
" All of the best EOR projects in the Permian Basin have been implemented. Those that remain are more economically cnallenging. The cost of CO2 has risen dramatically due to demand and the rise in oil prices. It takes 10 to 15 mcf of CO2 @ $2.50 to $4.00/mcf to produce a barrel of oil and the operating costs associated with a CO2 flood are also extremely high due to the corrosive nature of CO2 and the need for a recovery plant to strip the produced CO2 for re-injection. Add to that the hugh up front capital requirement to implement the project and the long delay between beginning injection and corresponding oil production and you can see why this has always been a game played by Major oil companies with deep pockets and all the necessary technical skills.

All that said, I'd be surprised if anyone could pay $100k per net producing barrel for these assets. Whether the "reserves" are technically there or not is not really the issue here, its more of a matter of the economics of extracting the oil. That is why no successful buyers have come forward for these assets even when oil was selling north of $140/bbl.

There is still some hope of a sucker coming forward that thinks they are smarter than the previous operators and can make a silk purse out of a sow's ear. I've seen it happen many times over the years. I just wouldn't bet my money on it. The other possibility is a public company paying up to buy the company just so they can put some reserves on their books and possibily use the NOL that Cano has."

-------
KEY PHRASE: "this has always been a game played by Major oil companies with deep pockets"- so Latimer sells it to larger Co with pockets, JMHO--..

Afraid I don't know enough about the practical economics of Water vs CO2- so reading and trying to evaluate.. Only Key point might be that if spur was constructed near the Cato field- it might make CO2 more available and cheaper to EOR the Cato field?

have to see- and not sure if Latimer or Homier could tell you anyway?

[alfaspider]

"Latimer's last gig": From his bio Statement..

"He was a director of Prize Energy and its audit committee chairman from October 2000 until its acquisition by Magnum Hunter Resources in March 2002, and he continued as a director and the audit committee chairman of Mangum Hunter until October 2004."
--------
So he got in after the dot.com bubble busted in 2000, shuffled papers/contracts until selling it in 2002, then stayed for another 2 years?
Sound like a repeat with the bust of the housing bubble?

Chart people are getting excited about the 5th wave and double bottom?
Was wondering if could get some for 5 cents in December, perhaps not... Compliance deadline is November 28th... and results are due in January........

[OilStockReport]

I have had some experience with both gas injection and water flooding. I think it depends more on where the play is and what has been best known for working in that geological picture.

Some key points about gas injection:

Gas reinjection is presently the most-commonly used approach to enhanced recovery. In addition to the beneficial effect of the pressure, this method sometimes aids recovery by reducing the viscosity of the crude oil as the gas mixes with it.

Gases used include CO2, natural gas or nitrogen. Air cannot be used to repressurize the reservoir because the oil will quickly catch on fire.

Oil displacement by carbon dioxide injection relies on the phase behaviour of the mixtures of that gas and the crude, which are strongly dependent on reservoir temperature, pressure and crude oil composition. These mechanisms range from oil swelling and viscosity reduction for injection of immiscible fluids (at low pressures) to completely miscible displacement in high-pressure applications. In these applications, more than half and up to two-thirds of the injected CO2 returns with the produced oil and is usually re-injected into the reservoir to minimize operating costs. The remainder is trapped in the oil reservoir by various means.

Some key points about water flooding:

Flooding an oil field with extraneous water has been a widely accepted method for increasing a reservoir's recovery since the 1950's, but to the uninitiated it may seem odd. After all, water production is a bad thing; it increases lifting costs, puts more strain on equipment, and may even prevent flowing wells from flowing. Plus, the produced water must be dealt with in an environmentally sound way, which also adds to the operating costs.

So why add water? For two reasons: First, injecting anything into a reservoir will increase the reservoir pressure, and second, water and oil don't mix. This second reason may again seem odd, but because they don't mix water, under higher pressure, will displace the oil it contacts.

So what does this mean? First we need to understand that most oil reservoirs are solution gas drive reservoirs*. This means as the oil is produced the reservoir's pressure is reduced and the gas that was held in solution begins to breakout and expand, thus "driving" the oil towards the producing wells. This is a familiar process we see when opening a bottle of soda (Mentos added for emphasis).

The problem with a solution gas drive reservoir is when the gas breaks out of solution it is free to flow to the producing well and be produced, and once the gas is produced the reservoir's energy is lost. Typically a solution gas drive reservoir will only recover 5-20% of the reservoir's original volume of oil leaving a large portion behind.

By injecting water in a controlled manner, the loss of reservoir pressure can be controlled and reversed. Water is injected into dedicated injection wells strategically located throughout the reservoir, and the water itself can be used to displace the remaining oil towards the producing wells. If properly designed and operated, a water flood can double the reservoir's oil recovery.

Even with double the recovery (10-40%), we are leaving large volumes of oil behind in these solution gas drive reservoirs, and with the ever-growing oil-thirsty economies around the world we need to do better. This is where enhanced oil recovery (EOR) techniques come to play, but that discussion is for another day.
This all sounds great and water flooding has been used successfully for decades, however, it is important to take care to design and operate the flood appropriately, otherwise all the bad things we mentioned at the beginning may be all you get. There are may factors to consider when designing a successful water flood including:

reservoir permeability (both absolute and relative)
beginning and ending fluid saturations (oil, water and gas)
reservoir heterogeneity
oil gravity and viscosity
water source and compatibility
formation clay content
depth and lifting costs

But if done right, a well run water flood will significantly improve oil recovery and produce attractive returns for many years.

[OilStockReport]

Seems he is likely just putting together the right deal for CFW and its shareholders. You said it took him 2 years though last time?

[OilStockReport]

Seems to want to grow some legs here for year end. The company seems to have a good position going into 2012 from here. It still has a speculative edge here but a 50% + move is not uncommon for deals like this.

[OilStockReport]

Spread the knowledge my friend. Together we can be informed and make smart investment decisions.

[alfaspider]

Look at Latimer's background and relationships to NGP- Big bucks there? and they "invest" ?


----------
Latimer is still listed on BOD of NGP Capital Resources ....... that "invests".....

NGP Capital Resources Company is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. We principally invest in energy-related private companies and from time to time, we may also invest in public companies. We invest primarily in senior secured and mezzanine loans according to our business plan and in some instances receive equity interests in portfolio companies in connection with such investments. Our manager is NGP Investment Advisor, LP, an affiliate of NGP Energy Capital Management, L.L.C., an Irving, Texas-based leading investment firm with over $9.5 billion of cumulative capital under management since inception, serving all sectors of the energy industry.

Board of Directors ----------------
Kenneth A Hersh - Chairman
David R Albin
Edward W Blessing
James R Latimer III

[alfaspider]

Last couple of weeks have been good for biofuels (PEIX, BIOF) and some oils, but not for CFW.

Latimer's last deal took 2 years- so not expecting any short term news here.. Lots of buying @ .60- .80 in March/April- so could see lots of dumping in December?

Have read different things about CO2 costs for EOR- Do you take it as cheaper than water flooding? Seems the decontamination of pumped water and reduced recovery would make water flooding less efficient in the long run? (assuming the pipeline spur is a legit news item?)

[OilStockReport]

Yeah I was thinking they may of been talking about a minimum share price which a split would help. Losses are only fixable through selling assets or getting a capital injection to develop their holdings. Going to be interesting to see what Latimer does as I don't see him taking it to Pinks either.