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we will find out soon
maybe this week
I will listen to that advise
im sure they will give an update they want to make money right
its might run on no news
Now Reading: Investors Who See ‘Froth’ in Market Go All In for Oil
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Investors Who See ‘Froth’ in Market Go All In for Oil
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by Bradley OlsonMatthew MonksDawn Kopecki
7:09 PM CDT
April 19, 2015
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Cash is King for Shale Producers
Cash is King for Shale Producers
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Joseph Gladbach and his fellow bankers at Jefferies Group field three to five calls a day from investors eager to park their millions in energy stocks or bonds in the worst down cycle in 30 years.
They’re no dummies, Gladbach says. One of the biggest mysteries of the oil market crash is why the money hasn’t dried up. The collapse in crude prices was supposed to devastate companies and spook investors after wiping more than $200 billion off the balance sheets of U.S. and Canadian producers. It didn’t.
As industry luminaries gather at the IHS CeraWeek Energy Conference in Houston this week to ponder the implications of $50-a-barrel crude, the money keeps piling into oil, with hedge funds, buyout firms and asset managers rushing to claim a spot at the table.
“There is just so much money,” said Gladbach, who noted that more than $100 billion has been raised and set aside for energy investments by the likes of Blackstone Group LP and Carlyle Group LP.
Many of the investors are newcomers to the industry, drawn by the hope of turning a quick profit on market fluctuations. Some are seeking a haven from inflated assets in other industries, or positioning themselves to take over distressed companies, according to interviews with more than a dozen investors and bankers that have helped energy companies raise money this year.
High Interest
The structure of many debt offerings has put new investors near the front of the line should any of the companies fail. These new investors may be able to take over assets that could increase significantly in value in a recovery. And in the meantime, the loan pays off on higher-than-average interest.
Private equity and hedge fund groups with long experience in energy see the downturn as an ideal time to buy in cheap to strong assets and management teams.
“It’s a natural place for investors to evaluate, where there has been a clear correction in a world where other assets are fairly to fully priced,” said Eric Scheyer, head of the energy group at hedge fund Magnetar Capital, who oversees a team that manages more than $4 billion.
EIG Global Energy Partners spent $3.6 billion on energy companies in a six-week shopping spree earlier this year, including a $1 billion deal with Breitburn Energy Partners LP in March.
“It’s been a very active period,” said Bill Sonneborn, president and chief executive officer of the Washington-based private equity firm. “They all relate to similar themes, which is the energy sector under fire.”
Preferred Equity
EIG stepped in to help Breitburn repay a loan after its bank tightened credit limits. As part of the arrangement, EIG bought $650 million in bonds that pay 9.25 percent interest and $350 million of preferred equity that gave EIG an 18 percent voting stake in the oil producer and a seat on the board.
By comparison, the $500 million of senior unsecured notes of larger producer EOG Resources Inc. that mature in 2025 pay 3.15 percent.
EIG hedged its bet by demanding convertible preferred equity instead of Breitburn’s common stock. The preferred equity acts more like a bond in that it pays 8 percent interest, gives EIG a minority interest in the company and puts EIG ahead of common shareholders if the company goes bust and needs to be liquidated. It also gives EIG the option to convert it into common equity later if the stock price recovers.
Being Selective
U.S. and Canadian explorers sold about $12 billion in stock in the first three months of the year, in the sector’s busiest quarter for equity sales in eight years, according to data from Credit Suisse Group AG. Whiting Petroleum Corp., Encana Corp. and Noble Energy Inc. raised about $1 billion each selling shares in February and March.
The flood of funding from capital markets may prolong the downturn by propping up distressed producers and allowing them to keep pumping, according to Bloomberg Intelligence.
Magnetar has invested in several of the energy equity offerings, but also has been selective about its deals, Scheyer said. Not all turn out well. Encana, which issued more than $1.1 billion in stock, saw shares fall 7.6 percent in the week after the March 4 offering, and they didn’t rise above the offer price for about a month. Emerald Oil Inc., which drills in North Dakota’s Bakken shale formation, has fallen 46 percent from its $1.12 additional offering price on Feb. 5.
Buyers of the $1 billion secondary Whiting Petroleum Corp. shares sold March 23 have fared better. The stock was up about 17 percent as of Friday from the $30 offering price, according to data compiled by Bloomberg.
Scheyer looks for companies with solid executives and growth potential that are responding to the downturn by cutting spending and cleaning up their balance sheets. Magnetar chose not to buy shares in several companies that were selling equity to plug short-term cash flow holes, he said.
Longterm Bets
About 10 percent of the demand for energy shares is coming from retail investors looking to flip stock through online brokers, according to the bankers and investors. That’s dwarfed by about 50 percent that are making a longer term bet on the only asset class in the U.S. offering bargains.
“Interest rates are so low, a lot of people are skeptical of froth in the broader market, and energy is one area that has seen a major correction,” said Tim Beranek, an energy portfolio manager who helps oversee about $11 billion for Denver-based Cambiar Investors LLC. “Everyone is trying to find a bottom in one of the only places where that’s possible.”
So far this year, energy is paying off. Shares of oil and natural gas producers, which fell almost 50 percent along with crude prices last year, have significantly outperformed the broader market in 2015, rising about 14 percent.
Nice Returns
That’s almost 10 times the return of the Standard & Poor’s 500 Index. New shares issued this year by North American producers have risen an average of 16 percent from their offering prices, according to data compiled by Bloomberg.
The amount of money pouring into the sector is among factors that has bolstered the valuations of producers. On average, the larger companies are trading as if oil was selling for about $74 a barrel rather than $50, according to an April 16 report by RBC Capital Markets.
Even so, Blackstone Group is among a number of private equity firms that set out to pour money into energy, but has stayed on the sidelines as public markets filled the void so far this year.
Oil companies have been “able to go out and raise a lot of debt and, in some cases, equity, publicly at values that we wouldn’t touch,” President Tony James said in an April 16 conference call with reporters. “There’s still a lot of optimism oil prices are going to bounce back, and sellers are sort of biding their time in the hopes that they don’t have to face the music.”
Laredo Success
The interest level is unprecedented, Tim Perry, head of the Americas oil and gas investment banking practice at Credit Suisse, said at a recent conference. Take, for example, the shares sold March 2 by Laredo Petroleum Inc., a producer that specializes in drilling in the Permian Basin in West Texas.
The company initially sold $650 million in stock -- almost half its market capitalization -- in two hours without any advanced marketing, said Perry, whose firm worked for Laredo in the deal. Historically, an issuance of that magnitude would have been advertised to investors two to three days ahead of time, he said. Laredo has risen 32 percent in the six weeks since the offering.
“The markets are absolutely wide open,” Perry said. Investors who are buying may not be energy specialists, but they’re “very sophisticated,” he said. “Generalist investors do not have many good alternatives because everything is so expensive
80 Oil Before 2016
By Keith Kohl | Friday, April 17th, 2015
Keith Kohl
Mark my words: By the end of 2015, oil prices are going higher.
Way higher.
And once they do, so too will the shares of companies throughout the energy sector.
Services firms, drillers, tankers, pipeline companies, and all the rest stand to gain from the rise in prices I expect to see by 2016.
In fact, I wouldn't be surprised if we saw prices rise back to normal levels in the third quarter.
Don't get me wrong; oil may not go back up to $110 per barrel like it was before the crash, but it could easily hit $80 or $90 per barrel by the end of the year.
And that's the kind of rise that will move stock prices and bestow fortunes onto investors who buy in time.
Part of my rationale for this “bold” prediction involves the recent history of oil prices.
Take a look at this chart...
OilCycle
As you can see, in 2008 and 2009, oil saw an even bigger price swing than it has over the last seven months. It moved from $143 for a barrel of Brent crude all the way below $40 per barrel.
i think some news towards end of july 2013
i hope it runs on no news
got one beliver
they must be waiting on funding plus the ok to drill and for the price of oil to go back up
53.86 a barrell 3.30 % gain today
yes the fact that your checking out the board is relevant why you still looking seeing if it goes up or you might say you enjoy watching an wreck
oil low cost high reward company
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Grid Petroleum Corp Enters Into Strategic Funding Agreement
Grid Petroleum Corp
June 30, 2014 9:20 AM
????
DENVER, CO--(Marketwired - Jun 30, 2014) - Grid Petroleum Corp. (PINKSHEETS: GRPR): The Board of Directors are pleased to announce that Grid Petroleum has entered into a strategic funding agreement with Santa Rosa Resources Inc, a privately held Delaware corporation, for the development of Grid Petroleum's leases in the Kreyenhagen Trend Properties located in the San Joaquin Valley of Central California.
Santa Rosa Resources is currently engaged in a Reg. D, rule 506(c) joint venture offering to fund the drilling of ten wells on the Kreyenhagen Trend leases owned by Grid Petroleum. Santa Rosa Resources' CEO stated, "We are looking forward to drilling five wells into the shallow Temblor Formation as well as five into the Kreyenhagen, Avenal and Monterey Shale Formations. We are hoping to produce between 2,000 and 3,000 barrels a day from the wells once the drilling program is completed."
Grid Petroleum President James Powell remarked, "We are looking forward to developing these leases and hopefully other leases in the future with Santa Rosa Resources. This mutually beneficial arrangement will assist Grid Petroleum in executing its business plan and achieving its long term goals."
The company plans to begin the mapping planning and drill site selection process for the development of these ten wells.
Upon completion of the planning process the company will then be making Drilling Permit applications for its first development well.
The company will be the Operator of these lease holdings.
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GRID PETROLEUM CORP. Files SEC form 8-K, Entry into a Material Definitive Agreement, Change in Directors or Principal EDGAR Online 7 days ago
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Grid Petroleum Corp. is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
oil article Why crude oil has stabilized and why we may have seen the bottom
image
With all the talk of the largest crude glut in over eight decades and with the corresponding impact of that glut on crude prices, it is entirely conceivablethat black gold has further downside. There are however some aspects of this narrative that run counter to the doomsday scenario that even some of the brightest on the Street are calling for.
The basic principles at work that have historically determined crude prices are; supply, demand, refining capacity and geopolitically fueled constraints to delivery. Though crude prices have contracted over 55% in the past 12 months, in the most recent 10 weeks crude prices have seen a degree of stabilization take hold. Why?
Supply, though still at near record levels, will see the impact of sharply reduced rig counts here in the United States over the next two quarters. That slowdown in production will bring with it less supply and less pressure on the downward price action in crude. Also, as we have seen in recent weeks, turmoil in Yemen has driven speculators to drive up prices as a result of the potential impact of the Yemen unrest on shipping through the Straits of Hormuz. That theme is erratic and entirely undependable but remains a constant variable that is priced into the price of crude.
Global demand, in spite of tepid economic performance in many areas has begun to rebound, partially as a result of the effect of significantly cheaper gasoline. In an article published in Bloomberg News in the overnight, Saudi officials have raised the prices of Arab Light crude for May delivery 30 cents/bbl to all Asian countries. Though only incremental the move suggests that demand in China, and other expanding economies in Asia, remains unfettered by the “glut” narrative.
The Saudi pricing model is complex, comprehensive and takes many regional variables into account. For example the pricing for the same Arab Light crude was reduced by 10 cents to North America and by 20 cents to the European clients. Though there are clear signs of oversupply around the world, the degree to which that oversupply effects pricing is determined by not only supply but demand.
What could well be the largest determinate factor for the price of gasoline and crude here in the United States in the near term, assuming production slowly recedes and demand slowing increases, is refining capacity. The more crude refiners can process, the less crude there is to put into storage. Refiners are on pace to refine more gasoline this year than at nearly any time in history – effectively eliminating some of the fear associated with dwindling storage capacity. In recent weeks, the fear of dwindling storage capacity has dampened pricing. Refiners will ultimately eat into crude stocks though production currently remains elevated.
With the emergence of Iranian crude back on the global crude market, what will the impact on prices be? Clearly, additional supply will act to put a lid on any possible appreciation in prices but will it necessarily force crude prices sustainably lower? Much depends on global growth. Europe appears to have stabilized its potential economic contraction. The US economy continues to expand, though recent data has been uneven. The Asian engine of growth still revolves around China and Japan. China has made it clear that the Central Bank will do whatever is necessary to keep economic activity from decelerating further.
The stage is set for a showdown between supply, demand , storage, refining capacity and geopolitical threats. The longer crude (WTI) maintains its pricing buoyancy by staying above $40.00/bbl in the near term, the better the odds are that it can weather this storm in the longer term.
grpr 2013 chart
oil prices are up 5.18 % at 51.69
i want we will get only icing
this month i gonna get rich
will happen
In mid-October, the 50-day moving average crossed below the 200-day moving average, a bearish signal that correctly predicted a further precipitous decline in the energy sector. However, notice how the lines have flattened out and now appear to be reversing course. While it hasn't yet broken out with a clearly bullish signal, it's a good sign that energy might have finally bottomed.
A famed banker Nathan Rothschild said,"buy when there’s blood running in the streets."
But before I'm willing to say that we've finally turned the corner on oil, I want to check out the technical charts as well as the fundamentals.
Oil's biggest driver isn't going to be the global economy
Right now, we're in a supply glut, but the long term overall global demand for oil isn't going anywhere. As drillers continue to cut back and stack rigs, that supply will begin to lessen and bring prices back into balance. Since October of 2014 when the total rig count peaked, the number of active rigs has dropped 49%.
Current oil supply is expected to peak around 480 million barrels this summer but then begin trending lower from there. By January of 2016, current supply levels will equal the 5-year supply average but will continue to fall as rigs start to come back online but won't be producing at full strength yet. According to the EIA, by this time next year, the supply of oil will be 50 million barrels fewer than the 5-year average.
Analysts at Deloitte expect an average price for oil of $62 per barrel for 2015 and increase to the $75 to $80 range after that. With oil currently trading below $50, that means prices are artificially low right now.
The biggest negative impact on oil isn't oversupply issues though – it's the strength of the U.S. dollar. Thanks to the ECB's and BOJ's devaluation policies, the dollar has gained in value as a safe haven asset for investors. When the dollar corrects lower, oil should be the primary beneficiary.
An undervalued oil stock that could be a potential gold mine for investors
news Grid Petroleum Corp Enters Into Strategic Funding Agreement
June 29, 2014 No Comments by GRID
DENVER, June 30, 2014– Grid Petroleum Corp. (OTCPK: GRPR): The Board of Directors are pleased to announce that Grid Petroleum has entered into a strategic funding agreement with Santa Rosa Resources Inc, a privately held Delaware corporation, for the development of Grid Petroleum’s leases in the Kreyenhagen Trend Properties located in the San Joaquin Valley of Central California.
Santa Rosa Resources is currently engaged in a Reg. D, rule 506(c) joint venture offering to fund the drilling of ten wells on the Kreyenhagen Trend leases owned by Grid Petroleum. Santa Rosa Resources’ CEO stated, “We are looking forward to drilling five wells into the shallow Temblor Formation as well as five into the Kreyenhagen, Avenal and Monterey Shale Formations. We are hoping to produce between 2,000 and 3,000 barrels a day from the wells once the drilling program is completed.”
Grid Petroleum President James Powell remarked, “We are looking forward to developing these leases and hopefully other leases in the future with Santa Rosa Resources. This mutually beneficial arrangement will assist Grid Petroleum in executing its business plan and achieving its long term goals.”
The company plans to begin the mapping planning and drill site selection process for the development of these ten wells.
Upon completion of the planning process the company will then be making Drilling Permit applications for its first development well.
The company will be the Operator of these lease holdings.
I hope it surprises everybody
I dont know but if it starts to move tag my name so i will get your message i been watching this everyday since aug 2013 but lately havent
drilling
0.0030
move on no news
somebody is interested
how much volume did we get yesterday
i would be up 389070
i agree
restructure Restructuring
From Wikipedia, the free encyclopedia
This article is about reorganizing business structures. For other uses, see Restructuring (disambiguation).
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring
it could blow up from here see those buys this morning
went up