Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The Lehrer #1 well (Sharon 8% working interest) is currently producing at 1.3 Mmcf/d and the Lehrer #2 well (Sharon 9% working interest) is producing at 1.1 Mmcf/d.
Yes these are the two wells. I assume they still have the interest.
Thanks,
I don't have an answer. Maybe they have changed what they are calling the wells. I did find a reference to two wells that were drilled online with Hound Dog #1 where Sharon had only 8% participation. Don't know if these were ever referred to as Mustang. Bobwins
SHARON COMPLETES DRILLING OF DEEP WILCOX GAS WELL IN TEXAS
Sharon Energy Ltd. announces that the initial exploration well on the Hound Dog prospect has been drilled and logged to a depth of 15,662 feet. The well is currently being cased and
completion and tie-in operations are anticipated to commence within the next four weeks.
The Company reports multiple gas shows and the evaluation of the logs confirms the Company’s geophysical interpretation of the prospect and indicates 10 Wilcox intervals with over 200 feet of prospective gas pay. Sharon holds a 22.5% interest in the well.
In 2003, Sharon participated in two Wilcox completions on trend with the Hound Dog well. The Lehrer #1 well (Sharon 8% working interest) is currently producing at 1.3 Mmcf/d and the Lehrer #2 well (Sharon 9% working interest) is producing at 1.1 Mmcf/d.
Sharon is a junior oil and gas company currently conducting active natural gas exploration programs in Texas, Wyoming and Alberta. Sharon is currently focused on exploring for natural gas in Alberta and deep Wilcox gas in Texas.
Bob do you have an answer to this question. I followed back their PR's and it relates to at least 2 Wilcox wells. I knwo they made some property sales?
This is going to be a long term success story. For the next two years, we are going to hear about continuing success at Hound Dog and Hancock wells. Because of the multiple zones and the companies(Diaz and Sharon)conservative approach, they won't hype big numbers but for the size of these two companies, these are BIG wells.
Every 3-6 months, we are going to have completions in the 3,000 to 6,000mcfpd range. At the low end, that will add 70 boepd to Sharon and 250boepd at the high end. Considering they averaged 415boepd for Q3, this is going to be a nice ride. Bobwins
Have any idea what happen to their Wilcox Mustang Ranch wells?
News, Maybe I was a couple of days early. Looks like a great well and opens up more opportunity. I tryed to buy more yesterday but could not get my price.
hope it is but doubt it. Shy up on only 12K volume while Dzr is down .05 on 77K. Here's hoping they hit TD and have loads of gas!!!! Bobwins
I was very excited about the NW Speaks prospect after talking with CEO. Sounds like BIG potential. Bobwins
Yes, they have at least 2 years of locations there. I would like to know more about the leases they have in the area. I think they have other opportunties that we don't know much about.
What people don't realize is that they have four to six more wells just like Hancock #2 and Hound Dog #2 to drill. Every 3 months, we are going to have more good news. The size of these wells compared to Sharon's size is what makes it so nice. Bobwins
I think we are right where we need to be. I have been picking up more over time. These guys are on a roll. We should start getting some interest here.
This earnings report is slightly better than my forecast. Gross revs 1.6 vs 1.3, c/f 1.3 vs 1.1. Production was ahead of my guess. I used 300, they state 415boepd for q3. Expansion of facility at Hancock should help during this fourth qtr. Bobwins
CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2006) -
Sharon's financial results are expressed in U.S. Dollars
Sharon Energy Ltd. (TSX VENTURE:SHY) reports that its production volumes
nearly tripled, to average 317 BOEd for the nine months ended December
31, 2005 from 111 BOEd in 2004, which resulted in substantial increases
in revenue, cash flow and earnings for the period. Sharon's production
for the third quarter averaged 415 BOEd.
Total revenue increased by approximately 344%, to $3.0 million compared
with $682,000 for the same period in 2004. Cash flow increased to $2.3
million, or $0.06 per share from $215,000 and the Company reported
earnings totaling $829,000 compared with a loss of $682,000 for the same
period in 2004.
In February 2006, the Allen Ranch Hancock #2 well was completed in one
of eight potential Wilcox gas zones with the deepest zone being
completed and stimulated in February 2006. The well is currently
producing at a rate of 3.5 MMcfd, which is a restricted rate due to the
current limits of the natural gas processing facility for the field. The
processing facility is currently being expanded to handle increased
production capabilities. Sharon has a 14% interest in this well.
Also in February 2006, the Allen Ranch Hancock #1 well was completed in
a fourth Wilcox zone and is currently flowing at 5.0 MMcfd, which is
also restricted due to processing facility constraints. Sharon has a 14%
interest in this well.
Relevant to Sharon's reserve potential in the Allen Ranch area, a
competitor recently announced that it had drilled a deep, 17,500 foot
Wilcox gas well, approximately one-half of a mile north of Sharon's
acreage and had encountered 222 feet of gas pay. The competitor has now
moved its rig to drill a similar deep well only 550 feet north of
Sharon's lease line. The Company is greatly encouraged that the
potential for deep Wilcox gas production has now been demonstrated in
this area and further development could result in a significant increase
in the Company's gas reserves.
The Dickson #2 well, in which Sharon has a 25% working interest, is
currently drilling at a depth of 15,850 feet. The well is targeting
multiple Wilcox gas zones and is expected to reach the total depth of
17,000 feet by March 1, 2006. To date, the well has encountered multiple
gas shows based on samples and mud log results.
Sharon Energy Ltd. is a junior oil and gas company currently conducting
active natural gas exploration programs in Texas, Alberta and
Saskatchewan. Sharon is currently focused on exploring for natural gas
in Alberta and deep Wilcox gas in Texas.
SUMMARY OF OPERATIONS
Nine Months Ended
December 31
--------------------------
(expressed in U.S. Dollars) 2005 2004
------------------------------------------------------------------------
Financial
Total revenue (net of royalties) $ 3,028,100 $ 681,608
Cash flow $ 2,272,265 $ 215,098
Cash flow per share $ 0.06 $ 0.01
Earnings (loss) for the period $ 828,729 $ (681,816)
Earnings (loss) per share $ 0.02 $ (0.02)
Capital
Additions $ 4,147,749 $ 1,465,977
Dispositions $ 649,944 $ 150,000
Net debt $ 4,584,202 $ 2,932,806
Total assets $ 10,588,611 $ 4,292,571
Operations
Production
Gas (Mcfd) 1,670 521
Oil (Bopd) 37 21
BOEd (6mcf =1bbl) 317 111
Product Prices
Gas ($/Mcf) $ 7.71 $ 4.70
Oil ($/Bbl) $ 53.03 $ 37.29
Total shares outstanding, at period end 38,811,065 37,555,598
------------------------------------------------------------------------
------------------------------------------------------------------------
Forward-looking statements - statements included in this press release
that are not historical facts may be considered "forward-looking
statements." All estimates and statements that describe the Company's
objectives, goals or future plans are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties
where actual results could differ materially from those currently
anticipated.
Wonderful. I am long and strong. I like the risk/reward. These guys are unknown and if the have the luck they have had, look out. I have been buying and will buy more on weakness. They have some great prospects and seem to be well managed. Gas pricing is hurting along with rest, must consider other points in this company. Picking the right companies is very important in this environemnt.
More publicity can't hurt. David Pescod is a broker for Cannacord in Canada. He puts out a daily email newsletter that is read widely in Canada. Bobwins
DIAZ RESOURCES (T-DZR) $1.11 -0.02
SHARON ENERGY (V-SHY) $0.72 +0.04
Now these are pretty good numbers! Or at least they used to
be when people last cared about natural gas prices.
Sharon Energy and Diaz Resources announced successful completion
of two Allen Ranch wells which were fracture stimulated
late last week and tested over the weekend.
The Allen Ranch Hancock #2 well in Texas completed one of
eight potential Wilcox gas zones and is flowing to sales at a
restricted rate of 5 MMcfd with some very good pressure of
10,150 psi.
The Allen Ranch Hancock #1 well also completed the fourth
Wilcox gas zone and is currently flowing at a restricted rate of
5.6 MMcfd with pressure of 7800 psi. Yes, folks, these are really
good numbers.
I suspect it would have been really significant two months
ago, when gas was $15.00. It’s still not bad with gas at $7.20,
but the oil and gas market has definitely softened and interest
slackened.
Meanwhile production from the Allen Ranch field is being
restricted by facility constraints. But the results are pretty good
for two of Bobby Lamond’s companies—Diaz Resources with a
20% interest in the wells and Sharon Energy with a 14% interest.
These are deep and fairly expensive wells in Texas, but they
are certainly coming up with the results. It’s not as if they were
finding something really neat like copper, zinc or nickel, which
seems to be of a little more interest these days, but should gas
(in a few months) finally bottom in the summer time when demand
for gas once again, creates interest, this should be two
stories to watch.
We sold both our Diaz Resources and Sharon Energy when
gas started weakening a month ago, but all this is still good
news for veteran oil and gas man Bobby Lamond.
It will help him pay for some tickets later this week for the
production of “Guys and Dolls” at the Citadel Theatre here in
Edmonton.
While Lamond mentions that he has had some influence on
his family—after all, his two boys became geologists, his
daughter totally escaped his influence. She is a performer with
Broadway on the Mind and featured in this play that should light
up Edmonton, and lucky Bobby gets to escape the cultural
waste land that is Calgary and come up for a little arts and
crafts to see his daughter perform.
Thanks indeed, Bob.
Awesome write-up. Thanks for sharing all your hard work and research. It sounds like Sharon is doing everything right at this point. I don't know much about the NW Speaks prospect, but it sounds like all the TX potential plus NW Speaks gives Sharon an incredible inventory of projects, all with very large potential production increases.
I'm glad I bought a few extra shares last week. It looks like Sharon could be a great long term investment if they continue to hit. I'll be watching intently to see if the Hancock processing facility gets completed by end of March. If so, we should easily be producing 600-700 boe/d by April.
Talked with Kip Ferguson, CEO of Sharon Energy today. He was very friendly and gave me a lot of good information about Sharon.
Here are the questions that I asked him:
1. Are the reported well production rates gross rates or after royalties have been subtracted?
The rates reported in the PR’s are typically gross rates before royalties. They typically try to subtract the CO2 that is produced which is 6 to 7%. They will use phrases like “sales production” to report the gross gas production less the CO2.
2. What will the commingling of production zones do to the production rates for Hancock #1?
He said you can’t just add up the individual zone production rates and total them to get the commingled production rates. He said #1 will likely produce at a sustained rate of 6,000mcfpd. The advantage of commingling is that the decline rate will be much slower than if only one zone was produced at a time.
The reason that Sharon has taken so long testing each zone is for reserve purposes. Sharon started out with small reserves and wants to get maximum credit for its wells. Engineers will not give you credit for reserves in a zone unless they have data backing up the potential production. The individual completions have given Sharon and the engineers data so they can give Sharon and Diaz credit for each zone’s separate reserves. The other advantage is that Sharon has been producing almost continuously all year long and earning revenues while it was completing this data. This generated income for Sharon while still maximizing reserve additions.
3. What is the completion schedule for Hancock #2. Because they now have a busy drilling schedule ahead of them, Sharon may not take the same path with #2. They may just let this fairly strong zone produce until it either declines enough to make them take action or until Sharon has more time and equipment availability.
4. What is the schedule for NW Speaks. Sharon has a high 50% WI with Diaz retaining the other 50%. Ferguson said this has always been his favorite project. He waited years for the project to come up as available. He thinks it has very high potential. However since they have multiple development projects at Hancock and Allen Ranch, they will likely pursue those first because these leases have a time frame requirement that NW Speaks does not have. If they were to somehow get another rig that was capable of the deep drilling required by their wells, he might reconsider. He said that it is likely that Sharon and Diaz(with 50% each) would use a portion of their working interest in the NW Speaks as an incentive for a driller to commit to the project. He feels as long as he has 1/3, that is enough to warrant Sharon’s involvement.
5. Is Diaz involved in all your US properties?
Yes Diaz is a partner is all of the Sharon US wells. Diaz and Humboldt Capital have been excellent partners for Sharon. They have allowed Sharon to bid and secure much bigger projects than what would have been possible by themselves.
At first, when Sharon had minimal production, they didn’t have the cash or the credit lines to finance even one well. Diaz thru Humboldt provided Sharon with a guaranteed partner who could fund the deals as necessary.
Diaz is not only their partner in well expenses but even helps pay for some of Sharon activities that don’t result in a successful lease purchase.
Overall Ferguson stated that his plan for Sharon was to pursue deeper wells that were sometimes overlooked by exploration companies in Texas who had always made a living drilling shallow, cheap wells. Some of Sharon’s leases are situations where the shallower depths are already leased out. Ferguson is a geologist and he has another geologist on staff. Together they do all the research to find the prospects and decide whether they are worth pursuing.
They also participate in some of Diaz’s Canadian projects but to a lesser percentage than Diaz participates in US drilling. Diaz recognizes the higher impact of the US wells and publicly stated in the future they will emphasize US prospects over their traditional Canadian candidates.
Ferguson also mentioned that many of their drilling operations are really development wells rather than exploration. He says that many of the older wells were drilled using old technology and may not have performed that well. However with newer fracing techniques and fracing materials, they are able to get much higher production than the original exploration well that may have been producing for quite a while. They also benefit from modern 3D seismics to help identify the prospects and the size of the target. He said that they use bauxite sand when they frac that is rated for well depths up to 20,000feet. The normal material that is used in shallower wells is collapsed by the higher pressures and can cause the formation to close and cease producing.
Ferguson feels they have several development wells at both Hancock and Hound Dog to pursue over the next 18 months. He called me after a meeting for 6 hours with the drilling company to review and plan for the drilling schedule. He feels very fortunate because they have retained the same drilling rig and crew. He said it is a high quality rig which is fairly new and has all the technical capabilities needed in their deeper wells.
Sharon ended 2005 in the 325-350boepd range. This gave Sharon approximately C$500K per month cashflow. Since then they have added Hancock #2 production of 140boepd net to Shy. They also have almost 100boepd of Canadian production at Jaslin that has been waiting for pipeline completion. The pipeline is scheduled to be completed by the end of February. He feels that 600boepd is a realistic goal for 3/31/06. The end of March is around the time that the processing facility for Hancock wells will be expanded to 15,000mcfpd. Once that expansion is done, Hancock #1 will produce from the 4 zones. As stated previously, #1 may not be produced at much higher levels even after commingling all four zones but #2 is being restricted at 5,000 so that will likely be increased some. By the end of March, Shy should know more about Hound Dog #2 and it’s prospects for production.
Ferguson said that because of the recent success and improved cashflow, they are able to fund new drilling from cashflow. He felt that they could drill 4 to 6 deep Texas wells now versus their historical 1 or 2 per year. He said when they went for financing in December 05, they had to limit the amount of the offering to $6 million. They were offered much more but felt the 6 would clean up their balance sheet and get them in a position to be self financed. Sharon used the money to payoff the Humboldt Capital 3.5 million line of credit and provide funds for the Hancock#2 drilling expenses.
He didn’t rule out future offerings but it doesn’t sound likely in the next year.
This is good news. Multiple zones but they are only producing from one because of capacity constraints! Sharon may hit 800boepd by April after all. I bought a few more shares even though the market is tough today. Bobwins
Another great well. Also looks like the Dickson #2 well may be more of a development well at the upper pay zones. Market is such that there may not be much of a pop.
I am picking up more here. Too much up side with some measured risk.
Good point, we well see. Lots of upside. Like the their style.
new well spudded. I was a little surprised by the language describing this as a wildcat. I thought they would go thru the original four zones and then go deeper for the new potential zones. Sounds like they are bypassing the upper zones to focus on the lower ones. Hope they hit. I was hoping this would be more of a development well. Bobwins
Tuesday January 10, 9:00 am ET
CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2006) - Sharon Energy Ltd. (TSX VENTURE:SHY - News) today announced that drilling operations have commenced at its Hound Dog Prospect, Lavaca County, Texas. The well, Camden Resources R. Dickson #2, was spudded on January 7, 2006 and is expected to take approximately 70 days to reach the proposed depth of 17,000 feet.
ADVERTISEMENT
[Blocked Ads]
The well is located 2,150 feet southeast of its discovery well, the R. Dickson #1, but is a new pool wildcat targeting four deeper Wilcox zones, one of which tested gas in the offset R. Dickson #1 well. Sharon has a 25.3% working interest in this well.
The R. Dickson #1 well is currently producing at 3.8 MMcf per day and has a cumulative production of 0.65 BCF.
Sharon Energy Ltd. is a junior oil and gas company currently conducting active natural gas exploration programs in Texas, Alberta and Saskatchewan. Sharon is currently focused on exploring for natural gas in Alberta and deep Wilcox gas in Texas.
IDRILL4GASOIL.... I don't think we need a couple more.
We should get test results on some of the zones in February and that's about the time we should get preliminary results from Hound Dog #2. If Hancock #2 tests bigger than #1 and Hound Dog #2 hits gas, we should have an early spring party in SHY.v!!! It's already hitting all time highs with no actual test results. Bobwins
Well Bob I think we may have a winner here. A couple more wilcox's and someone is going to notice.
Don't know about Newfield wells by name. Check out Sharon website and corporate presentation as of 11/05.
http://www.sharonenergy.com/
Bobwins
Are you specking of the Newfield wells? Do you know what there other prospects look like and how much the may have in the area?
Just waiting for the real news. Hancock #1 took months to test and put on production. Sounds like they have 7 or 8 zones to test before deciding which ones to put into production if it's commercial. The deeper zones were the target of this well along with the four upper zones perforated in the original Hancock. Deeper zones in other nearby wells have been big! Hate to get my hopes up but it sounds promising. If the well is commercial, it should be a nice boost for Sharon. Very low production now in the 300boepd range. Was 204 last qtr before increased production at Hancock#1.
Bobwins
Nice new well it looks like Handcock #2. I have been in for a month or so. Looks like it may be a nice little junior O&G stock. Anyone out there?
Sharon six month results. Cashflow was close to my forecast at C$958,000 vs my forecast of 1,082. Apparently I calculated high on production as they reported an avg of 204boepd vs my estimate of 330. The Texas production must have come on later in the qtr than I projected. I will wait for the SEDAR document so I can review and revise my q4 forecast. Bobwins
http://biz.yahoo.com/ccn/051125/200511250299089001.html?.v=1
Sharon Energy, sheyf.pk or SHY on Venture Exchange in Canada is a junior energy producer with excellent prospects going forward. Sharon has an interest in two different fields in Texas with good upside. The HoundDog #1 well is producing 3.8 mmcfpd and Sharon has 28.125% working interest. Hound Dog #2 will be drilled in early 2006.
Hancock#1 is producing 5.6 mmcfpd from one out of four productive zones. Sharon has 14% working interest. Company has stated that all four zones will be completed and comingled at a gross rate around 7mmcfpd. Hancock #2 is set to spud 10/15/05. It will drill thru the four proven zones to a deeper Wilcox sand that appears on the seismics.
I own both Diaz and Sharon. There is a rumor that Diaz will split up its Canadian operations from the Texas production. This spinoff would make Diaz more attractive to a Canadian Royalty Trust AND capture the value of the US operations. Many microcap US stocks trade at multiples several times what Diaz trades at with less production. Bobwins
Followers
|
2
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
81
|
Created
|
10/17/05
|
Type
|
Free
|
Moderators |
12/31/05 3/31/06 BPD 300 430 Rev 1,380,000 1,780,200 Trans Exp 100,000 100,000 Op Exp 105,000 125,000 SG&A 120,000 125,000 Int 30,000 0 Depletion 340,000 375,000 Net b/f tx 685,000 1,055,200 Inc Tx 274,000 422,080 Net Inc 411,000 633,120 EPS .010275 .0109 C/F 1,125,000 1,530,200 C/F per share .028125 .0264 Shares 40,000,000 58,000,000You can see the impact of the recent financing. The share count goes up and negates the improved production. I also lowered the price for oil to $46/boe for Q4. The real benefit of the recent Hancock #2 success should come in Q1 because if the exit rate is 600boepd at 3/31 and Hound Dog hits and the expansion of the processing facility allows Hancock #2 to flow at a higher rate, we could be at 800boepd early in Q1. The development wells are stacked up for Sharon to drill. Hancock and Hound Dog will have 2 to 3 more wells each. This will take Sharon 18 to 24 months to drill. Each well should have similar potential to the first three and benefit from the knowledge of the zones that each new well brings. The deeper zones at Hound Dog could be very exciting. Hound Dog #2 will be the first to explore these zones. Bobwins
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |