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hi brent, good morning. i have marked your very nice forum.
Insider buying by the CEO, usually a good sign.
Dec 21/06 Dec 21/06 Rumak, Fred 10 - Acquisition in the public market Common Shares 2,500 $0.265
Dec 21/06 Dec 15/06 Rumak, Fred 10 - Acquisition in the public market Common Shares 30,000 $0.245
Dec 21/06 Dec 14/06 Rumak, Fred 10 - Acquisition in the public market Common Shares 10,000 $0.250
All figures in Canadian funds.
You're miles ahead of me already. Keep up the good work.
Vic,
I just copied and then put in PAN.V . I need to study charts better.
Brent, you're getting pretty handy at the charts. Nice job!
You show a 3 day RSI...Any way to default it to 14 day? Just a suggestion.
Thanks,
Vic
Honest,
Thanks you
Brent
Howdy Brent--I think that was flo-thru, has to be spent in Canada. Pan still has cash, but wants to preserve 'hard dollars' for U.S. lab work, etc---
H.I.,
Sounds good.
Found this just now.
http://biz.yahoo.com/ccn/061205/200612050283217340.html?.v=1
Pan pretty much on--or ahead of--schedule and under budget. I talked with Fred last week--he was very upbeat.
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
H.I., thanks for the Paradox article. Please feel free to email me any response to PM's if you think it doesn't belong here on the Panterra board.
Looking forward to hearing from you after your trip to the Paradox basin area.
Vic
Thank you H.I. e/
OT! You're welcome.
The following link has very little (as in none!) to do with pan. It does touch on hydrcarbons, in very roundabout way. But I find it quite interesting, I know these guys and was there--on my next trip, plan to be more over towards Paradox-----if I learn anything there, Vic, I'll share it with you. Got your pm but anable to respond with one. I'll try to meet with pan guys in dec---trying to time it to when i can get away and a guy from van will be in calary.
By the way--Charlie Steen or Mi Vida can be googled for fascinating story.
http://www.stockinterview.com/News/07252006/Utah.html
H.I.
Welcome and thanks for the post.
Brent
The following is a dave pescod interview with sprott---it does not mention pan in any way, but I'd say certainly pertains to it---pans target is gas and they gotta sell the stuff----plus, I'm bullish on commodities in general, wary of the u.s. dollar, and since I agree with what this guy says--He's gotta be really smart!
Of personal interest to me is the mention of Paradox Basin---I was there last yr and might be working there again, in about 10 days---
"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:
H.I., welcome aboard and thanks,
Vic
(Brent got your email too).
Honest you are now a mod on here.
Thanks
Brent
Brent---
I have replied to tr8dervic re your p.m.----via email---i can't p.m. as I refuse to pay to b.s. when i do so much of it for free----tr8dervic, please forward email to brent----
PanTerra Closes Private Placement
Wednesday November 15, 4:09 pm ET
CALGARY, Nov. 15 /CNW/ - PanTerra Resource Corp. (the "Company") is pleased to report that it has closed its recently announced non-brokered private placement of flow-through financing which realized gross proceeds of $2,200,189.25. A total of 6,286,255 flow-through shares were issued at a price of $0.35 and are subject to a four month 'hold period'.
The Company will use these proceeds for its ongoing projects at Shell Lake, Foam Lake and Moose Jaw in the province of Saskatchewan, which are now entering the evaluation and completion stage of Phase One.
"As a result of this closing, Brickburn Asset Management Inc. (one of the placees), is considered an 'insider' of the Company as defined in the applicable securities legislation. Brickburn acts as a portfolio manager to a number of flow-through limited partnerships, and its ownership of the Company's securities are held in that capacity, with the flow-through limited partnerships being the beneficial owners of the securities."
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
--------------------------------------------------------------------------------
Source: PanTerra Resource Corp.
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
--------------------------------------------------------------------------------
Source: PanTerra Resource Corp.
kcjones,
Thanks for posting the PR
Brent
PanTerra Announces a Change in Directorship
CALGARY, Nov. 6, 2006 (Canada NewsWire via COMTEX News Network) --
PAN - TSXV
PanTerra Resource Corp. (the "Company") reports that James Barker has joined a Multi- National Assurance and Financial Advisory firm as 'partner' and the by-laws of that firm prohibit their insiders from sitting on the Boards of 'for profit' companies. As a result, Mr. Barker regrets that he has to resign from PanTerra's Board immediately. The Board members, Management and Staff thank Mr. Barker for his service to PanTerra and wish him well in his future endeavors.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
SOURCE: PanTerra Resource Corp.
Fred P. Rumak, P.Geol., President and C.E.O. at (403) 261-5900, Email to: fred@panterraresource.com
Copyright (C) 2006 CNW Group. All rights reserved.
PANTERRA RESOURCE CORP. ("PAN")
BULLETIN TYPE: Halt
BULLETIN DATE: November 2, 2006
TSX Venture Tier 2 Company
Effective at 11:20 a.m. PST, November 2, 2006, trading in the shares of
the Company was halted at the request of the Company, pending an
announcement; this regulatory halt is imposed by Market Regulation
Services, the Market Regulator of the Exchange pursuant to the provisions
of Section 10.9(1) of the Universal Market Integrity Rules.
TSX-X
HonestInjun,
Yes I will correct that. Still waiting for more money to come in to buy into Panterra. Tell him hi for me.
Brent
I spoke with fred briefly yesterday, plan on talking more indepth tomorrow--he'll be in the office all day----these guys are dedicated and hardworking, at least that's the impression I always get. I'll see if he's got anything he wants disseminated. But items of material interest have to be put out re exchange rules--to protect investors---so doubt I'll have anything too earthshattering to report.
I told him about this site, he said thanks to you brent for putting it up and asked that his email address be corrected. Fred is quite accessible to shareholders.
You currently have fred@panterraresources.com
you need to drop the last 'S' the correct one is
fred@panterraresource.com
If you do drop in say hi to Fred for me he knows who I am now.
Thanks for your information and your work here.
Brent
I met Fred some time ago, met Herve later. Herve and I have several mutual aquaintances--like your friend at terra tech, it's a small world--funny when you get into this stuff, how many people know people you know. I was out in vancouver this spring, cambridge conf, corillian mining deal. Was staying with a friend with mineral interests in u.s.--told him I wanted to meet up with a miner from yellowknife, n.w.t.----he said he'll be at party on boat tonight---if you don't want to go to that (I don't drink) I'll have him call you tomorrow. Next day, I talked with the other guy for maybe 30 minutes, he drug out his maps, showed me assays, 43-101 stuff---budget, schedule---helps to know people---
I havn't contacted them since I stopped in at office---don't see any reason to, know they're just taking care of business---I may be in Calgary in next week or two, if so might drop in on them--at any rate, they get pertinent news, they'll put it out.
HonestInjun,
I found out about this company from my friend who worked for Terra Tech and did work for the company. He is friends with Fred but no insider info from him. He just told me the company was doing it right. Didn't know until I talked to Fred that he was having my friend do all the work.
Funny huh.
You seem pretty connected. I have not talked to Fred in awhile.
Brent
Why, shore! They are drilling up a storm. They are WAY thrifty with stockholders dollars. Assembly line approach. Ain't tested nothin'--punch her down, case 'er, and move on. Refuse to pay hi mob and de-mob costs just to test one or two for pr.
Gonna drill a bunch anyhow---and got the money in the bank to do it. Herve is operations guy and knows how to stretch a buck. Rig haulers wanted 100k to move in second rig--herve found a farmer with a couple underutilized semi-trucks---42k and it's on location. Herve's got pipe and mud stacked in farmers yards half way accross sask---they deliver as needed and are happy to get the $$.
Fred showed me an email from a small town dentist (my paraphrasing) Dear sir: We are totally thrilled to see you come in here, love the way you are working with and employing the locals, admire your attitude. Should any of your employees encure a tooth problem that cause's discomfort or interferes with work--send 'em in and i'll fix 'em up--free of charge---
The fluid samples they sent south 'made gas' on the way. They'd previously spent part of the 'rainy season' in salt lake city--meeting with and learning from terra tech (sp)
The u.s. is ahead of canada on shale gas deveelopement, that is why cores are sent to either salt lake or texas--they want the best experiece they can get. They are more interested in 'best results/input' rather than 'quickest news'
If you're in a hurry--or need weekly reassurance in form of updates and nr's--go someplace else. If you want in on a play with a couple guys who have got their sleeves rolled up and are taking care of business and getting most bang for the buck---you might like 'em.
As i've said before--this is not a 'maybe' play. Either it works, or it don't.
Basically--they gotta prove 2 things.
1. there's gas there
2. it can be recovered economically.
Prove 'em both---and it's sold. (In my opinion)
HonestInjun,
Thanks for your posts and your time. Much appreciated.
Anything you wish to share about your time with Fred and Herve?
Brent
Unconventional energy---
I am following several plays--encana has changed it's focus to strong emphasis on unconventional gas---I am primarilly following the little guys who eca is interesed in or who are jv'd with eca--
By the way--u.s. is ahead of canada on shale gas expertiece, which is why herve and fred have spent time in salt lake with terra teck and also why cores and samples from pan have been sent either to texas or salt lake---even tho it will increase the lag time in getting results--
below is article on unconventional--
Adam Michael
02 Oct 2006 at 12:26 PM EDT
NEW YORK (Minyanville.com) -- As the world’s thirst for energy continues to grow, unconventional resources will play an increasingly more important role as a source of natural gas and oil.
So what are unconventional energy resources?
Unconventional natural gas consists of tight gas, shale gas, and coal bed methane. Oil sands make up the largest source of unconventional oil. These unconventional resources represent an increasing proportion of oil and natural gas production each year.
What's out there?
Canada’s oil sands in northern Alberta are probably the best example of unconventional oil, and are estimated to contain 1.7 Trillion barrels of oil. 174 Billion barrels, or about 10%, are deemed recoverable with today’s technology, and make up approximately 15% of the world’s proven reserves.
One of the best examples of an unconventional natural gas resource is the Barnett Shale where an explosion of drilling activity has occurred in North Texas. Before more advanced drilling technologies, the Barnett Shale was not commercial. The application of technologies like horizontal drilling and multi-stage fracing have helped E&P companies unlock the Barnett Shale, and made it extremely commercial.
With improvements in drilling technology and higher energy prices, unconventional plays are becoming “more conventional”. But not all unconventional plays will become commercial. There are many small E&P companies touting their acreage positions as the next big unconventional play.
Now that I have highlighted a couple of examples of unconventional plays that have worked, let’s look at some characteristics you should look for in some of the smaller E&P companies with unproven unconventional assets.
Existing production to provide cash flow: This is more important for the smaller cap names in the E&P space. Production = cash flow which allows an E&P company to pay the bills, and develop unconventional assets. Without production, E&P companies must tap the equity markets to finance their exploration programs.
US-based assets: I prefer to invest in companies with assets in the United States. That doesn’t mean there aren’t great foreign assets outside the United States. I just prefer to eliminate county risk when possible. Investing in unconventional energy assets is risky enough.
Large underdeveloped unconventional assets with little value contribution to stock price: I refer to this as the embedded optionality that may be present in an E&P, but gets little value from Wall Street. As an E&P progresses in proving up its unconventional assets, the value of its stock can increase dramatically.
Partnerships with larger E&P companies on unconventional plays: Often, a small E&P puts an acreage position together but does not have the cash flow or expertise to develop/test the asset. I like to see these smaller E&P companies partner up with larger E&P companies to provide both cash and operating experience. Partnering can also provide some validation of the potential of the unconventional assets.
Strong management team: A solid management team and board of directors will tell an investor much about and E&P before you ever take a look at their assets. I like to see a diverse background form the board of directors as well as independent chairman, and strong executive experience in the areas the E&P company operates.
Now that I’ve highlighted a few characteristics in smaller, lesser followed E&P names with unconventional assets, lets look at a real example of a company I follow called The Exploration Company [Nasdaq:TXCO]. The Exploration Company is a San Antonio-based E&P company with substantial unconventional assets in the Maverick and Marfa basins (South Texas). Let’s see how they do using my checklist:
Existing production to provide cash flow: TXCO has a rapidly increasing production profile that is currently about 80% oil and 20% natural gas. Oil production has increased from just over 1,000 barrels of oil per day (BPOD) at the end of 2005 to 2,400 BOPD as of the most recent company operations update. This production will provide TXCO steady cash flow as it attempts to prove up some of the other assets in its portfolio.
US-based assets: All of TXCO’s assets are located in the continental United States, with the majority of those assets located in Texas.
Large unconventional assets with little value contribution in stock price: TXCO has several large unconventional plays that could be significant if proven commercial. The first unconventional asset is the Pearsall Shale Gas Resource play in the Maverick Basin. The Pearsall Shale is an unconventional gas play that is over pressured but not too deep. This formation has produced some incredible gas wells with the largest flowing over 260MMcfd (Million cubic feet of gas per day). Historically, wells have average about 1/2Bcf (Billion cubic feet of gas), but that is without 3D seismic, or advanced drilling techniques such as underbalanced and horizontal drilling, fracturning/stimulation. Today, TXCO has 3D seismic on all of its Pearsall acreage, and plans to use some of the latest drilling technologies and technical expertise from its partner, Encana [NYSE:ECA].
The Exploration Company also has one of the most exciting unconventional oil plays I have seen in a long time in its San Miguel Tar Sand Resource. That’s right, we have oil sands in Texas…and lots of it. Mobil was the first to try and develop the Texas oil sands in the 1960’s but it was Exxon and Conoco that had the best results between 1977 and 1982 on what are now TXCO leases. These pilot wells showed that the oil sands were producible with recoveries of 40-55% using steam injection, but cost and transportation were both issues back in the early 1980’s. The Company now feels that there is a total of 7-10 Billion barrels of heavy oil in place basin wide. Using more modern technologies similar to those at Cold Lake (a proven heavy oil project in Canada with similar characteristics), the company believes its tar sands play is commercial at $50 oil. I will also note that 70-80% of the heavy oil refining and coker capacity is less than 150 miles away, owned by another San Antonio-based company many of you know well: Valero [NYSE:VLO]. At present, most of Valero’s heavy crude is imported (think Venezuela), so I imagine they would be more than happy to take all the products TXCO can ship them. While it is still early, this is a perfect example of an embedded call option in TXCO that gets little to no value, but has enormous upside.
The last big unconventional asset TXCO owns is another shale gas play in the Marfa basin. Currently, there is no production in this area, but others that have been moving in to scoop up acreage include Carrizo [Nasdaq:CRZO] and Quicksilver [NYSE:KWK]. Two wells are currently planned for in this year’s operating budget, but no production will be possible as there is currently no infrastructure in place should the wells work. This is probably too early stage of a project to assign any value to, but is still another embedded call option investors should be aware of.
Partnerships with large E&P companies on unconventional plays: The Exploration Company has partnered up on all three of their unproven unconventional plays I detailed above. Last year, Encana paid TXCO $80 Million cash for interests in the Pearsall Shale play which many believe confirms the potential in the Pearsall Shale. Encana will also bring its invaluable unconventional expertise to the project. Also of interest, Encana made a rather large CAPX cut earlier this year, but the Pearsall Shale Play with TXCO was not cut (many other new projects were).
On the San Miguel Oil Sands project, TXCO has partnered with Pearl Exploration [TSX-V:PXX], an E&P out of Canada with oil sands experience, in an attempt to leverage their experience in developing heavy oil projects. TXCO and Pearl have drilled the first two pilot wells and testing is underway. Plans are to drill up to an additional 37 wells by the end of the year during the first phase of this heavy oil project.
On their last unconventional play in the Marfa basin, TXCO partnered up with Continental Resources, a well respected private E&P company with a long history operating in unconventional resources. Continental Resources will act as operator, having paid an undisclosed sum for a 50% working interest.
Strong Management Team: The Exploration Company has a team of proven oilmen that have been operating in South Texas (Maverick basin) for years. Jim Sigmon, the company’s CEO, is an engineer by background and has been with the company for over 20 years. Jim has done a great job of assimilating a team with decades of experience and knowledge. TXCO’s board does have an independent chairman as well as other directors with different but complementary backgrounds.
Investing in unconventional energy companies can be very rewarding if you do your homework. Hopefully, the checklist I provided will help.
Gentlemen:
I trade canadians almost exclsively. (I am u.s.) I also know Fred and Herve and hung around their office for a couple hours, last time I was in cowtown.
The 5 letter symbol is nadaq---pink sheet--whatever--who cares. A poor place to get filled, sometimes don't trade for days---
The 3 letter symbol is pan. You can go right to panterra on stockhouse.com by typing in pan. A good site for canadian stocks.
To get info on yahoo finance, you would type in pan.v The V signifies that it trades on vancouver exchange.
A decent u.s. broker should be able to get you filled on canadian exchanges for no higher brokerage cost than buying u.s.
The irritant is that you always have to pay a small 'currency exchange' fee---you're paying in u.s. $ and somebody has to settle in canada in canadian $$.
I have tried to get around this by opening can acct. Due to money laundering, tax dodging and terrorist activities, they tightened it up to where a private investor can't.
So--I bought a canadian co--in ontario. By the time I got that deal done--they'd changed that law!
Anyway, you can figure on paying a small extra charge.
Also----the real cheap online traders will figure out a way to put the screws to you on trading candian---either tell you canadian trades have to be 'broker assissted' or charge you a tariff on 'large number of shares' on the pennies.
Pennaluna and co is oldest brokerage in idaho. Mining, resources, are kinda their specialty.
They are full service broker----They also have online penntrade.com
I use them. They are excellent. Plus, you can put your trade in--in canadian dollars. With other brokerages---my full service one---i have to put trade in in u.s. $$---if exchange rate changes, so does your bid.
Penntrade has far better execution than the full service---I do use the full srvic for some because of my broker--the guy is X mining engineer, an outstanding individual, and does tremendous amt of research. We are friends and 'network'---
For stock depth and much other info, i use new.stockwatch.ca a paid service. About 67$ u.s. a mo.
But well worth it, if you trade much.
I did not post here for some time---as i said previously, i tend not to suffer fools and scammers lightly and spent some time in ihub jail. Hoop de do. Not too intimidating, when you visited a real one or two. Regards to all. H.I.
Kevin,
It is a Canadian stock so I guess that might explain it. If not I really do not know. I do know that normally the PANNF symbol does not show any volume during the day nor any change in price.
Hope that helps. There are those who posted when I first started the board that told how to invest and I do know a few have bought. tr8dervic has bought and he is a great resource.
Brent
Hi Brent,
Why does the stock chart on the board show movment, but level II does not? Kevin
Vic,
Thanks for posting the PR.
Brent
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
--------------------------------------------------------------------------------
Source: PanTerra Resource Corp.
Better volume and price today.
KC
kcjones,tr8 and Honestinjun,
Nice job on the DD and PR posted.
Honest I like the way Fred and Herve think using locals and saving money and trying to do things the right way that is why after talking with Fred twice by phone I put the board up.
I need to invest soon as I get some more money freed up. Seems like a nice time but am sure the PR will cause some price and volume movement tomorrow.
Thanks again guys for all your help and work here.
Brent
Say, you guys are on the ball with the nr!
I stopped in calgary----some thoughts:
Herve is in charge of operations---really tries to get most bang for shareholders buck---
Rig movers wanted 100k to get second rig from red deer--Herve got it delivered by farmers with own semis for 42K--
He's got pipe and mud stockpiled accross sask--farmers del it on call---putting money into local hands and keeping costs down---VERY goood pr with locals--they try to hire local whenever they can
The drilling and testing is 'assembly line' approach---mob and de-mob cost are high---they will test a bunch at a time, when they can spread the costs to many holes---
The coring slows things down and costs more--but they think it's very important---
The cores are sent to u.s. because they have more experience and expertiece---it's a hassle because of 9/11 issues---are shipped in a tube that could (conceivably) be a rocket and are real 'question makers-some stuff goes to terra tech (sp) in utah--i think schulumberger just bught them out? and some is going to texas--
As I see it, pan has to do two things: prove the gas is there.
Prove it can be recovered economically.
I really like their approach. The whole resource sector is getting beat up currently---they are not doing anything for fluff, are spending their money as thriftilly as possible. They have the cash in the bank to complete this program.
Remember--this is 1mm acre exploration permit. With the 60 hole program, it's still just sampling once per 16,000 acres--this is an awful lot of ground to look at!
Oh--hey---as a side deal, they got interested in another piece of property--bought it---have since sold half what they had for more than they paid for entire thing--have the new guys paying to drill it--and pan will operate---and are entitled to make small profit from doing that also---I've been playing jrs for a long time----it takes this kinda thinking--and some luck-----to stay alive and grow into something---
PanTerra Doubles Potential Recoverable Gas Reserves
CALGARY, Sep. 26, 2006 (Canada NewsWire via COMTEX News Network) --
PAN - TSXV
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.
SOURCE: PanTerra Resource Corp.
Fred P. Rumak, P.Geol., President and C.E.O. at (403) 261-5900, Email to: fred@panterraresource
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
--------------------------------------------------------------------------------
Source: PanTerra Resource Corp.
cgyflames,
Welcome and wish you well. Guess as news and updates come we will all have more insight.
Brent
Introduction...
Hey all, I just stumbled on this site. I work as a laborer in the oil fields and have a small amount invested in Panterra. I dont have anywhere near the business knowledge that any of you have so i'll probably stay pretty quiet! I Looking forward to some insight from all of you.
Wouldn't that depend on depth? I doubt that would be near surface...? I guess that cost would play a large role there.
Vic,
Thank you
Brent
Brent, The report is on Sedar now.
The o/s on 6/30/06 is 46,510,872.
Warrants outstanding are 8.4 mil @ .15 to .25. which may be a drag on the pps in the near/intermediate future.
12 wells have been drilled and cased as of the report date.
Cash is a comfy 6+ mil after warrant conversions so far this year.
I will try to link the pdf download here but it may not work:
http://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00005105&fileName=/csfsprod/....
Vic,
I did not see it on Sedar as of 11:11pm Mountain time so guess maybe tomorrow.
The stock went up 16% on very small volume today. First time I have seen bid ask and volume on my Scottrade account for it.
Wish I had some ready cash. Still waiting for SPRL and CDCH to buy some PANNF. Oh well.
Hope you are well.
Brent
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