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Up and Coming, Royal Quantum Group (RYQG.OB) Woodford Shale Play! Royal Quantum announces update to shareholders.
Completion work is continuing on the Gleason #4-16 well located on the Nemaha Ridge in north central Oklahoma approximately 8 miles southwest of Perry...The company is in discussions with a third party to acquire a sizable land position within the region that could potentially host substantial oil and gas reserves in multiple zones...
Read full release at:
http://www.finance.yahoo.com/news/Royal-Quantum-Update-to-iw-73938083.html?x=0&.v=1
http://www.twitter.com/torogreen
http://www.twitter.com
EENI has low OS of under 2 million.
Royal Quantum Group Drilling in Woodford Shale, latest shale to join the parade.
Royal Quantum Group, RYQG.OB announces drilling has been completed in Gleason #4-16 well, located in Nemaha Ridge in north central Oklahoma.
Woodford shale, within Anadarko basin, is territory for Devonian black shale resource. Large operators in area include Devon Energy and Chesapeake Energy.
Read further at http://www.bullstockalerts.com/blog/?p=22
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The Last American Wildcatter
http://www.forbes.com/free_forbes/2009/0202/066.html?partner=yahoomag
Big Oil: Dark Skies Ahead?
February 06, 2009
by Prudent Speculations
In what is likely to be one of the more interesting stories in 2009, the Financial Times on Wednesday discussed the impact that the falling price of oil will likely have on some of the world’s largest multinational oil companies.
Despite having record breaking profits in 2008, 2009 looks to be a different story altogether as the decline in oil from $150 to $40 could lead to hard choices for oil companies. Particularly on whether or not to continue with their current level of capital expenditures, share buybacks and dividends or to reduce these expenditures to reflect their current cashflows and the price of oil. Below you will find a fascinating graphic from the Financial Times that breaks out the cashflows of six of the worlds largest oil companies and the impact that the fall in the price of oil will likely have on them.
The negative cashflows that will likely be achieved by BP, ConocoPhillips (COP), Shell (RDS.A) and Eni (E) at $35 dollar oil will force these companies to either reduce their capital expenditures and shareholder payments or to borrow in order to continue with their current expenditure policies. While these companies have certainly built near fortress balance sheets, no management team enjoys shelling out more cash than what is coming in on unprofitable capital expenditures and through the return of capital to shareholders.
In addition to the cashflows of the world’s largest oil companies being impacted by low oil prices, their balance sheets are as well as the firms will likely have to take dramatic writedowns on assets that were purchased at premium valuations during 2008. A prime example of this occurring can be seen in ConocoPhillips most recent quarterly report in which it took a $34 billion dollar writedown.
Unlike their smaller brethren, BP, ConocoPhillips, Exxon Mobil (XOM),, Shell, Total (TOT) and Eni have held up fairly well given the recent swoon in the financial and commodity markets. This trend will likely not continue, as investors are likely to become increasingly skittish of these firms because of the ever increasing chance that they will be forced to take on substantial amounts of debt to maintain their current capital expenditures and shareholder return policies. Over the last year these six companies have performed as follows:
XOM: Down 2.8%
TOT: Down 25.3%
RDS: Down 26.4%
E: Down 28.0%
BP: Down 30.3%
COP: Down 38.3%
Of these six, it is clear that Exxon Mobil has significantly outperformed its fellow big oil peers. Despite having $31 billion in cash, the company’s quarterly earnings reports will likely be ugly going forward as the company’s free cashflow will undoubtedly come under significant pressure. At its current price the company’s earnings multiple is 2-3 times its smaller mid and small cap peers. Despite its ability to radically reshape the oil and gas industry with its strong balance sheet, the stock should not be held at these levels given the current price of oil.
The company's most recent quarterly report, and the ones that will come after it, will weigh heavily on the stock’s momentum investors, as they will become increasingly uncomfortable holding shares in a company with a deteriorating balance sheet and income statement.
There are many other smaller oil and gas stocks that I would rather own over Exxon that have already fallen significantly and are now trading at levels much more reflective of the current environment within the energy markets. Unless oil returns to $70+ dollars per barrel, Exxon Mobil will more then likely come under significant pressure going forward as the gap between its valuation and that of its fellow big oil peers begins to converge.
The Top 10 Peak-Oil-Related Stories of 2008
Tom Whipple, Editor
Steve Andrews, Publisher
January 5, 2009
ASPO - USA
1. The Global Recession
The impact that declining world oil production will have during the coming year, and possibly longer, is now inextricably intertwined with the course of the economic recession that is sweeping the world. During 2008 the world’s stock markets lost some $30 trillion in investor equity. Nearly every major government was forced to begin massive bailouts of financial institutions and many have started to support failing businesses. The end is not in sight.
While many peak oil observers long anticipated that faltering world oil production would lead to much higher oil prices and eventually to an associated economic meltdown, the setbacks of the last year have complicated the situation. While it is clear that worldwide demand for oil has stopped growing and has started to decline in the last six months, it is not yet clear just how fast demand is falling. The sudden drop in oil prices has further complicated the situation by setting off a race between falling prices and slowing economic activity.
Nearly all observers are forecasting that the economic situation will get worse for at least the next six months as foreclosures increase, real estate values continue falling, retail downsizes, and unemployment grows. From there on opinions vary. Some believe that the trillions in financial and business bailouts and massive government stimulus spending will stabilize the US and world economy, eventually leading to economic growth. Others believe that spending so much borrowed money will only exacerbate the current situation and that far worse times are ahead.
Some peak oil pragmatists look at the US airlines and auto industries as the canaries in the recession’s coal mine. Hit last spring with oil prices too high to work with their business model, plus a recession, the airlines blinked. Virtually all announced major schedule cutbacks. The recession has pushed the Detroit Big Three to near bankruptcy. This year will likely determine their future.
2. Price Volatility: Who Knew?
In a case of extreme dissonance, oil and gas prices first rocketed and then crashed in unprecedented fashion during 2008, setting records and trashing forecasts in all camps. Oil: from $90 to $147 to $34? Natural gas prices doubled, then dove. Some coal tripled, then retreated too.
Why the enormous swings? With hindsight, the drivers to the upside seemed to be a mix of the fundamentals and speculation. First and foremost, it was obvious but too often overlooked that flat oil supply and increasing demand is a recipe for a price surge. Then too, stockpiles were well below norms during the spring price run-up. A growing mismatch between marginal supply (e.g., Iran’s heavy oil) and available refining capacity to process that oil didn’t help. Shrinking exports from Russia, Mexico and 13 other leading exporters—down 2.5% from 2006—sent a price signal.
On the investment front, the sinking dollar and hammered equities drove investors towards the full suite of commodities, not just oil. Goldman Sach’s report in early May forecast $150-$200 oil within 6-24 months—one of several analyses that probably stimulated some late-cycle gambling. And any geopolitical moves in the oil patch—violence in Nigeria, nuclear chatter from Iran, explosions on the BTC pipeline in Turkey, etc.—were bullish factors pushing up prices and driving fisherman, farmers and truckers to strike and protest the financial pain.
And then came the crash, a 75% price drop over just 5 months that stunned producers. While the crash handed staggering American consumers what is now a billion-dollar-a-day unscheduled bailout, remember that the oil price run-up—a primary trigger in most of the major recessions since 1973—was a leading-edge factor in our deepening recession.
An almost tragic byproduct of 2008’s violent oil price swings is that it sends confusing signals about our long-term oil supply constraints to decision makers at all levels. For example, low gasoline prices are helping lure some car-buyers back to near-dead SUV showroom floors…
3. Falling Investment = Building the Big Boomerang
During the first half of 2008, spiraling costs in the oil sector led to the periodic announcement, especially from oil exporting countries, that a few production or refinery projects were being delayed, decisions put on hold. It didn’t help that the industry—from fully-booked drilling rigs and tankerage to an over-booked and aging engineering corps—appeared stretched thin. The International Energy Agency sounded warnings of under-investment by the oil industry.
Then came the crash. During the fourth quarter, when demand declined and oil prices dropped to four-year lows that few industry players had anticipated, a daily drumbeat of project delay and cancellation notices flowed from the industry. Among the earliest casualties were the Alberta tar sands processing projects which require massive amounts of capital for every barrel of production capacity; one company even announced a 50-percent cutback at their existing tar sands operations because $40 oil does not cover current costs to excavate and separate bitumen from sand. Additionally, some proposed deepwater projects don’t work with oil prices under $60 a barrel.
Tighter credit is also taking its toll. While major international oil companies may have financing in place or can self-finance projects, smaller companies delayed or cancelled plans due to lack of liquidity. That same liquidity issue also battered prospects for front-loaded renewable energy financing as well as funding for extremely expensive “clean-coal” and coal-to-liquids projects. While national oil companies made massive profits through September, the October-December price drop hammered those producing countries where the bulk of their oil revenues are diverted to run government programs; they will soon be in no position to invest in new production developments.
While worldwide demand for oil is falling, it isn’t dropping as fast as investment in new production. Bottom line: the slowdown in new oil production projects will obviously have a major effect on future oil production rates. It may be several years before cancelled or delayed projects fully impact the world’s capacity to replace declining production, let alone grow that production again. If the economy should stabilize during the next year or two, and demand for oil snaps back, expect prices to boomerang back above $150. Investment uncertainty guarantees higher price volatility just a few years out.
4. The IEA Changes its Stance (will U.S. EIA, CERA and Exxon-Mobil follow?)
During July 2007, the International Energy Agency announced its intention to conduct a bottom-up study of worldwide oil field production in order to better inform their OECD member about prospects for future supply growth. They more than hinted at accelerating supply and price troubles to come. That warning was echoed again in July 2008 when the IEA cut its supply forecast for the next five years. Realism seemed to be settling in at the Paris-based energy office.
On November 12th, the IEA released its World Energy Outlook 2008, a forecast that broke with their past tradition of projecting demand and then assuming supply would rise up to meet it. The report was a curious mix of unreality (liquid fuel supplies can grow steadily between now and 2030) and unprecedented warning of an energy crisis to come. Breakthrough findings included:
•
“Current global trends in energy supply and consumption are patently unsustainable.”
•
Half the world’s oil comes from the 110 largest fields; many of those are post-peak and aging.
•
The natural decline rates [all drilling stops] for fields past their peak is 9% and rising.
•
Observed decline rates [drilling/maintenance continues] for fields past their peak production rate is 6.7% today, rising to 8.6% by 2030.
Much of the media coverage of the WEO 2008 focused on the stated need to discover and/or develop 64 million barrels a day—“6 new Saudi Arabias”—of new production by 2030. Digging deeper into the IEA’s detailed assumptions uncovered some trends which IEA forecasts that raise major questions:
•
Will the US will only lose 400,000 bpd in production over the next 22 years, compared to 800,000 bpd over the last seven years?
•
Will Mexico only lose 500,000 bpd from its 3.5 million bpd in 2007, despite production at their mainstay producing field (Cantarell) being in a tailspin?
•
By 2030, will China only lose 200,000 bpd, despite China’s admission that their production should peak by 2012; etc.?
Yet despite these and other weaknesses, the report’s “unsustainable” position statement was one of many that broke new ground.
Finally, in an important post-script to their WEO 2008, Dr. Fatih Birol, the IEA’s chief economist, was interviewed by the Guardian newspaper during mid-December. When asked what the phrase oil production “leveling off towards the end of the projection period” meant, Birol gave the interviewer the date 2020. Yes, peak oil by 2020… While that’s still way too optimistic a view for many realists and pragmatists, that statement represents a major turnaround for an agency that has previously supported the “no peak in sight” mantra.
5. The Campaign and the Elections
Until the price crash which started in July, it looked as if this year’s US federal elections were going to be about gasoline prices and little else. As prices rose to the $4 - $5 level, politicians running for office became so nervous that proposals to counter high gasoline prices were flying all over the landscape. Some wanted to cut gas taxes; many wanted to scrap environmental restrictions on drilling; and some wanted to ban speculation. That most of these suggestions were of dubious value or would take many years to implement was of little import. It was the appearance of concern that counted.
As gasoline prices fell during the summer and fall, however, and the need for immediate action diminished, the wilder proposals disappeared, but a fundamental disagreement of whether more domestic and offshore drilling would solve the problem continued to November. Yet the hard facts—that offshore drilling won’t contribute substantively to supply for a decade, that peak flow from the “new offshore” would perhaps equal 1+ percent of current consumption, etc.—were generally missing from the dialogue.
The election of Barak Obama to the presidency clearly will bring about a major change in the US government’s approach to global warming and energy policies. As yet, there has been little discussion of oil depletion by the new administration outside of ritualistic and poorly-informed pronouncements about energy independence. So far statements and appointments made by President-elect Obama show that he will clearly place a major emphasis on reducing fossil fuel emissions, promoting renewable sources and efficient use of energy, goals which are compatible with preparations for peak oil.
6. OPEC Cuts Production
Last spring, OPEC, and most particularly the Saudis, came under heavy pressure to increase production as oil prices were increasing so rapidly it seemed as if industrial civilization was about to be pushed over the edge. President Bush visited the Saudis and Riyadh even put on a special producer/consumer gathering in June to announce that the Kingdom was increasing production from newly completed wells to help with the crisis.
Within weeks, however, the landscape shifted and oil prices began the unprecedented plunge that brought the average prices that OPEC received for its oil from an all time high of $147 a barrel in early July to $35 last week. As prices fell through $100 in mid-September and then $60 in mid-October, OPEC became increasingly nervous. Not only was oil falling below the cost of exploring and drilling, for new production, the producers’ national budgets which are heavily dependent on oil revenue were being devastated.
In a series of meetings beginning in September, OPEC announced production cuts that now total on the order of 4 million b/d. As ignoring such cuts is a long tradition within OPEC, the oil markets were rightly skeptical that the cuts would actually be made. Much to OPEC’s chagrin, oil prices continued to fall as each production cut was hinted at or announced. In the last week, however, as more details of the cuts have been announced and OPEC’s customers have started reporting that they expect to receive less oil in coming weeks, the market’s skepticism has been slackening.
7. The Large Exporters: from Boom to Busted
As oil prices rose steeply in recent years, OPEC and the other major oil exporters benefited greatly. In 2001 the average value of OPEC oil exports for the year was $23 a barrel and in 2008 it was on the order of $95. This four-fold increase in oil revenues had varying effects. Some countries such as Norway and the smaller Gulf States quietly stashed the money away in sovereign wealth funds for the benefit of their grandchildren. A few, such as Russia, Iran, and Venezuela, became belligerent, using the new-found wealth to promote their leaders’ ideological goals and great power aspirations. Resource nationalism abounded as governments felt they could now do without foreign investment and technical expertise.
In the last six months however, many of these aspirations have been brought up short by the collapse in oil prices. Hardest hit have been those exporters with large populations to support such as Iran (65 million), Venezuela (26 million), Russia (140 million), Mexico (110 million) and Nigeria (146 million). Adding insult to injury, production in all five of these countries is either declining or flat while domestic consumption increases; that means declining net exports—another hit to the bottom line for the exporters, plus a looming pothole for the world’s oil importers.
Although 2008 was a banner year for exporters, as prices were above $100 a barrel until September, after the price crash their cash flow is becoming a huge problem. Development projects are being cancelled, stock markets are crashing, budgets are being reworked and political unrest may be in the wind as countries like Iran consider eliminating large gasoline price subsidies. Even some of the more belligerent geopolitical posturing seems to be moderating as governments turn to more pressing domestic issues.
Unless prices rebound soon, major exporters with little other revenue will be hurting.
8. Shale Gas: Game Changer or Rope-a-Dope? [or “a mixed blessing”]
After essentially no net increase from 1994-2006, U.S. natural gas production rose 4% during 2007 and will have increased between 6% and 7% in 2008, despite shut-ins for Gustav and Ike. The biggest single reason for this is increased flows from shale gas. In a world without deep recessions, this success might have continued the current run for several more years. Indeed, shale gas will still play a key role in US natural gas production for decades, but that isn’t unqualified good news.
The industry knew about shale gas for many decades. In fact, the nation’s second-largest producing field today—Texas’ Barnett Shale—was discovered in 1981. But back then, the industry didn’t know how to exploit the resource on a large scale. Application of horizontal drilling in the Barnett Shale changed that. Compared to drilling vertical wells for conventional gas, this unconventional resource requires more drilling, more hydraulic fracturing work—more cost and more energy inputs. The breakeven costs (plus 10%) for most of the shale-gas plays falls between $5 and $6.50 per Mcf of natural gas. During the last five months of 2008, natural gas prices dropped 50% from their July peak; the combination of that price crash plus recession-induced destruction of demand for natural gas forced the gas industry to start idling rigs. Of the 1600 rigs drilling for gas as recently as September, as many as 400 will likely be stacked soon.
There’s a related nasty catch with shale gas: during the first year after a shale-gas well is drilled, upwards of 2/3 of the ultimately recoverable gas flows from the well; that’s a lot faster decline rate than conventional wells experience. So the more reliant we become on shale gas wells, the more susceptible we will become to wider swings in supply. Relying on shale gas is likely to cause much more volatility in prices.
9. Food vs. Fuel Hit Pocketbooks Worldwide
2008 started with a rash of reports by respected organizations about a worrisome if highly predictable phenomenon: increased use of biofuels was helping push up food prices worldwide. Two Purdue University agricultural economists published in late 2007 that two-thirds of food cost increases from 2005-2007 were related to biofuels. During the previous six years, land planted for biofuels increased from 12 to 80 million hectares as subsidies and national policies mandating their use were driving the rush to biofuels. The UN’s food price index, based on export prices for internationally traded foodstuffs, climbed 14 percent in 2006, 37 percent in 2007, and continued apace into 2008.
Rapidly rising food prices obviously result in hunger and political instability as more people become desperate in their search for affordable food. During 2008 food riots erupted in Mexico, Italy, Morocco, Pakistan, Yemen, Senegal, Mauritania and elsewhere. Press reports popped up about “how the rich are starving the world by making biofuels—dubbed by some as “a crime against humanity.”
In the US, the ethanol industry and its reported $25 billion in federal handouts started in 1978, picked up enormous momentum after the August 2005 Energy Security Policy Act, and accelerated even faster after Congress passed the Renewable Fuels Standard in December 2007. Now, thanks to one of the most divisive agricultural policies in the US, there are 178 ethanol distilleries in the US that will likely consume over 30% of the US corn crop and produce just under 600,000 b/d of corn ethanol. (Adjusted for energy equivalency, that offsets roughly 400,000 b/d of US oil consumption—around 2% of our daily oil diet—excluding the large net-energy problem that plagues corn ethanol.) Yet after 30 years of R&D, a $0.51/gal tax credit and tariffs on imported biofuels, the industry still can’t compete; large ethanol player VeraSun filed for bankruptcy in late October, and now the industry is asking Congress for bailout dollars.
The year ended with an op-ed from the Investor’s Business Daily in which they made this point: “The heavily subsidized ethanol industry is the latest to seek a federal bailout. If there is any industry that deserves to go bankrupt, it's this one. Time has come to stop putting food in our gas tanks.” In the interests of the food vs. fuel battle, we tend to agree.
10. Global Production Peaks, on the Production Plateau
The EIA reports that since 2005 production of conventional oil has been on a plateau, cycling up and down between 72 and 74 million b/d. In July 2008 production reached a new all-time high of 74.86 million b/d and has been dropping since. As OPEC is currently implementing production cuts totaling 4 million b/d, several major producers such as Mexico and Russia are in decline or do not have much growth potential; and investment in new production is drying up due to economic conditions, the likelihood that the July bump to a new high will stand as the all-time peak of world conventional oil production is increasing.
The IEA reports that “all-liquids” production which includes conventional oil, biofuels, natural gas liquids, and tar sands production, reached 86.5 million b/d in November, but this is subject to revision.
It is ironic that the all-time peak of world oil production seems to be happening in the midst of a global recession of unknown duration. While it is possible that the global economy could rebound in the next few years and markedly increase the demand for oil, it is clear that the industry is no longer able to respond with large increases in production as it did earlier this decade. All things considered, it is inevitable that declining world oil production, which is currently linked to declining demand and OPEC policy, will eventually be governed by production constraints. These constraints, due to a combination of geological factors, lack of adequate investment, geopolitical conflicts, and resource nationalism, make it likely that oil production will never again reach the highs seen in 2008.
Last 10 Insider Actions for Continental Resources Inc
http://www.marketwatch.com/tools/quotes/insiders.asp?symb=CLR
PPTL Premium Petroleum Corp.: Continues to Seek up to $5,000,000 in Financing to Tie-in Existing Wells and to Fund Additional Drillin
CALGARY, ALBERTA -- (Marketwire) -- 10/30/08 -- Premium Petroleum Corp. (PINK SHEETS: PPTL) continues to pursue financing alternatives. Debt, equity, and joint venture options are being reviewed.
The financing proceeds will be used to: equip and tie-in our Viking gas well (9-22); (approximately 1100 yards to the tie-in point), to test, complete, equip, and tie-in our Upper Grand Rapids Flowing Oil Sands well (14-15); to expand our drilling program; and for general working capital purposes
It is anticipated that the gross cash flow from these two wells could exceed $70,000 per month at current commodity prices.
Bruce A. Thomson, B.A.Sc.; President & CEO states: "In spite of oil price decline, our discovery remains economic due to the fact that the specific gravity of our oil is such that it will "cold flow", which permits conventional recovery methods to be utilized. We are fortunate as a junior company to not only to have approximately 15,000 acres in Oil Sands lands but also to have made a new pool Flowing Oil Sands Discovery."
FRGY:Frontier Energy Signs Letter of Intent With Weekley Energy Group 1 L.P.
http://biz.yahoo.com/iw/090109/0464873.html
NORTH LAS VEGAS, NV--(MARKET WIRE)--Jan 9, 2009 -- Frontier Energy Corporation ("Frontier" or "the Company") (Other OTC:FRGY.PK - News) is pleased to announce the signing of a Letter of Intent to form a joint venture with Weekley Energy Group 1 L.P. The joint venture concerns the acquisition of four separate leases containing a total of 27 well bores, of which three wells are producing. The remaining wells will be re-entered in four stages over a 120 day period from the date of closing and will use Weekly Energy's proprietary technologies and processes to re-complete along with the technical expertise of Frontier's consultants.
The joint venture entitles Frontier to receive for its initial funding 75% net revenue interest (BPO) and 50% net revenue interest (APO). The joint venture will continue to pursue additional re-entry and re-completion partners within the area of mutual interest in a 50/50 partnership.
Richard Shykora, CEO of Frontier Energy, stated, "We are looking forward to a successful relationship with the Weekley Energy Group and through Mr. Anderson's expertise to evaluate this opportunity, we feel this is a stepping stone to a potentially larger scale joint venture with the Weekley Energy Group.
"Weekley Energy Group 1 L.P. is pleased to enter into the joint venture with Frontier Energy. The addition of Mr. Anderson to our team will definitely strengthen our geophysical and technical expertise as we move to increase our inventory of well bores and acreage in the area of mutual interest containing tens of millions of recoverable barrels through our unique applications and technological processes."
About Frontier Energy Corp.
Frontier is an exploratory oil and gas business headquartered in North Las Vegas, Nevada. Our goal is to build a solid portfolio of assets through the acquisition of leases and explore and develop the opportunities on the individual leases.
World's Worst Ecological Disaster Ignored By Mainstream Media
The World’s worst ecological disaster, ever, ignored by mainstream media! Remember Chernobyl, Three Mile Island, Hiroshima and Nagasaki? They sure got mainstream media coverage. However a disaster which makes these events pale in comparison is being quietly ignored. Why? 600 milligrams of uranium were used in Little Boy which blew up Hiroshima. Seventy thousand people were killed by the blast, another seventy thousand people died excruciating deaths as a result of the radioactive uranium released in the explosion.
We all know how dangerous it is when uranium from nuclear power plants is exposed to the atmosphere and what extraordinary lengths and exceptional expensive procedures are employed to keep the spent uranium from contaminating the environment. The clean up costs when uranium gets out are astronomical. In 1979, depleted uranium (DU) particles escaped from the National Lead Industries factory near Albany, N.Y. It was estimated that less than 0.39 kilograms per month of DU escaped the factory. The cost of cleanup? In excess of one hundred million dollars.
Now this will blow your mind. Instead of storing the depleted uranium in ultra heavy duty storage facilities our dear government decided to make bullets out of it. Yea, bullets, like in weapons, things you shoot at people and tanks and the like. No, this is no different from the depleted uranium that is used in atomic bombs. Most atomic power plants require an enriched version in their reactors about 10% of the reactors can use DU.
It turns out that if you machine nuclear waste into a bullet and fire it at a tank the uranium bursts into flame on impact, melting through the armor plate and blowing up the tank. A bit like a mini atomic bomb hitting the side of a tank. The military call these ‘kinetic projectiles’. Yes the same alpha radiation and radio active waste is blasted into the atmosphere from these DU rounds as Little Boy in Hiroshima.
Ok, you are thinking, this must be in some remote crazy scientist test lab located in the middle of the Nevada desert. Well no. Ever seen a Warthog, the A-10 anti tank aircraft blasting away at a tank? Well guess what causes the fireworks? Yep, Depleted Uranium rounds, 65 thirty millimeter rounds of them per second or three thousand nine hundred per minuet.
Now you are starting to get it. No wonder everywhere the U.S. troops invade takes care of things so quickly, they are using mini atomic bombs.
Except, the quantity of radio active nuclear waste being blown into the atmosphere is no where near the 600 milligrams used in Hiroshima, they measure the amounts of DU atomic weapons in tons. That’s right tons. The U.S. military has so far blasted close to two thousand or more tons of radio active uranium into the nations we have been sequentially invading around the world.
So get out your calculator. There are one thousand kilograms in a ton, so that’s 2,000,000 kilograms of uranium. Now there are 1,000 grams in a kilogram, add another three zeros. And 1,000 milligrams in a gram, another three 000’s.
The U.S. is now responsible for blasting 2,000,000 kg of radio active waste into, Afghanistan, Iraq and who knows where else. Keep your calculator on. Now divide that by 64 kg to get an equivalent for Little Boy used to blow up Hiroshima. That’s it 28,438 twenty eight thousand Hiroshima’s.
Ok, so admittedly DU rounds when they blow up tanks don’t completely vaporize like Little Boy, about 50% of the uranium is vaporized, maybe more. So even if we half the number of Hiroshima’s our government has caused in their oil war, that’s still an awful amount of uranium atoms that are now free to float wherever the wind takes them.
Turns out Saddam Hussein was right after all, this Iraqi war has been the mother of all wars. The uranium will carry on killing for another four and a half billion years. 22 thousand U.S. and UK Gulf War Veterans are already dead from the DU, another two hundred thousand are registered with the "Gulf War Syndrome" from the DU, and that's ignoring the million or so Iraqi's we murdered and many millions who will now die excruciating deaths from radiation poisoning. If dust from the Sahara can end up in New York, hey it's headed here from Iraq too.
Well now the oil producing nations are unlivable, and maybe the rest of the world if global warming winds of change decide to spread the U.S. atomic goodwill.
Oh but we need the oil, our neighbors oil. So what if we destroy the earth getting it.
P.S. Why don't you send a friendly note commending Bush and his boys and all our Senators and Congress persons who allowed this to happen. Oh, and while you are about it cancel your newspaper and TV subscriptions.
TOLL FREE TO ANY MEMBER OF CONGRESS:
1-800-828-0498
1-800-459-1887
1-800-614-2803
1-866-340-9281
1-866-338-1015
1-877-851-6437
Anybody with any good oil and gas traders? Or anything for that matter? GLTA
CLR should test support from here $21.87ish
CLR turning into a great trading play imo...GLTA
I play oil and oil stocks both ways and it is hard to pick a bottom now that "The DEAL" was not passed...but chance on it after election as I see it is very slim once the water boils down here... I really see no need for it when these cocksukers paid themselves so much $$$$$$$$ for this f'ing mess... You know what I mean... Get real... let them fall on their swords and bleed... the good company's out there will pick up the pieces/mistakes and already are... don't ask US to bail YOU out you MF's... If I have anything to say about it...YOU, and you know the scum Fer's that got paid the millions++++ you need to go to jail and rot and pay the shit back.... JMHO as always... Oil goes down to $75 until winter comes in...most oil stocks with it as always...CLR my FAV pick here and stair-step into a position in this market to get a good average... Trade this puppy also... it is a good bet both ways... GLTA
FPP - hope others picked it up on the dip into the 2's. Some of these oil and gas micros are back where they were when oil was in the $30's. High of the year was in the 8's.
FieldPoint Petroleum Reports Second Quarter ResultsLast update: 8/14/2008 8:30:02 AM
Revenues Double while Net Income Triples Compared to Same Period Last Year
AUSTIN, Texas, Aug 14, 2008 (BUSINESS WIRE) -- FieldPoint Petroleum Corporation (FPP) today announced financial results for its Second Quarter ended June 30, 2008. Financial Highlights for the Three Months Ended June 30, 2008 Compared to the Three Months Ended June 30, 2007:
-- Total Revenues increased 101% to $2,000,192 from $995,061. -- Net Income increased 232% to $588,553 from $177,181. -- Earnings per share, fully diluted, increased to $0.07 from $0.02.
Ray D. Reaves, President and CEO of FieldPoint, stated, "Whereas this increase in revenue and earnings is primarily attributable to higher oil and natural gas prices, I am pleased to announce that our overall barrels of oil equivalent production was also up 9% for the quarter ended June 30, 2008 as compared to the same period in 2007. This increase in production was due primarily to an increase in oil production of 24%, or 14,009 barrels vs 11,277 barrels for the same period last year, and we anticipate continued increases in oil production in Q3 2008.
Oil prices increased 82%, averaging approximately $120.01 per barrel, while natural gas prices increased 64%, averaging approximately $8.88 per MCF in the second quarter of 2008. These prices compare to $65.89 per barrel for oil and $5.42 per MCF of natural gas for the same period in 2007. We also experienced increases in production and depletion expense for this period, primarily attributable to new oil and gas properties acquired."
Financial Highlights for the Six Months Ended June 30, 2008 Compared to the Six Months Ended June 30, 2007: -- Total Revenues increased to $3,509,314 from $1,896,573. -- Net Income increased to $938,402 from $311,407. -- Earnings per share, fully diluted, increased to $0.11 from $0.04. For the six month period ended June 30, 2008, overall production was up 8% on a BOE basis as compared to the six months ended June 30, 2007. This was due primarily to an increase in oil production of 20%, or 27,382 barrels vs 22,797 barrels for the comparable 2007 period. This increase, combined with higher oil and natural gas prices, led to an increase in revenues and earnings per share for the six month period. For the period, oil prices increased 74%, averaging $106.65 per barrel, and natural gas prices increased 43%, averaging $7.90 per MCF. These prices compare to $61.19 per barrel for oil and $5.51 per MCF of natural gas for the same period last year. The Company also experienced an increase in production expenses for the six month period compared with last year, and an increase in depletion expenses, primarily due to the acquisition of additional oil and gas properties.
Mr. Reaves concluded by adding, "Once again we can see the dramatic effect that market fluctuations have on our financial performance. While upward price movement has been highly beneficial to us so far this year, it also serves to remind us of the importance of continuing to build our production base.
We have committed to become more aggressive in our efforts to develop new programs which can materially expand our production levels, and to this end we have started drilling our South Texas developmental gas well in the middle and lower Wilcox sands. If this effort is successful, this could lead to the drilling of additional wells. The Company also continues to diligently search for acquisition opportunities. The Company has a strong cash position which continues to grow and so far has only utilized $3.5 million in long term debt from its $50 million Citibank credit facility. We are very optimistic that the remainder of 2008 will be an important growth stage for FieldPoint."
About FieldPoint Petroleum Corp. FieldPoint Petroleum Corporation is engaged in oil and natural gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas and Wyoming. This press release may contain projection and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such projections or statement reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and that actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ from those projected, such as decreases in oil and gas prices and unexpected decreases in oil and gas production is included in the company's periodic reports filed with the Securities and Exchange Commission (at ).
I don't really know except what I read here and there... maybe that is why they say "About 46%"? I see figures that vary on the grade of gas refined and could vary from refinery to refinery and other variables...
anyhoo, I got that info from Source: EIA March 2004 Data... I will try and find other sources also...GLTY
maybe a stupid question but why when I add up the refined products mix in a barrel of crude do i get a total of 46.93 and not 42 gallons?
What Does One Barrel Of Crude Oil Make?
*QUICK STATS
- One barrel of crude oil contains 42 gallons
- About 46% of each barrel of crude oil is refined into automobile gasoline
- In the US and Canada an average of 3 gallons of crude oil are consumed per person each day
- The US imports about 50% of its required crude oil and about 50% of that amount comes from OPEC countries
Product - Refined Gallons/Barrel
Gasoline - 19.3
Distillate Fuel Oil (Inc. Home Heating and Diesel Fuel) - 9.83
Kerosene Type Jet Fuel - 4.24
Residual Fuel Oil - 2.10
Petroleum Coke - 2.10
Liquified Refinery Gases - 1.89
Still Gas - 1.81
Asphalt and Road Oil - 1.13
Petrochemical Feed Supplies - 0.97
Lubricants - 0.46
Kerosene - 0.21
Waxes - 0.04
Aviation Fuel - 0.04
Other Products - 0.34
Processing Gain - 2.47
CLR insiders keep on buying...
Loading up on CLR right now...My strongest play right now...I meet and talked to the geo and this new find is huge... $44.83...glta...
BQI..Hope the dip today was it. I'm ready for it to move up.:)
Lexi
Nice...great info. I love BQI as do the insiders 44.45%...I have been buying a few more here last couple days but would like to see it form some support here... Going down in sympathy with oil as long as CLR and others...Had to bail but stepping back into new positions...these dips were pretty scarry...have to protect profits...JMHO and GLTY
Found this yesterday and thought it was worthy of a post...BQI
=======================
Institutional Ownership
There is significant interest in BQI by institutional investors. The 44.45% of the shares outstanding that they control represents a greater percentage of ownership than at almost any other company in the Oil & Gas Production
industry.
http://investing.businessweek.com/research/stocks/ownership/institutional.asp?symbol=BQI
Gotten from Yahoo BB.
it will hit and below it.... There is no real bottom set...so it can drop and drop drop....
I am so gladddd I can predict shit people tell me I can't... I love it because I make $......
Just as I predicted... watch it do as I say in my reply to this post...GLTA
Petrostar enters LOI to develop Sask. oil zones
2008-06-03 06:04 MT - News Release
Mr. Robert Sim reports
PETROSTAR PETROLEUM CORPORATION: LETTER OF INTENT SIGNED TO DEVELOP BAKKEN OIL PLAY IN SE SASKATCHEWAN
Petrostar Petroleum Corp. has entered into a letter of intent with Leaf & Stone Resonance Services Ltd. (L&SRS) of Saskatoon, Sask., to develop certain leaseholds acquired by L&SRS located in southeastern Saskatchewan. The leases will cover up to 12 quarter sections of freehold lands that have been acquired.
The area to be developed has two potential oil-bearing zones; the Frobisher, at a depth of approximately 500 metres, and the Bakken, at a depth of 1,100 metres to 1,400 metres.
Under the terms of the agreement, Petrostar will be the operator and provide up to $250,000 in drilling funds, which matches the technical and mineral rights acquisition costs provided by L&SRS. All future costs will be shared on an equal 50/50 basis.
It is planned to initiate a three-well drilling program, which will commence as soon as permitting and establishment of surface lease requirements for the well site are received. The initial well is to be the first of a potential three-well program designated for the project.
Petrostar is the operator of the project and has retained DJ Craven Oilfield Consultants to supervise and assemble equipment and services to prepare for spudding of the first well. At this time, the intent is to drill the three wells consecutively while the services and equipment is readily available.
The parties will also continue to locate and acquire additional lands within the general area of the Bakken play under the same terms and conditions. More developments will be forthcoming as the project proceeds.
Reece Energy tests and finds oil in first Bakken well
2008-06-06 05:51 MT - News Release
Mr. Lorne Swalm reports
REECE'S FIRST BAKKEN WELL A SUCCESS
Reece Energy Exploration Corp.'s first exploratory Bakken well has been successfully tested for oil. As previously announced (see news issued in Stockwatch), the well (50-per-cent net to Reece) penetrated the Bakken formation for the full-lateral section, extending approximately 1,400 metres horizontally. Oil was detected in the majority of the samples and "oil over the shaker" was observed during drilling. The well has been tested over the past six days with satisfactory oil recovery without fracture treatment. Reece and its partner will evaluate the well in the coming weeks.
"We are very pleased to have resource success in the first of our three exploratory Bakken areas. This success will help to prove up the 6,000 gross acres of joint venture lands in the immediate area and bolsters our optimism for the our other two Bakken project areas," said Lorne Swalm the president and chief executive officer of Reece.
As of today's date, the drilling rig is moving to the company's second Bakken location to commence drilling in the second of the three larger land blocks acquired by Reece and its joint venture partner in the area.
Saskatchewan land sales leave Alberta in the dust
No, it's not because of the increased royalty rate, says drillers association
Calgary Herald; Canwest News Service
Friday, June 13, 2008
CALGARY - Saskatchewan continues to set new records for land buying after it racked up the third-largest land sale in its history Thursday, while Alberta recorded one of its lowest.
Saskatchewan's June land sale raised $142.5 million while a similar auction in neighbouring Alberta brought in $20.25 million.
Saskatchewan's year-to-date revenue figure for 2008 now stands at $605.4 million, shattering the previous single-year record of $250.3 million set last year. It was also the third-consecutive sale in excess of $100 million, something that has never happened before in Saskatchewan.
The numbers contrast with $415 million raised thus far in Alberta, down sharply from $705 million in 2007 when oil and natural gas prices were half of what they are today.
Driving the interest in Saskatchewan is a light oil discovery called the Bakken play, which the Canadian Society of Petroleum Geologists (CSPG) says holds 100 billion barrels in Canada.
The United States Geological Survey (USGS) estimates an additional 400 billion barrels are south of the border, which is larger than the proven reserves of Saudi Arabia.
Nancy Malone, the Canadian Association of Oilwell Drilling Contractors' economic analyst, said the Alberta government's decision to jack up royalty rates is only one factor in the exodus of land dollars out of Alberta into neighbouring provinces like Saskatchewan and British Columbia.
"Until we find something new in Alberta, everybody is going where the opportunity is," she said.
Saskatchewan's sale was also noteworthy for the highest price paid for a single parcel at just under $39 million. Standard Land Company Inc. purchased the 9,094-hectare exploration licence located south of Lake Alma, near the Canada-United States border, making it the highest price ever paid for a single plot in the province's history.
© The Edmonton Journal 2008
Tropical Storm Dolly May Become Hurricane in Gulf (Update4)
By Demian McLean
July 21 (Bloomberg) -- Tropical Storm Dolly entered the Gulf of Mexico, where it may strengthen into a hurricane in the next day while sparing Mexico's state-owned oil rigs. A hurricane watch was issued for Texas's southern coast.
Dolly's center was about 55 miles (105 kilometers) north- northeast of Progreso, Mexico, and heading west-northwest above the area's warm waters, the U.S. National Hurricane Center said just before 11 a.m. Miami time. Sustained winds were about 50 miles per hour.
A three-day forecast shows Dolly crossing the Gulf and making landfall near Brownsville, Texas, along the Mexican border. It could become a hurricane by tomorrow, packing winds of at least 74 mph, the center said. The watch means hurricane conditions are possible in the area within 36 hours.
``The storm is not expected to affect U.S. oil and natural- gas operations in the Gulf,'' AccuWeather.com forecaster Kate Wotring said in an e-mail. Heavy rains and high surf could hit the Gulf Coast from Louisiana to Mexico by tomorrow, bringing waves of up to 6 feet (1.8 meters), Wotring said.
Petroleos Mexicanos, the third-largest oil supplier to the U.S., said oil workers would stay put, as the storm is likely to pass north of its drilling platforms.
Pemex and Shell
Pemex closed an oil export terminal in the Gulf. The terminal at the port of Cayo Arcas shut at 10 p.m. yesterday, said Ivan Alberto Avalos, a spokesman for the port, in a telephone interview. Pemex is Mexico's state oil company.
Royal Dutch Shell Plc, Europe's biggest oil company, said it evacuated about 125 workers from oil platforms in the Gulf yesterday and will remove 60 others today. Exxon Mobil Corp., the world's biggest energy company, said it was preparing platforms for heavy rain and high winds.
The Texas hurricane watch stretches from Brownsville north to Port O'Connor, along the southern portion of Texas's coastline, according to the latest public advisory from the National Hurricane Center.
Dolly's tropical storm-force winds, of at least 39 mph, extend outward by up to 175 miles and may affect the western tip of Cuba with gusts today, the center said. The storm is moving at about 18 mph.
To the northeast, Tropical Storm Cristobal continued away from North Carolina's Outer Banks islands and was about 190 miles east-northeast of Cape Hatteras, the center said. Packing maximum sustained winds of 65 mph, the system was moving northeast at 13 mph.
``On this track Cristobal will be well offshore of the mid- Atlantic coast later today,'' the center said.
To contact the reporters on this story: Demian McLean in Washington at dmclean8@bloomberg.net;
BQI: Oilsands Quest, a Calgary-based junior, has spearheaded
Saskatchewan's first bitumen play.
It's located in the province's far northwest, adjacent to
Alberta's giant Athabasca oilsands formation.
The company has oilsands holdings totalling 618,000 acres,
the greater part in Saskatchewan with contiguous sections
in Alberta.
In fact, it's Canada's largest continuous oilsands land assembly,
achieved because no major producer took the prospect seriously.
Much of that vast acreage remains largely uncharted despite
three seasons of aggressive exploration.
Last winter, Oilsands Quest drilled 175 wells,
including 150 in Saskatchewan and 25 in Alberta.
Paul O'Donoghue, its VP of investor relations and corporate
planning, says, "We expanded a program to further delineate
Axe Lake, and also stepped out and drilled exploration wells."
Initial production is slated to come from the Axe Lake area,
with pay zones at a depth of 185 to 200 m.
Vertical steam injection should begin on the first test site
in September, whose results will determine the time lines
for future activity.
O'Donoghue says Oilsands Quest is holding discussions with
other companies with a view to jointly developing the
regional prospect.
The Saskatchewan Research Council (SRC) notes that the
province's little-recognized bitumen deposits were
previously deemed too deep for strip mining but too shallow
for exploitation through steam injection.
SRC energy VP Ernie Pappas says the provincial agency is now
working with producers to come up with solutions.
"We believe there is a process for successfully producing the
oil from depths of 200 m," Pappas says.
These are boom times for many energy companies in Saskatchewan.
And because Premier Brad Wall, who was sworn in last November,
has made it clear that the economic prosperity of the province
will be a priority of his government, it looks like
Saskatchewan will continue to have an increasingly larger
role in Canada's energy future for years to come.
Oil will now test the 100DMA of $121.38 now after breaking support... JMHO and GLTA
Russian oil company signs major energy deal with Iran
Tehran, Jul 18, 2008 (BBC Monitoring via COMTEX) --
The National Iranian Oil Company (NIOC) and Russian giant gas company Gazprom -
have signed an agreement for the development of Iran's oil and gas fields.
The memorandum of understanding was inked by NIOC Managing Director Seyfollah Jashnsaz and Gazprom chief executive Alexei Miller in Tehran on Sunday [13 July]. Gazprom is the largest gas company in the world.
Iranian Oil Minister Gholamhoseyn Nowzari said on Monday that Iran and Russian are determined to expand their cooperation in the oil and gas sectors.
We support the cooperation between the National Iranian Oil Company and Gazprom, Nowzari stated. This agreement has extensive dimensions.
According to the MOU, NIOC and Gazprom will cooperate in the development of Iran's oil and gas fields, the development of Iran's North Azadegan oil field, the transfer of oil from the Caspian Sea to the Sea of Oman, swaps of Russian gas, technology transfers, and the construction of a refinery in northern Iran.
The MOU also leaves the door open for Gazprom to participate in the Iran-Pakistan-India gas pipeline project.
The Gazprom CEO said, Based on the agreement, we will form working groups, and one month after the signing of the deal we will start the work.
The agreement states that Gazprom will participate in developing Iran's massive South Pars Gas Field, though no specific phase has been mentioned yet. The details of the work on South Pars will be clarified in the future, the Iranian Oil Ministry announced.
It was also agreed that a working group would be established in the next 30 days to work out the specifics of the cooperation.
According to the MOU, NIOC and Gazprom agreed to establish a joint company for cooperation in the energy sector.
The Iranian oil minister said the joint company will implement projects in Iran, Russia, and third countries, including South American states.
Iran and Russia also agreed to increase their cooperation in projects in neighbouring Asian countries.
Nowzari said this is the first time that Russias Gazprom and Iran's NIOC have signed such a major energy deal.
The two sides agreed to implement the terms of the agreement as soon as possible.
The presidents of the two countries are in favour of Iran-Russia cooperation in the field of energy, he added.
The NIOC managing director said Miller proposed a gas swap deal in which Iran would receive gas from Gazprom and in return export the same amount of gas to Russian customers from the Persian Gulf. NIOC will also participate in the development of Russian oil and gas fields, he added.
We hope this cooperation will be the beginning of a new day in economic relations between the two great countries of Iran and Russia and lead to multilateral cooperation in other economic spheres, Jashnsaz said.
Source: Mehr news agency, Tehran, in English 1325 gmt 18 Jul 08
July 17, 2008...SIOUX FALLS, S.D.
Two major energy companies will spend $7 billion to nearly double the amount of crude oil flowing through a pipeline from Canada's tar sands to the U.S. Gulf Coast, highlighting intense demand for crude that was once too expensive to pull from the ground and process.
Alberta-based TransCanada Corp. and Houston-based ConocoPhillips Co. said yesterday that they will add 500,000 barrels of daily capacity to the 1,980-mile Keystone Pipeline, which connects Hardisty, Alberta, with a delivery point near terminals in Port Arthur, Texas.
Demand for oil has driven the price for a barrel up 80 percent in the past year and up about 40 percent since the first of the year.
Unlike the benchmark light, sweet crude, oil extracted from the tar sands of northern Alberta, previously an afterthought in the crude market, is difficult to refine into gasoline and diesel.
U.S. refiners have been converting plants to handle the thicker Canadian crude as supplies for lighter crude continue to tighten, much to the consternation of environmental groups.
Alberta has vast reserves of oil sands. Industry officials estimate that the region could yield as much as 175 billion barrels of oil, which would make Canada second to Saudi Arabia in crude oil reserves.
In western Canada, oil sands production has grown fourfold since 1990 and exceeded 1.2 million barrels a day last year, according to the Canadian Association of Petroleum Producers. That could grow to 3 million barrels a day by 2015. Current global output of oil is about 85 million barrels a day.
Gulf Coast refiners have traditionally processed crude oil from Mexico and Venezuela. But output from the Mexican Cantarell oil field is in decline, and many Venezuelan contracts will change over the next couple of years as the South American country shifts its oil exports from the United States to other markets around the world, said Russ Girling, president of TransCanada's pipelines division.
TransCanada said construction has begun in Manitoba and North Dakota.
The company hopes to begin delivering crude from tar sands through its 36-inch pipeline to refineries in Wood River and Patoka, Ill., by late 2009 and to Cushing, Okla., by late 2010.
The project, the total cost of which has risen to $12.2 billion, is expected to move 1.1 million barrels of oil a day eventually.
Copyright © 2008, The Baltimore Sun
Aspen Exploration Announces Two Successful Gas Wells
Monday June 23, 11:25 am ET
DENVER, CO--(MARKET WIRE)--Jun 23, 2008 -- Aspen Exploration Corporation (OTC BB:ASPN.OB - News), with offices in Bakersfield, California and Denver, Colorado, announced that Aspen has completed the drilling of two wells from its 2008 drilling program. The SJDD #11-1 well, located in the Cache Creek Gas Field, Yolo County, California, was drilled to a depth of 4,111 feet and encountered approximately 24 feet of potential gross gas pay in two intervals in the Starkey formation. One of these intervals was perforated and tested gas on a 10/64" choke at a stabilized flow rate of 750 MCFPD and 1380 psig flowing casing pressure. The shut in tubing pressure was 1440 psig and shut in casing pressure was 1500 psig. Aspen has a 30% operated working interest in this well. Gas sales commenced May 20, 2008.
ADVERTISEMENT
The Johnson Unit #13 well, located in the Malton Black Butte Field, Tehama County, California, was drilled to a depth of 4,896 feet and encountered approximately 125 feet of potential gross gas pay in several intervals in the Forbes formation. This well is currently shut in awaiting completion. Aspen has a 31% operated working interest in this well.
Drilling commenced on the Eastby #1-1 well located in the Malton Black Butte Field in Glenn County, California. This well is scheduled to test the Forbes Formation at a total depth of approximately 5,010 feet. Total cost of the well is estimated at $1,000,000; Aspen has a 30.00% operated working interest in this well.
Aspen has entered into an agreement to participate as a non-operated partner in a new exploration program in the Malton-Black Butte Gas Field in Glenn and Tehama Counties, California. This area is east of Aspen's Malton Black Butte project. Several prospects have been identified in this area that will target Eocene, Kione, and Forbes objectives at depths ranging from 1700 to 5800 feet. The first three wells in this project have been completed as gas wells. The fourth well commenced drilling this week, and additional wells are planned in this project for the Fall of 2008. Aspen has a non-operated 7% working interest in the project.
Seismic processing has been completed on Aspen's Strain Ventures 3D-seismic program in Colusa County, California. This 12-square mile survey is adjacent to Aspen's prolific West Grimes Gas Field. Interpretation of this data by Aspen's consultants is in progress and preliminary results have revealed several potential targets. Aspen plans to drill at least two prospects in the West Grimes-Strain Ventures area in the Fall of 2008, contingent upon rig availability and approval of necessary permits. Aspen has a 32% operated working interest in this project.
Aspen currently operates 66 producing gas wells in California and also has an interest in 25 non-operated gas wells.
In 2007 Aspen acquired a 12.5% working interest in the Poplar producing oil field in Roosevelt County, Montana. After 110% payout, Aspen's interest will revert to 10%. Average gross daily production for the months of April and May, 2008, was 287 barrels oil per day. This field also produces a substantial amount of water that is disposed of by injection into a subsurface formation. Aspen believes that ongoing remedial work will increase production over time. Geologists familiar with the Poplar Field believe the Bakken and Nisku Formations, deeper horizons than those currently being produced, have potential in this field.
For more information, contact R. V. Bailey, CEO, in Aspen's Denver office at 303-639-9860. Aspen invites interested parties to visit Aspen's web site at www.aspenexploration.com and be sure to register in the contact box for updated news releases and other information
SCU (.98):Storm Cat Energy Corporation Provides Update on Fayetteville Shale Production Activity
DENVER and CALGARY, Alberta, July 8, 2008 /PRNewswire-FirstCall via COMTEX/ -- Storm Cat Energy Corporation today provided an update of its operations in the Company's Arkansas Fayetteville Shale acreage.
The first three of the Company's 2008 Fayetteville development program wells are now on production and tied into sales, two of which have undergone State of Arkansas Form 13 testing. Each well continues to produce significant volumes of fracturing fluid. Notwithstanding, the Owen 1-18H tested at a rate of 1,240 thousand cubic feet per day (Mcf/d) and the Ballard 1-18H tested at a rate of 1,341 Mcf/d. The Company is very encouraged by these test rates and anticipates that production from these wells will increase as cleanup progresses. The third well, the Roberts 1-13H, is tied into sales and is about to undergo a Form 13 rate test.
The Company anticipates commencing hydraulic fracturing of the fourth horizontal well of the 2008 program, the Files 3-12H, this week. Drilling activity on the fifth horizontal well, the Files 2-12H, is ongoing and is approaching total depth. Finally, completion of the Vaughan 2-18 well, a shallow well testing a gas-charged zone observed in the Vaughan 1-18H well, is expected to commence later this week.
The Company is extremely pleased by the initial results observed in its 2008 wells and believes that these results further validate the Company's asset position.
ASPN 2.80 + .05 - nat gas - compare chart and trading with FPP, before the major move up.
Aspen Exploration Announces Two Successful Gas Wells
Jun 23, 2008 11:25:00 AM
View Additional ProfilesDENVER, CO -- (MARKET WIRE) -- 06/23/08 -- Aspen Exploration Corporation (OTCBB: ASPN), with offices in Bakersfield, California and Denver, Colorado, announced that Aspen has completed the drilling of two wells from its 2008 drilling program. The SJDD #11-1 well, located in the Cache Creek Gas Field, Yolo County, California, was drilled to a depth of 4,111 feet and encountered approximately 24 feet of potential gross gas pay in two intervals in the Starkey formation. One of these intervals was perforated and tested gas on a 10/64" choke at a stabilized flow rate of 750 MCFPD and 1380 psig flowing casing pressure. The shut in tubing pressure was 1440 psig and shut in casing pressure was 1500 psig. Aspen has a 30% operated working interest in this well. Gas sales commenced May 20, 2008.
The Johnson Unit #13 well, located in the Malton Black Butte Field, Tehama County, California, was drilled to a depth of 4,896 feet and encountered approximately 125 feet of potential gross gas pay in several intervals in the Forbes formation. This well is currently shut in awaiting completion. Aspen has a 31% operated working interest in this well.
Drilling commenced on the Eastby #1-1 well located in the Malton Black Butte Field in Glenn County, California. This well is scheduled to test the Forbes Formation at a total depth of approximately 5,010 feet. Total cost of the well is estimated at $1,000,000; Aspen has a 30.00% operated working interest in this well.
Aspen has entered into an agreement to participate as a non-operated partner in a new exploration program in the Malton-Black Butte Gas Field in Glenn and Tehama Counties, California. This area is east of Aspen's Malton Black Butte project. Several prospects have been identified in this area that will target Eocene, Kione, and Forbes objectives at depths ranging from 1700 to 5800 feet. The first three wells in this project have been completed as gas wells. The fourth well commenced drilling this week, and additional wells are planned in this project for the Fall of 2008. Aspen has a non-operated 7% working interest in the project.
Seismic processing has been completed on Aspen's Strain Ventures 3D-seismic program in Colusa County, California. This 12-square mile survey is adjacent to Aspen's prolific West Grimes Gas Field. Interpretation of this data by Aspen's consultants is in progress and preliminary results have revealed several potential targets. Aspen plans to drill at least two prospects in the West Grimes-Strain Ventures area in the Fall of 2008, contingent upon rig availability and approval of necessary permits. Aspen has a 32% operated working interest in this project.
Aspen currently operates 66 producing gas wells in California and also has an interest in 25 non-operated gas wells.
In 2007 Aspen acquired a 12.5% working interest in the Poplar producing oil field in Roosevelt County, Montana. After 110% payout, Aspen's interest will revert to 10%. Average gross daily production for the months of April and May, 2008, was 287 barrels oil per day. This field also produces a substantial amount of water that is disposed of by injection into a subsurface formation. Aspen believes that ongoing remedial work will increase production over time. Geologists familiar with the Poplar Field believe the Bakken and Nisku Formations, deeper horizons than those currently being produced, have potential in this field.
For more information, contact R. V. Bailey, CEO, in Aspen's Denver office at 303-639-9860. Aspen invites interested parties to visit Aspen's web site at www.aspenexploration.com and be sure to register in the contact box for updated news releases and other information.
DISCLAIMER
This news release contains information that is "forward-looking" in that it describes events and conditions, which Aspen Exploration Corporation ("Aspen") reasonably expects to occur in the future. Expectations for the future performance of the business of Aspen are dependent upon a number of factors, and there can be no assurance that Aspen will achieve the results as contemplated herein and there can be no assurance that Aspen will be able to conduct its operations or production from its properties will continue as contemplated herein. Certain statements contained in this report using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Aspen's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. These risks include, but are not limited to: the possibility that the described operations (including any proposed exploration or development drilling) will not be completed on economic terms, if at all, or the estimates of reserves may not be accurate. The exploration for, and development and production of, oil and gas are enterprises attendant with high risk, including the risk of fluctuating prices for oil and natural gas, imports of petroleum products from other countries, the risks of not encountering adequate resources despite expending large sums of money, and the risk that test results and reserve estimates may not be accurate, notwithstanding appropriate precautions. Many of these risks are described herein and in Aspen's annual report on Form 10-KSB, and it is important that each person reviewing this report understand the significant risks attendant to the operations of Aspen. Aspen disclaims any obligation to update any forward-looking statement made herein.
ASPEN EXPLORATION CORPORATION
2050 S. Oneida St., Ste. 208
Denver, CO 80224-2426
Telephone: (303) 639-9860
Fax: (303) 639-9863
Email: aecorp2@qwestoffice.net
Web Site: www.aspenexploration.com
Contact:
R. V. Bailey
CEO
303-639-9860
aecorp2@qwestoffice.net
Saudi king says to increase oil output
(Xinhua)
Updated: 2008-06-22 20:28
JEDDAH, Saudi Arabia - Saudi King Abdullah said at the opening ceremony of the Jeddah oil meeting that his country has increased output to 9.7 million barrels a day and it is willing to increase oil output if necessary.
Saudi King Abdullah (2nd L) welcomes Japan's Economy Minister Akira Amari in Jeddah June 22, 2008. The world's largest oil exporter Saudi Arabia on Sunday proposed setting up a $1 billion OPEC fund and offered $500 million in Saudi soft loans to help poor countries cope with the high price of energy. [Agencies]
The king blamed speculation and taxes for high oil price and suggested to set up a program of 1 billion U.S. dollars similar to those that the Organization of Petroleum Exporting Countries (OPEC) set up before to solve the oil crisis. What does that mean?
The king also announced that Saudi Arabia will finance offer 500 million dollars of loan to developing countries for their developing and energy needs.
He said cooperation should be cornerstone of efforts, calling the meeting to set up a working group after the meeting is concluded to track the development of global energy market.
The meeting which gathers leaders of global oil powers and consumer nations opened on Sunday in a bid to seek ways to control oil price hikes.
Major oil producers and consumers as well as leaders from big oil firms and international organizations attended the one-day conference aimed at seeking solutions to the soaring oil prices.
Chinese Vice President Xi Jinping, who is on an official visit to Saudi Arabia, was also among the participants together with U.S. Energy Secretary Samuel W. Bodman, British Prime Minister Gordon Brown and Secretary General of OPEC Abdullah al-Badri.
The meeting came as Saudi Arabia, the world's top oil exporter, is now under unprecedented pressure after the world's oil prices have witnessed historical highs time and again in recent months, triggering protests worldwide and concerns over its damage to world's economic growth and energy security.
BSIC 2.37 - continued success - microcap Oil and gas
Basic Earth Announces All Wells On Its Antenna Federal Property in Colorado Now On ProductionLast update: 6/16/2008 2:58:00 PMDENVER, June 16, 2008 /PRNewswire-FirstCall via COMTEX/ -- Basic Earth Science Systems, Inc. (Basic or the Company) (BSIC) reported initial potentials on four more wells on its Antenna Federal property in Colorado's DJ Basin. In the southeast production facility, in addition to Basic's net revenue interest (NRI) and future J Sand production potential, the following table shows the initial production rate reported to the Colorado Oil & Gas Conservation Commission for these four new wells:
J Sand Well Name Bbls. Oil/Day MCF/Day NRI Potential USA 10-36 184 580 0.52500 No USA 23-36 99 364 0.16375 Yes USA 37-36 154 640 0.02000 No USA 39-36 22 438 0.02000 Yes
As previously disclosed, these wells are part of a sixteen well development drilling program in the heart of Colorado's Wattenberg gas field. Basic expects to have a 2% to 52.5% revenue interest in Codell/Niobrara production and a 13.125% to 52.5% revenue interest in J-Sand production (depending on actual well location). However, initially, all new wells will produce from the Codell/Niobrara formation alone. The Company expects to spend a total of $2.2 million for its share of the cost of drilling and completing these wells. Kerr-McGee Oil & Gas Onshore, LP will be the Operator of the project.
"We are excited to announce that, finally, all sixteen new wells and sixteen old wells are up and running," commented Ray Singleton, president of Basic. "As before, all of the reported initial production rates are, and have been, based on 24 hour production volumes up casing without tubing in the wells. Because of this configuration, daily production rates vary significantly and may, or may not, be indicative of future performance. Once pressures moderate, we expect to check each wellbore for obstructions and place the wells on production up tubing. Once this more conventional configuration is established we will have a better idea of where production should stabilize.
Repeating our previous statement, to this point, there have been no real surprises; there have been no dry holes, all geologic sections were present, no completion problems were encountered and, as anticipated, production rates are varied, yet still within the parameters of our initial expectations. So far, operationally, this has been a very successful venture."
Founded in 1969, Basic is an oil and gas exploration and production company with primary operations in select areas of the Williston basin, the Denver-Julesburg basin in Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast. Basic is traded on the "over-the-counter - bulletin board" under the symbol BSIC. Basic's web site is at where additional information about the Company can be accessed.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "should," "may," "will," "anticipate," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Basic intends, expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Basic, particularly the Company's Quarterly Report on Form 10-QSB for the quarters ended June 30, September 30 and December 31, 2007 in addition to the Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. SOURCE Basic Earth Science Systems, Inc.
Oilsands development in Saskatchewan -
Jun 2007 [Oil & Gas Inquirer]
Godfrey Budd
Saskatchewan has been on a steady upward economic trajectory for the last few years in no small part because of a series of successes in its oil and gas sector. Improved technology for cold heavy oil production in the Lloydminster region helped boost the province's oil production through the late 1990s into the 2000s. Natural gas production is poised for a gradual decline, oil production in recent years has held steady around the 420,000-bbl/d mark. About half of this is heavy oil.
Now, what is perhaps the last great imponderable of the province's petroleum resource-the bitumen deposits of northwest Saskatchewan-is being charted through core drilling and seismic programs operated by Oilsands Quest Inc. Part of the vast oilsands of northeastern Alberta that extends eastward across the provincial border, it is located some 200 km north of Lloydminster and beyond. Although there has been plenty of skepticism about the extent of the resource, some estimates have pegged it as high as 30 Bbbl of recoverable bitumen-if the right technology is applied.
Oilsands Quest, which merged with CanWest Petroleum Corporation last year, announced May 7 this year accelerated time lines for development of its Axe Lake discovery area, in the wake of two successful winter drilling seasons in the west-central part of a land position of 508,000 acres.
The company spent $10 million in winter 2005-2006 setting up infrastructure and drilling 24 holes. Of these, 19 intercepted McMurray bitumen. In the best three-section block, eight holes drilled had an average pay thickness of 19 m with one having a pay thickness of over 28 m. Grades of bitumen saturation by weight of up to 18 per cent were encountered. Company executives were encouraged, and firmed up plans for a second winter of drilling.
Oilsands Quest's land position in Saskatchewan extends from Township 92 to 100. Most of the holes drilled in winter 2006-2007, however, were in what the company refers to as the Axe Lake discovery area, which includes the north half of Township 94 and the south half of Township 95.
The company had as many as eight coring rigs drilling in the area, as well as six seismic rigs operating, and spent about $40 million over about five months on an aggressive winter drilling program and had drilled 150 holes by the end of the season. This program included 34 holes outside the Axe Lake area and 100 square miles of seismic work.
At peak activity last winter, there were about 200 workers running the rigs and doing related work. The Axe Lake area is in a remote region of northwest Saskatchewan, about 100 km northeast of Fort McMurray. Workers were flown in on bush planes that landed on a frozen lake. The extensive lease area required a 300-plus km network of ice roads to be built.
The company was able to save some money by hiring locally from nearby First Nations communities, and taking advantage of avoiding some of the higher costs associated with work on the Alberta side of the border.
The winter activity on the Oilsands Quest lands also included extensive electromagnetic and magnetic surveys that began in early February.
Oilsands Quest management's preliminary estimate of original bitumen resources in place (OBIP) in the Axe Lake discovery area suggests there could be as much as 1.5 Bbbl OBIP. A March 26 press release includes two sets of estimates: a high estimate pegs the OBIP at 1.25 to 1.5 Bbbl, while a best estimate pegs OBIP at 0.6 to 0.75 Bbbl. The estimates, notes the release, are in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) under NI 51-101 standards of disclosure for oil and gas activities.
"Axe Lake represents our first discovery. We don't know what the best one will be. It has not been drilled extensively yet. We've done some exploration-34 wells-and seismic outside the Axe area. A lot of exploration data suggests further prospectivity. There are other projects out there. We have established a solid base, and we are now working to establish a commercial operation," says Christopher Hopkins, president and CEO of Oilsands Quest.
In an interview, Hopkins notes that Suncor's Firebag project is just over 20 miles west and EnCana Borealis is "within six miles."
The area of the OBIP within the Axe Lake discovery covers about 36 sections.
The find was made near where Shell Canada found bitumen at a thickness of about 20 m and a depth of 150 m in the 1970s. It was likely judged as not technically feasible to exploit at the time.
Oilsands Quest has announced timelines over the next 12 to 18 months for a number of activities in preparation for a commercial thermal in situ operation. The company has begun a process to assess in situ recovery alternatives. "We are now evaluating what recovery methods are best. We are looking at the next generation of technology, and will take part in a review of the new technologies," says Hopkins.
One of the first things that were done once management was convinced that the drilling program had hit pay dirt was to buy more land. Oilsands Quest spent about $25 million on 67,000 acres-about three townships-of contiguous land on the Alberta side. The Axe Lake discovery area comprises just under 14 per cent of the company's land position in Saskatchewan.
The depth of the Axe Lake resource appears to make it suitable for thermal in situ recovery. The depth of the bitumen pay zone, Hopkins points out, is comparable to other thermal in situ projects in the McMurray formation. Axe Lake depths are in the 185 to 200 m range. Suncor's Firebag is about 250 m deep, the OPTI/Nexen's Long Lake is about 210 m deep, and Husky's Sunrise is 200 m down, says Hopkins.
Although the government of Saskatchewan has introduced a series of measures in its fiscal regime for oil and gas development in recent years, and is now generally regarded as highly competitive, it lacks a current framework for oilsands development. But that's not surprising. As recently as last year, Saskatchewan government officials were pointing out that little exploration work had been done in the region, and that it would be premature to make any strong statements about its resource potential.
To date, the Oilsands Quest permits have been covered under the province's Oil Shale Regulations of 1964. The Saskatchewan government has begun a review and is expected to finalize the terms of a regulatory and fiscal regime for oilsands development soon.
According to a report from Genuity Capital Markets, an investment banking firm, "There is speculation that these terms will be comparable to Alberta's terms."
Oilsands Quest, which has a market capitalization that has been fluctuating around the $700-million mark, has come a long way fast. Beginning in fall 2004, Oilsands Quest, then a subsidiary of CanWest Petroleum, focused on an oilsands exploration program in Saskatchewan. This quickly became the company's major project. Exploration drilling began in late 2005. When the merger between the two companies was finalized late last year, the senior management team of Oilsands Quest became senior management overall under the name Oilsands Quest Inc.
The company is pursuing activities on several fronts to develop its resource. Work is already underway to evaluate drilling data, perform lab studies for bitumen recovery, conduct economic and risk assessment studies, and develop engineering timelines for a pilot plant. Also, in short order the company will undertake reservoir modelling, drill test wells to confirm lab work, and begin negotiations for a joint venture partnership to develop the Axe Lake asset. Hopkins comments, "The challenge is for people to understand how busy we are."
BQI Breaking-OUT!!!!!!!!!!!!!!!!!!!!!
alternative fuel is not the answer right now for the Depression that is coming... OIL/Coal is the only thing that will save this country now IMO... the way it is now, we, as a country are doomed....GLTA
Storm Cat Energy Corporation Announces First Quarter 2008 Financial and Operating Results
Fri May 9, 6:06 AM
http://ca.news.finance.yahoo.com/s/09052008/30/link-finance-news-storm-cat-energy-corporation-announces-first-quarter-2008.html
DENVER and CALGARY, Alberta, May 9 /CNW/ -- Storm Cat Energy Corporation (Amex: SCU) (TSX: SME.TO) today reported first quarter 2008 financial and operating results.
During the first quarter of 2008 we made significant progress in our transition towards profitability. Our revenue for the quarter was a record $6.0 million, a 53.8% increase from the first quarter of 2007. Operating Cash Flow(1) from our oil and gas activities increased 14.8% to $2.8 million. Adjusted EBITDA(2) was $1.4 million, an increase of 484.1% over the first quarter of 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release. With improved natural gas pricing and improving production, we are building a solid foundation for future growth.
We are actively developing our assets to increase shareholder value. We are encouraged by the initial production from our first three operated wells in our Fayetteville Shale area. Additionally, we have significantly enhanced the value of our Powder River Basin ("PRB") assets through our purchase of 14,000 net undeveloped acres in our operating area. This acquisition provides us significant new drilling inventory and essentially doubles our reserve potential in the PRB. We continue to make progress in Elk Valley, an asset we believe will be important in the long term growth potential of the Company.
Financial Update (all figures in U.S. Dollars)
Natural gas revenue for the quarter ended March 31, 2008 was $6.0 million, representing a 53.8% increase over first quarter 2007. We accomplished this record revenue through pure organic growth.
Production sales volume for the first quarter of 2008 was a record 987.1 Million cubic feet (MMcf) an increase of 48.3% over first quarter 2007. We have increased sales volumes organically the last five quarters.
For the quarter, we reported a net loss of $3.6 million, or $0.04 per share, as compared to a net loss of $1.4 million, or $0.02 per share, for the first quarter of 2007.
Inclusive of hedging, the average realized gas price for the first quarter was $6.10 per thousand cubic feet (Mcf), 3.7% higher than the first quarter 2007 average price of $5.88 per thousand cubic feet (Mcf). Excluding hedging, the realized gas price for the first quarter of 2008 was $5.98 per Mcf.
Gathering and transportation expenses increased approximately $0.2 million from $0.6 million in the first quarter of 2007 to $0.8 million in the first quarter of 2008. The increase in total expense was a direct result of increased production volumes.
Lease operating expenses (excluding taxes) increased to $1.7 million in the first quarter of 2008 compared to $0.6 million in the first quarter of 2007. This increase resulted primarily from additional wells added through our successful drilling program, higher per well lease operating costs resulting from fuel and generator rental costs associated with new wells in our PRB development areas where the electrical infrastructure has yet to be installed and higher per well lease operating costs on our Sheridan and Ford Ranch areas resulting from higher water production from sales interruptions in the fourth quarter of 2007 and the first quarter of 2008.
Ad valorem and property taxes increased approximately $0.4 million to $0.7 million in the first quarter of 2008 compared to $0.3 million in the first quarter of 2007. The increase resulted from gas volume increases over the past year and slightly higher gas prices in the PRB during the first quarter of 2008.
Depreciation, depletion and amortization increased by $0.6 million to $2.2 million in the first quarter of 2008 compared to $1.6 million in the first quarter of 2007. This increase resulted from increased production resulting from our successful drilling activities over the past year.
Total assets increased 4.0% to $137.8 million at March 31, 2008 from $132.6 million at year-end 2007. The book value of oil and gas properties increased 5.0% to $123.1 million at March 31, 2008 from $117.3 million at year-end 2007.
Weighted average shares outstanding for the first quarter 2008 increased to 81.1 million as compared to 80.5 million in the first quarter of 2007. The increase in average shares outstanding is attributed to the exercise of outstanding options, the vesting of restricted share units and the issuance of new restricted share units.
Operations Update (all figures in U.S. Dollars)
Current total net production is 15.3 million cubic feet per day (MMcf/d), an increase of 25.4% from 12.2 MMcf/d at year end 2007.
Powder River Basin
During the first quarter of 2008 we invested a total of $5.5 million in the PRB. These capital dollars were used for drilling, completion, permitting, staking and water management plans for the 2008 drilling programs, as well as roads, water management, infrastructure upgrades and well repair. We drilled 11 wells in the PRB during the quarter and have since drilled six additional wells.
As previously announced, on April 15, 2008, we acquired approximately 14,000 undeveloped net acres in Sheridan County, Wyoming for approximately $5.6 million. The acquisition acreage is located in and around our current operations in the PRB. The acquisition increases our PRB acreage to 50,000 net acres and adds an additional two years of drilling inventory in the PRB, increasing our total drilling inventory to four years (based on current development plans).
Fayetteville Shale
We invested $2.7 million in capital in our Fayetteville Shale project in the first quarter of 2008. We commenced our 2008 drilling with the spudding of the first five wells. The 2008 drilling program continues to progress. Completion activities on the Ballard 1-18H, our first 2008 horizontal well, are expected to occur within the next week. The drilling of the horizontal lateral of the second 2008 well, the Owen 1-18H, is underway.
We are currently producing and selling gas from three operated wells, the Kamalmaz 1-13H, the Vaughan 1-18H and the Files 1-12H. As previously announced, the high pressure pipeline connecting our acreage to the Ozark interstate pipeline was placed in service and we achieved first sales in mid-April.
Elk Valley, B.C.
In Elk Valley we have nine wells on production and continue to progress in our dewatering efforts. We invested $0.4 million in the first quarter of 2008 in connection with our dewatering activities in the project. Additionally, to advance our de-watering, installation of larger down hole equipment and fluid level sensors has been completed. We remain encouraged by the gas rates we are observing and remain in active discussions with third-party pipeline operators concerning the design and possible installation of a gas sales pipeline.
Storm Cat's fixed-price natural gas hedges are summarized as follows:
2008 remaining -- 3,094,500 MMBtu at average price $7.02 CIG
2009 -- 4,603,000 MMBtu at average price $7.22 CIG
2010 -- 1,295,000 MMBtu at average price $6.90 CIG
Financial schedules accompany this press release. Please reference the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission and with Canadian securities regulators on SEDAR for important notes to the financial statements.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to potential future production and growth, proposed new wells and infrastructure improvements affecting the Company's operations. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (http://www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2007.
CONSOLIDATED BALANCE SHEETS (Stated in U.S. Dollars and in thousands, except share amounts) March 31, December 31, 2008 2007 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $874 $1,133 Accounts receivable: Joint interest billing 1,470 1,701 Revenue receivable 3,447 2,444 Fair value of derivative instruments - 1,760 Prepaid costs and other current assets 2,847 2,941 Total current assets 8,638 9,979 PROPERTY AND EQUIPMENT (full cost method), at cost: Oil and gas properties: Unproved properties 50,953 51,438 Proved properties 86,454 78,096 Less accumulated depreciation, depletion, and amortization (14,264) (12,228) Oil and gas properties, net 123,143 117,306 Other property 1,113 1,180 Accumulated depreciation (848) (778) Total other property, net 265 402 Total property and equipment, net 123,408 117,708 OTHER NON-CURRENT ASSETS: Restricted cash 351 685 Debt issuance costs, net of accumulated amortization of $2,274 and $1,988, respectively 3,198 3,435 Accounts receivable long-term 1,354 759 Fair value of derivative instruments 888 - Total other non-current assets 5,791 4,879 Total assets $137,837 $132,566 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $7,406 $5,825 Revenue payable 2,422 1,678 Accrued and other liabilities 4,185 4,131 Interest payable (13) 12 Share-based payments liability 504 394 Fair value of derivative instruments 6,849 - Total current liabilities 21,353 12,040 NON-CURRENT LIABILITIES: Ad valorem taxes payable 276 0 Asset retirement obligation 1,806 1,713 Fair value of derivative instruments - 183 Bank debt 51,311 43,056 Convertible notes payable 50,195 50,195 Total non-current liabilities 103,588 95,147 Total liabilities 124,941 107,187 SHAREHOLDERS' EQUITY: Common shares, without par value, 69,834 69,834 unlimited authorized, issued and outstanding: 81,096,070 at March 31, 2008 and 81,087,320 at December 31, 2007 Additional paid-in capital 5,778 5,640 Accumulated other comprehensive income (loss) (1,536) 7,483 Accumulated deficit (61,180) (57,578) Total shareholders' equity 12,896 25,379 Total liabilities and shareholders' equity $137,837 $132,566 CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in U.S. Dollars and in thousands, except share and per share amounts) For the Three Months Ended March 31 2008 2007 NATURAL GAS REVENUE $6,017 $3,912 OPERATING EXPENSES: Gathering and transportation 803 561 Lease operating expenses 1,664 576 Production and ad valorem taxes 739 327 General and administrative 1,716 2,662 Depreciation, depletion, amortization and accretion of asset retirement obligation 2,162 1,634 Total operating expenses 7,084 5,760 Operating loss (1,067) (1,848) OTHER INCOME (EXPENSE): Interest expense (2,269) (629) Interest and other miscellaneous income 20 32 Amortization of deferred financing costs (286) - Total other income (expense) (2,535) (597) Loss before taxes (3,602) (2,445) Recovery of future income tax asset from flow-through shares - 1,095 NET LOSS $(3,602) $(1,350) Basic and diluted loss per share $(0.04) $(0.02) Weighted average number of shares outstanding 81,087,416 80,498,487 CONSOLIDATED STATEMENT OF CASH FLOWS (Stated in U.S. Dollars and in thousands) For the Three Months Ended March 31, 2008 2007 Cash flows from operating activities: Net loss $(3,602) $(1,350) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Recovery of future income tax asset from flow-through shares - (1,090) Share-based payments 266 454 Depreciation, depletion, amortization and accretion of asset retirement obligation 2,162 1,677 Amortization of debt issuance costs 286 - Changes in operating assets and liabilities: Accounts receivable (673) 1,437 Other current assets (21) (1,538) Accounts payable (1,050) (456) Accrued interest and other current liabilities 7,745 (1,736) Net cash provided by (used in) operating activities 5,113 (2,602) Cash flows from investing activities: Restricted cash 1,075 - Capital expenditures -- oil and gas properties (6,842) (21,446) Capital expenditures - other assets 51 (11) Fair value of derivatives (8,203) 378 Net cash used in investing activities (13,919) (21,079) Cash flows from financing activities: Issuance of common stock - 811 Debt issuance costs 101 (7,630) Proceeds from bank debt 8,255 - Proceeds from convertible notes payable - 32,950 Net cash provided by financing activities 8,356 26,131 Effect of exchange rate changes on cash 191 (1,017) Net decrease in cash and cash equivalents (259) 1,433 Cash and cash equivalents at beginning of period 1,133 5,299 Cash and cash equivalents at end of period $874 $6,732 Supplemental disclosure of cash flow information: Cash paid for interest $1,176 $792 Supplemental disclosure of non-cash investing and financing activities: Capital accruals and asset additions $10,049 $5,300 Increase in asset retirement obligation $64 $44 RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Stated in U.S. Dollars and in thousands) For the Three Months Ended March 31, 2008 2007 Net loss $(3,602) $(1,350) Depreciation, depletion, amortization and accretion 2,162 1,634 Interest Expense 2,249 597 Income Taxes - (1,095) Amortization of Debt Issuance Costs 286 - EBITDA 1,095 (214) Stock-based compensation expense 266 447 Adjusted EBITDA(1)(3) $1,361 $233 RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOW (Stated in U.S. Dollars and in thousands) For the Three Months Ended March 31, 2008 2007 Operating loss $(1,067) $(1,848) General and administrative 1,716 2,662 Depreciation, depletion, amortization and accretion 2,162 1,634 Operating Cash Flow (2)(3) $2,811 $2,448 (1) We have included Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation expense) because we believe it provides investors with a useful industry comparative and is a financial measure used by management to assess the performance of our Company. (2) We have included Operating Cash Flow (natural gas revenues less lease operating expenses, gathering and transportation expenses and production taxes) because we believe it provides useful information to assess our performance and to measure our cash flows from operations for our investors. (3) We believe EBITDA, Adjusted EBITDA and Operating Cash Flow provide useful measures of cash flows from operations for our investors because EBITDA, Adjusted EBITDA and Operating Cash Flow are industry comparative measures of cash flows generated by our operations and because they are financial measures used by management to assess the performance and liquidity of our Company. EBITDA, Adjusted EBITDA and Operating Cash Flow are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered in isolation or construed as a substitutes for net income (loss) or other operations data or cash flow data prepared in accordance with accounting principles generally accepted in the United States of America for purposes of analyzing our profitability or liquidity. In addition, not all funds depicted by EBITDA, Adjusted EBITDA and Operating Cash Flow are available for management's discretionary use. For example, a portion of such funds are subject to contractual restrictions and functional requirements to pay debt service, fund necessary capital expenditures and meet other commitments from time to time as described in more detail in the Company's 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 17, 2008. EBITDA, Adjusted EBITDA and Operating Cash Flow, as calculated, may not be comparable to similarly titled measures reported by other companies
Contacts
William Kent
Director
Investor Relations of Storm Cat Energy Corporation
+1-303-991-5070 Web Site: http://www.stormcatenergy.com
Admiral Bay Acquires 29 Wells and 39,000 Net Acres in Devon Project Area and Partners Interest in Pipeline
Fri May 23, 4:56 PM
http://ca.news.finance.yahoo.com/s/23052008/28/link-finance-news-admiral-bay-acquires-29-wells-39-000-net.html
CENTENNIAL, COLORADO--(Marketwire - May 23, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that it has reached agreement to acquire approximately 39,000 net acres, 28 producing and SI wellbores and a SWD well in the Ft. Scott Project that immediately offsets its Devon Project. The Company also acquired the 50% interest in the Bourbon County Pipeline ("BCPL") it does not currently own. The acquisition more than doubles Admiral Bay's net acreage position in the Devon Project area and gives it complete control of the gathering system. This new acreage adds approximately 50 bcf of 3P reserves potential to the Devon Project area. The Ft. Scott Project currently produces 50-80 mcfpd into the BCPL system. The Company is reviewing alternatives for increased activity in this area to grow production and reserves.
The Company will issue 3 million shares of its common stock to the owners of the Ft. Scott Project and BCPL. In addition, the sellers will have a 25% back in interest after 120% payout on a project basis on the Ft. Scott Project acreage. One of the sellers, Running Foxes Petroleum ("RFP"), owns a minority interest (less than 10% percent in aggregate) in both BCPL the Ft. Scott Project, and is controlled by Steven A. Tedesco, President, CEO and a director of Admiral Bay. The other seller is an unaffiliated private company. RFP and the private company acquired their interest in the Ft. Scott Project and BCPL prior to Mr. Tedesco joining Admiral Bay.
Closing of the transaction is contingent upon approval from the TSX Venture Exchange for the issuance of the stock.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Admiral Bay Updates Activity in SE Kansas Projects
Tue Jun 3, 4:52 PM
http://ca.news.finance.yahoo.com/s/03062008/28/link-finance-news-admiral-bay-updates-activity-se-kansas-projects.html
CENTENNIAL, COLORADO--(Marketwire - June 3, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to update activity in its projects in SE Kansas. In the Shiloh field, the Company has ordered two new electric compressors that will replace its current gas powered unit allowing increased sales and lower operating costs. Delivery is scheduled for late summer. It has also seen success utilizing compressed air to clean up near wellbore damage in several wells. This method, termed "huff and puff" injects air into the reservoir that loosens up coal fines that have flowed to the near well bore resulting in restriction to the flow of water and gas. The method as applied has turned around wells that may have been damaged by fracing with flow rates increasing up to 150% as a result. The cost is minimal and three to five wells can be done in a day. A "huff and puff" test program has also been carried out in the Devon field on 4 wells with similar results.
In the Mound Valley field, the Company has commenced a 20 well drilling program that will extend its production to the west and test new acreage. A new amine plant and dehy have been installed and additional upgrades to the gathering system are ongoing to handle the anticipated production from the new wells.
In the Santa Rita project, the Company is reviewing proposals to fracture stimulate the coals as well as the Chattanooga (Woodford) shale in its existing wells. It expects to test these wells this summer.
The Company has granted 750,000 options at $0.29 (CDN) to various employees, officers and directors of the company. The options vest over a period of two years and are exercisable for a period of five years until June 3, 2013.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
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