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Stockprowler picks CMMI for November 2007
Positive Third Party Opinion on CMMI!
Several weeks ago Stockprowler added DPDW to the top of the Watch Box list. At that time DPDW was trading in the 80 cent range. It has since topped the $2.00 mark. Deep Down, Inc. (OTC BB:DPDW) is an oil services company with an impressive client list. Its innovative and proprietary technology coupled with an aggressive growth strategy make this a stock to buy and hold long term in our opinion.
Stockprowler's pick for November is another oil sector stock, CMMI, trading at around 18 cents. This past March, CMMI effectively cleared the way for the company to commence full-scale operations and begin execution of its new business operating plan and acquisition strategy. A bulk fuel terminal adjacent to Houston's George Bush Intercontinental Airport was leased by CMMI's wholly owned subsidiary, Intercontinental Fuels, LLC and immediately began generating revenues through operations of its three-bay fuel blending and tanker-truck loading terminal. The terminal has 160,000 barrels of fuel storage capacity, on-property access to most major fuel transmission pipelines, easy interstate access, and close proximity to Houston's large oil and gas refineries. With main transmission lines direct from area refineries providing on-site access to kerosene, jet fuel, gasoline, and diesel fuel, the company has an enormous potential for high throughput and growth.
In addition, the company has begun distributing pure biodiesel (B-100) and B-20, a 20% blend of biodiesel with petroleum based diesel fuel, and intends to benefit from growing consumer demand and the enormous government mandated tax benefits encouraging its widespread use.
Biodiesel is a domestic, renewable fuel for diesel engines derived from natural oils like soybean oil, meeting ASTM D 6751 specifications. Biodiesel can be used in any concentration with petroleum based diesel fuel in existing diesel engines with little or no modification, and is produced by a chemical process that removes glycerin from the oil.
Total revenue reported for the quarter ending June 30, 2007was $538,676. Timothy G. Byrd, Sr., CMMI's chief executive officer stated, "In examination of our results, excluding the one-time accounting charge of $717,412, I am pleased to report in our first quarter of operations the terminal operations have been cash-flow positive, with month-over-month growth averaging 30% per month. I anticipate growth continuing in subsequent periods."
"Since the addition of several large customers this year, including ADA Resources and O'Rourke Petroleum, our customer base continues to grow. Just as significant, after bringing on-line our B-100 blending apparatus, the company has increased its profit leveraging the B-20 biodiesel supplier market. I expect this performance to keep pace with the growing nationwide demand for diesel and "green" fuels.
The company's vision going forward includes expansion through maximizing profits at all the various distribution points, from the refinery to the retail outlet, within the growing 'downstream' consumer and commercial fuel distribution chain. In addition, the company intends to serve the vast unbranded retail fuel outlet market offering CMMI's branded fuel business concept, including availability of alternative, or green-fuels and renewable fuel blends." Byrd concluded.
On Monday, October 29 CMMI announced execution of a purchase agreement to acquire Troutman Oil Company, Inc., and US Fuel International, Inc., both privately held companies, with headquarters in Arkansas. Timothy G. Byrd, Sr. stated, "The addition of Troutman's distribution infrastructure, retail network, and the US Fuel® brand to our current terminal operation moves us closer to establishing CMMI as a fully integrated fuel supplier, distributor, and retailer, and positions us to capture profits throughout the downstream chain. We are presently continuing to develop and expand this business model through both organic growth and by acquisitions of greater terminal capacity and increased geographical reach of branded retail fuel outlets within the consumer and commercial fuel distribution chains." Terms of the agreement have CMMI purchasing the stock of Troutman Oil Company Inc., US Fuel International Inc., and certain assets held individually by its shareholders for $5 million in cash, $900,000 in debt, and 666,680 shares of CMMI convertible preferred stock valued at $1,000,000. The final purchase price is subject to adjustment based upon the audit results of the companies' assets and liabilities. "Once completed, this acquisition is expected add over $23,500,000 to the company's revenue," Byrd concluded.
Troutman Oil distributes fuel to retail outlets throughout Arkansas and owns and operates 12 branded US Fuel stations in the mid-South. US Fuel is a fuel marketing company that sells fuel under the US Fuel® trademark. US Fuel currently has a private label US Fuel brand credit card program with over 3000 active cards establishing brand loyalty with its customer base.
Closing of the purchase is to occur on December 10, 2007, but can be extended up to 90 days.
Well, all right, that's it for now… place your bets, sit back and relax. Remember, this is speculation not investing and quite often we get rewarded BIG for taking a chance…
Stockprowler.com does not receive compensation from companies we profile or from third parties... we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are small relative to the public float so that the effect on the stock price when we buy or sell is minimal. Please read our full disclaimer.
Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to because trading on insider information is illegal! All information contained in our reports is available in the public record... and any written or verbal communication with company CEOs/IR people strictly adheres to this rule.
Just the dip I was seeking!
Looking to add to my holdings!
Cheers.
Investor 100
Oil continues march toward $100
Record high above $98 as expectations of tight inventories and pipeline attack in Yemen drive prices higher.
November 7 2007: 6:12 AM EST
SINGAPORE (AP) -- Oil prices jumped to a new trading record above $98 a barrel Wednesday amid expectations of declining U.S. supplies and following news of an attack on a Yemeni oil pipeline.
"The oil market sentiment remains bullish ... there is an overall upward trend toward the $100 level," said Victor Shum, energy analyst with Purvin & Gertz in Singapore. "Meanwhile, we can expect extreme volatility where on the one hand some traders will take profit while others will buy back positions."
Light, sweet crude for December delivery added $1.31 to $98.01 a barrel by late afternoon in Singapore, after rising as high as $98.62 a barrel - an all-time futures trading record - in Asian electronic trading on the New York Mercantile Exchange.
The contract hit a high of $97.10 Tuesday before settling at $96.70 a barrel, a record settlement 66 percent higher than the close on the first trading day of the year. Wednesday's trading record is 96.7 percent higher than this year's trading low of $49.90, set Jan. 18.
Traders remain worried about whether supplies will be adequate to meet demand for heating fuel in the approaching Northern Hemisphere winter. News of an attack Monday on an oil pipeline in Yemen added to those concerns.
Figures to be released later Wednesday by the Energy Department's Energy Information Administration are expected to show crude supplies dropped last week. Analysts surveyed by Dow Jones Newswires predict, on average, that crude oil inventories fell by 1.6 million barrels.
"The price rise is really driven by expectations of drawdowns in crude oil and distillate stocks inventories in the U.S. inventory report," said Shum. "Some cold weather reports out of the U.S. and Europe serve as a reminder that winter is coming and that there are still supply concerns."
Oil inventories likely fell due to a suspension of output at Mexico's state oil company Petroleos Mexicanos, a major crude exporter to the United States, which temporarily shut its ports last week due to severe weather.
On Tuesday, the EIA predicted oil consumption will rise in the fourth quarter and next year despite higher prices, and that inventories will fall.
"Strong demand, limited surplus capacity, falling inventories and geopolitical concerns continue to weigh on the market," the EIA said in its monthly Short-Term Energy Outlook.
The weak U.S. dollar, which fell to a new low against the euro Tuesday, is also lifting oil prices. Oil futures offer a hedge against a weak dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling.
Analysts also expect the EIA to report Wednesday that gasoline inventories rose by 200,000 barrels during the week ended Nov. 2, while supplies of distillates, which include heating oil and diesel fuel, fell by 500,000 barrels.
The analysts expect that refinery use grew by 0.8 percentage point to 87 percent of capacity.
In London, Brent crude rose $1.36 to $94.62 a barrel on the ICE Futures exchange. A number of North Sea oil platforms were being evacuated Tuesday in advance of expected severe weather.
Heating oil futures added 2.62 cents to $2.6340 a gallon while gasoline prices rose 2.3 cents to $2.4580 a gallon.
Good morning to all!
Cheers.
Investor 100
Good Morning to all @ CMMI!
Todays Press Release another solid indicator of investing to a bright future!
1) Solid Management Focus!
2) Sector is Hot!
3) Recent Acquisition Perfect!
4) Steady Growth!
5) Great DD from Brikk & Company!
CMMI Upgrading Houston Fuel Terminal
HOUSTON, Nov. 6 /PRNewswire-FirstCall/ -- Consolidated Medical Management, Inc. (OTC Bulletin Board: CMMI) today announced its wholly owned subsidiary, Intercontinental Fuels LLC (IFL), is currently adding infrastructure allowing delivery of ultra-low sulfur diesel (ULSD) fuel at its fuel terminal located next to Houston's Intercontinental Airport.
'Intercontinental Fuels is committed to providing the most up-to-date infrastructure to our customers,' commented Timothy G. Byrd, Sr., Consolidated Medical Management's chief executive officer. 'The ULSD terminal upgrade is expected to be online by month's end, securing the long-term viability of the facility while building shareholder value.
'With long-term terminalling agreements to store and terminal fuel and a variety of customers such as ADA Resources, O'Rourke Petroleum, and the Metropolitan Transit Authority of Harris County (Houston area), Texas (METRO), among others, IFL remains committed to meeting the area's demand for cleaner burning ULSD fuel, both now and into the future,' Byrd concluded.
ULSD was proposed by the EPA last year as the new standard for sulfur content in on-road diesel fuel sold in the United States. This new regulation applies to all diesel fuel, diesel fuel additives, and distillate fuels. The EPA already has mandated the use of ULSD fuel in model year 2007 and later diesel-powered highway vehicles, and by 2014, all highway, off-road, locomotive, and marine diesel engines produced and imported will use ULSD.
In addition, CMMI last week announced execution of a purchase agreement to acquire Troutman Oil Company and US Fuel International, Inc., both privately held companies. Closing of the purchase is to occur on December 10, 2007; however, closing can be extended up to 90 days.
Troutman Oil Company distributes fuel to retail outlets throughout Arkansas and owns and operates 12 branded US Fuel(R) stations in the mid- South. US Fuel International, Inc. is a fuel marketing company that sells fuel under the US Fuel(R) trademark. US Fuel International currently has a private label US Fuel(R) brand credit card program with over 3000 active accounts.
About Troutman Oil Company and US Fuel International, Inc.
Troutman Oil Company is a fuel distribution company servicing retail outlets throughout Arkansas. US Fuel International, Inc. offers fleet fueling, franchise, and branding programs to aggressive petroleum entrepreneurs. In addition, the Company offers a variety of innovative programs in protected territories including fleet fueling, fuel purchase cash cards, on-site fueling, unattended express marts, national referrals, regional and national co-op advertising, and co-branding with comprehensive training and marketing support. US Fuel International offers programs and support to generate greater visibility and increased business in today's competitive marketplace.
About Consolidated Medical Management, Inc.
Consolidated Medical Management, Inc. (CMMI) is a wholesale fuel distributor and fuel terminal operator based in Houston, Texas. CMMI not only offers storage, delivery, and blending of petroleum products such as gasoline and diesel fuel, but also offers biodiesel to the growing 'green' fuels market. Biodiesel is a clean burning, nontoxic, sulfur-free, and biodegradable alternative fuel for compression-ignition (diesel) engines made from animal fat or vegetable oil.
One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered 'forward-looking statements,' generally preceded by words such as 'plans,' 'expects,' 'believes,' 'anticipates,' or 'intends.' We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. Consolidated Medical Management, Inc., urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.
SOURCE Consolidated Medical Management, Inc.
God morning Brikk & CMMI shareholders!
Looks like another great day and week ahead for CMMI!
Cheers
Investor 100
Joe these video's are better than the best movies playing in town this weekend..
Got my video's, popcorn and drinks!
Cheers!
Investor 100
Welcome to CMMI Eric Van!
Great Timing!
1) Bottom Floor Opportunity!
2) Recent New Acquisition US Fuel International!
3) Hot Sector- BioDiesel / Storage + Much More!
4) PPS + Volume is steady and rising!
5) Great DD by Brikk & Company!
Cheers!
Investor 100
Oil at Record High $95!
NEW YORK - Oil futures surged Wednesday, closing near to $95 a barrel having risen to a new record after the government reported an unexpected drop in crude oil inventories for the second week in a row.
Trick or Treat!
Investor 100
Good morning to all @ CMMI!
Investor 100
Good solid day performance @ CMMI!
Cheers.
Investor 100
Ditto: Thanks for the pictures Sulpher!
It may be quiet time but that machine shop always has something going on...contracts!
Investor 100
Great Day @ CMMI!
1) Steady Volume!
2) Steady PPS
3) Great first acquisition US Fuel International /Troutman Oil!
4) Sector of business is Hot---crude oil at record highs!
5) Great DD by Brikk @ Company
Cheers!
Investor 100
Great Day @ CMMI.....
Record crude oil prices...$93
Investor 100
Adding more before the PR hits!
Investor 100
Good Morning @ CMMI
Some good DD posted this weekend-thank you all!
Investor 100
Oil prices close at record high
Crude soars over $92 before backing off
NEW YORK - Crude futures rose to record levels on Friday, supported by worries over political tensions in the Middle East where the U.S. imposed sanctions on Iran and Turkish troops remained massed at the Iraq board to counter Kurdish rebels.
In addition, the market was unsettled by a dawn attack on an oil vessel off the coast of Nigeria by anti-government militants and suggestions that OPEC oil shipments are not rising as quickly as expected.
“On the back of mounting evidence that the oil balances are tight, and tightening, markets are becoming increasingly uneasy over the prospects of entering the winter high-demand season with inventories at too-low levels,” Kevin Norrish, an analyst with Barclays Capital PLC, said in a research note.
While rising more than $1, crude futures retreated from an earlier all time high above $92 as investors sold to lock in profits from the latest multi-day record-setting rally.
Oil futures have risen nearly $7 a barrel, or 8 percent, since the government on Wednesday reported a sharp drop in crude inventories in the United States. The inventory numbers reinforced a view that oil supplies are falling at a time of year when they should be rising to meet expected strong fourth-quarter demand.
Light, sweet crude for December delivery rose $1.40 to settle Friday at a record $91.86 a barrel on the New York Mercantile Exchange after rising overnight as high as $92.22, a new trading peak. Crude prices jumped $3.36 a barrel on Thursday.
With the recent gains, the price of oil is closing in on the inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today.
Some analysts argue that the underlying fundamentals don’t support such high prices, and say speculative buying is the real reason prices are rising. Tim Evans, an analyst at Citigroup Inc. in New York, noted that despite last week’s decline in domestic inventories, supplies remain high by historic standards. Also, the Organization of Petroleum Exporting Countries is set to boost production by 500,000 barrels a day beginning Nov. 1.
Form 8-K for CONSOLIDATED MEDICAL MANAGEMENT INC
Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On October 19, 2007, the Company agreed to purchase the stock of US Fuel International Inc. and Troutman Oil Company Inc. for $5 million in cash, $900,000 in debt, and 666,680 shares of CMMI preferred stock. US Fuel and Troutman Oil are closely-held corporations located in Austin, Arkansas. The Purchase Agreement also provides for CMMI to purchase certain assets held individually by the shareholders of US Fuel and Troutman Oil. The purchase of these assets is included in the purchase price. The purchase price is subject to adjustment based upon the results of an audit of the companies' assets and liabilities.
Troutman Oil distributes fuel to gas stations throughout Arkansas and owns and operates several US Fuel-branded stations.
US Fuel is a fuel marketing company that sells fuel under the "US Fuel" trademark. US Fuel currently has a private label credit card program that allows customers to charge their fuel purchases to a US Fuel credit card.
The Purchase Agreement provides that CMMI will enter into employment agreements with the companies' current management.
Closing of the purchase is to occur on December 10, 2007. The closing date can be extended 90 days with an additional $50,000 payment. If closing does not occur, then the shareholders of US Fuel and Troutman Oil can keep the $10,000 deposit paid concurrent with the signing of the Purchase Agreement.
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CMMI Acquires both US Fuel International & Troutman Oil Corporation.
US FUEL International Inc. is a petroleum supplier offering Supply and Branding programs to Petroleum Distributors in 8 states. US FUEL offers Fleet Fueling programs, Cash Card Programs, Franchise Programs and comprehensive training and marketing support. Troutman Oil Company Inc. is a petroleum distributor and convenience store company operating 7 company stores and 3 unattended locations, plus many dealer locations. TOC supplies fuel to many businesses, industries, schools, etc. Included is the Federal Trademark for US FUEL and the State Trademark for Pony Express. Contact for more information on this Petroleum Supplier business for sale.
Financials
Asking Price Range: $5.0M - $10.0M
Gross Revenues: $25,000,000
Cash Flow: $1,000,000
Cash Flow Type: EBITDA
Inventory: $750,000
Seller Financing: Not Disclosed
About The Business
Year Established: 1982
Number of Employees: 35 - 49
Relocatable: Yes
Franchise: No
Current Real Estate: Owned
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Troutman Oil Corporation
8135 Highway 5
Cabot, AR 72023
Tel: (501) 843-6563
Not an understatement to say that this is an impressive acquisition!
With fuel surpassing $92 and inching closer to $100 p/barrel this sector of the business is hot and will continue for months and years ahead!
Cheers!
Investor 100
Friday are great news days!
Deal closes in early December 2007!
US Fuel International Inc. and Troutman Oil Company
This management team aspires to the other team we know so well!
Cheers!
Investor 100
Another strong performance today!
1) Steady PPS!
2) Steady Volume!
3) Alternative fuel BioDiesel is hot!
4) Solid DD from Brikk & Company
Cheers!
Investor 100
DPDW acting like a big board stock!
1) Consistent daily volume.
2) Consistent steady rise in PPS.
3) Consistent work going on in machine shop ( thanks Sulpher )
4) Oil & Equipment sector is HOT!
5) Professional and Experienced management team at DPDW!
6) Superb DD on this board from Brikk & Company!
Cheers!
investor 100
With this tight grip any positive news will spring this to new highs (IMO)
Cheers.
Investor 100
Nice commentary and great close today!
The Bottom Line ( Reuters News
Key Issues
High Prices
Demand for petroleum products, including natural gas for power generation and industrial feedstocks, and refined oil products such as gasoline and diesel, is increasing. As the increase in demand has outstripped the increase in supply, prices have increased, generating revenue and margin growth for the major oil companies.
Sustainable Energy
Dwindling oil and gas reserves combined with growing environmental concerns are causing increased consumer and governmental demand for sustainable energies including wind, solar and nuclear power. Therefore, many oil and gas operators are diversifying their operations into sustainable technologies in order to protect long-term profitability.
Hurricane Impact
The hurricane damage to rigs and equipment in the Gulf Coast in 2005 worsened domestic under-supply issues, necessitated extensive capital outlay for repairs, severely impacting on earnings. This level of damage indicated that potential future changes in weather patterns are a serious issue for the leading players in this industry.
Significant Trends
Consolidation
Big Oil considers consolidation a key factor in maintaining competitiveness in an increasingly crowded market with decreasing reserves. As one of the worlds only major oil producing regions with a stable political environment, North America is viewed as an attractive place for investment.
Domestic Exploration and Production
The oil industry is facing considerable pressure from problems of instability within middle-eastern oil producing countries. In response, the US government and leading oil companies are looking to reduce their dependence upon such regions for oil supplies, by extending domestic exploration and drilling. For example, Congress has recently lifted a ban on oil drilling in Alaskas Bristol Bay region, and part of the Gulf of Mexico, with industry leaders currently pressing Congress to open up more US coastal areas to operations.
Growth in LNG
As gas is more easily accessible than oil and its uses are more varied, companies are focusing on this sector to maximize revenues. Liquefied natural gas (LNG), has many benefits include easy transportability and less harmful emissions on burning than oil, which has driven companies to invest heavily in LNG production.
Oil and gas operations consist of the exploration, development, production, refining, storage, transportation and marketing of oil and gas.
Not so quick on the R/S!
Each R/S depends upon the company and for most penny stocks an R/S does not work whereby delutions occurs.
CPNE has a profitable business, a revised business model with Iventa acquisition and so an R/S would be positive.
1) Gets us to AMEX or NASD giving us more opportunity for institutional investors to recommend/buy shares.
2) Creates credible opportunities with other companies.
3) Reduces those that short the stock.
What I want to learn more from management at CPNE is what is the game plan to manage this business once we reach AMEX /NASD?
Cast your vote is critical to the future @ CPNE!
Investor 100
Brikk: Terrific Information!
Interesting companies listed on this chart ( FTK ) has had one heck of a 2007 and climbing!
There may be some that think "double digits" is crazy but only study those charts and the possibilities are possible given what we know at DPDW!
Look forward to another good week!
Investor 100
Had to slap the ask for 25k.
Cheers.
Investor 100
Brikk: Another solid day building at CMMI!
Cheers,
Investor 100
Global Deepwater Expenditure to exceed $108 billion through 2012
Adrian John, Georgie MacFarlan - Douglas-Westwood Ltd.( Offshore)
The World Deepwater Market Forecast, soon to be published by energy analysts Douglas-Westwood, forecasts continued growth in the deepwater sector with annual expenditures reaching over $24.6 billion by 2012. The key findings of the study in conjunction with related information from The World Offshore Drilling Spend Forecast and The World Oil and Gas Forecast indicate that an enormous amount of activity lies ahead.
Looking forward
Deepwater oil and gas production is increasing rapidly, and output is expected to increase by almost 80% over the period to 2011. From 4.5 MMb/d in 2007, deepwater oil production will grow to nearly 8 MMb/d in 2011, while deepwater gas production will increase from 1.6 to over 3 MMboe/d over the same period.
To put this in context, deepwater oil production now accounts for almost 15% of total offshore oil and gas production, but over the next few years, its total share relative to shallow-water output will grow, accounting for around 20% of offshore production by 2011.
Deepwater regions
Africa is expected to be the leading deepwater development area over the 2008-2012 period, accounting for nearly 40% of the global deepwater spend. Since the first brace of deepwater “elephants” - Shell’s Bonga in OPL 212 off Nigeria and Total’s Girassol in block 17 off Angola, discovered in the spring of 1996 - Africa has emerged as perhaps the most significant deepwater region in the world, with some stunning successes.
The first floating production system to be installed in Africa’s deepwater was Total’s landmark Girassol FPSO on the Girassol field off Angola in 2001.
This was followed by ExxonMobil’s Xikomba in 2003 and then Kizomba A’s TLP and FPSO.
Deepwater oil and gas production 2002-2011. Source:
The World Offshore Oil & Gas Forecast 2007-2011, Douglas-Westwood (Energyfiles Ltd.).
There are a variety of deepwater development prospects on the radar for the period to 2012, including Shell’s Bonga South West and ExxonMobil’s Bosi; projects include Chevron’s Agbami and Total’s Akpo and Usan/Ukot - all of which lie offshore Nigeria.
Offshore Angola, BP is making good progress with its Greater Plutonio development in block 18. The company also has development plans for the series of discoveries in block 31. ExxonMobil is developing the Mondo, Saxi, and Batuque discoveries within the Kizomba C FPSO development. In addition, Norsk Hydro and Sonangol are developing the Gimboa field and Chevron the Negage field, both via FPSOs.
Deepwater capex by region 2008-2012. Source: The World Deepwater Market Forecast, Douglas-Westwood.
With so much activity occurring off Nigeria and Angola, it is easy to overlook Egypt’s emerging deepwater status. In the West Delta Deep Marine (WDDM) Concession, BG has enjoyed some spectacular exploration successes. These, along with the Saffron/Scarab development, have allowed BG to establish itself as one of the industry leaders in adopting subsea production technology.
The Saffron/Scarab development marked Egypt’s first subsea completion, not to mention one of the world’s longest subsea tiebacks.
Further west, the Amerada fields (formerly operated by Apache) have a 25-year lease and sales agreement that will allow the development of the Abu Sir, El Max, El King, and Al Bahig discoveries to go ahead.
The Latin America region is dominated by Brazil in terms of deepwater activity. National operator Petrobras has established itself as a pioneer in the use of innovative technology to achieve production from water depths in excess of 1,800 m (5,905 ft).
The operator is continuing with its development of the Roncador, Marlim Leste, Marlim Sul, Jubarte, and Albacora Leste fields, while pursuing newer finds such as Golfinho. Overall, the region is expected to account for nearly 20% of deepwater development capex over the 2008-2012 period.
With a few notable exceptions, deepwater fields in the US Gulf of Mexico tend to be smaller than those in other deepwater “hotspots” such as Brazil and West Africa, for example. The region’s extensive offshore infrastructure, in the form of production platforms and export pipeline networks, and the relative proximity of supply and service centers have a significant influence on E&P activity, turning otherwise marginal prospects into viable commercial propositions. These factors also mean that project lead times tend to be shorter than in other regions.
In addition, the use of subsea tiebacks to floating production systems has resulted in “hub and spoke” developments, allowing production from several small (otherwise uneconomic) fields to go ahead, produced via a single floating production system. An example is the Atwater Valley Producers’ Independence Hub, a semisubmersible unit that recently started operating from the Atlas field. Additional production is set to begin from a number of other fields in the DeSoto Canyon and Lloyd Ridge areas, including Spiderman, Jubilee, Merganser, Vortex, San Jacinto, and Atlas NW. Petrobras is also set to operate an FPSO to receive production from the Cascade and Chinook fields.
North America is expected to account for over 25% of deepwater development Capex over the 2008-2012 period.
Asian prospects are centered around Indonesia, Malaysia, and India and include Chevron’s Gendalo and Gehem/Ranggas developments offshore Indonesia and Murphy’s Kikeh and Shell’s Gumusut off Malaysia.
The “Golden Triangle” of deepwater (Africa, Gulf of Mexico, and Brazilian) will still account for 84% of global deepwater expenditure over the forecast period, but the rapid emergence of Asia as a significant deepwater region should not be overlooked.
Indonesia, Malaysia, and India all have development prospects on screen for the 2008-2012 period, and the region should account for 10% of deepwater capex during this time.
After the drilling and completion of subsea wells, an activity that is becoming increasingly expensive in areas such as the US GoM, it is pipelines and platforms that form most of the remaining spend for deepwater developments. Advances in technology, particularly in mooring systems and innovative hull designs, are allowing production from greater water depths to be viable both technically and economically.
Over the next five years, $28 billion is likely to be spent on deepwater floating production systems, $38 billion on drilling and completing subsea wells, and $32 billion on flowlines and control lines, while subsea hardware and surface completed wells could account for a further $10.5 billion.
The deepwater “shopping list” for the forecast period includes over 1,270 subsea trees, 300 templates and manifolds, 68 platforms, and nearly 13,000 km (8,078 mi) of pipelines. Annual expenditure in the deepwater business is expected to reach $24.6 billion by 2012, with the overall spend for the 2008-2012 period totaling $108.5 billion.
Drilling supported by deepwater activity
Without exception, deepwater development drilling spend is increasing rapidly in all regions where deepwater oil and/or gas fields have been discovered, especially offshore West Africa. Deepwater development drilling spending is also forecast to begin in other regions, including Asia and Mexico.
Results from the World Offshore Drilling Report estimate that over the last five years $164 billion was spent on shallow-water drilling, representing 80% of all drilling expenditure. Meanwhile, $41 billion was spent on deepwater drilling. Over the next five years, it is forecast that $221 billion will be spent on shallow-water drilling, representing 72% of all offshore drilling expenditure. It is estimated that $85 billion will be spent on deepwater drilling.
The increase in deepwater spending relative to spending in shallow water is substantial. While shallow waters are seeing increased expenditure because of rising prices and rising unit well costs, deepwater expenditures reflect a real increase in global activity of global importance to rig contractors and associated drilling services.
From a mere 2% of global expenditure in 1991, almost all in Brazil, the deepwater share had increased to 17% by 2002 and is forecast to reach nearly 30% by 2011.
Within the deepwater sector, 28% of expenditure is directed toward engineering services, down from 42% in shallow waters. Just under a quarter is once again earmarked for support, but rig spends have gone up to 47% due to the increased use of expensive equipment. Only 4% goes toward geoscience.
The large jumps in deepwater spending throughout the period in all categories are due to big increases in drilling levels in the deepwater sector as well as inflationary pressures.
Adrian John has conducted market analysis in the oil and gas sector as part of commissioned research, commercial due-diligence, and published market studies. He has worked on projects focusing on the downstream sector and is the lead author of the World LNG & GTL Forecast. John has a background in engineering and construction and holds an engineering degree from the University of Cambridge.
Georgie MacFarlan is publications manager for Douglas-Westwood and contributes to DWL publications. She has worked on a number of the firm’s studies for oil majors, government departments, and investment banks.
Dr. Michael R. Smith has spent over 20 years in the oil and gas industry. He has worked for several consultancies and oil companies as a geoscientist and as exploration manager with responsibilities for ventures in the many countries. Smith is chief executive of Energyfiles where he has developed a data and forecasting service available at www.energyfiles.com.
Thanks Mystic for the great shots!
This is great stuff here:
1) Company has 24 / 7 camera photos for us to view.
2) Shareholder ( Mystic ) gets tour by owner + photo's!
3) Excellent DD completed on the board by many!
4) Deep Down future looks great with PPS rising daily/weekly!
5) Life is good!
Cheers!
Investor 100
Oil eyes record high $89
LONDON (Reuters) - Oil resumed its upward march on Thursday, its sights set on a new record high above $89 that would deepen economic worries in the United States and unease among some OPEC producers.
Prices had dipped earlier in the session on a combination of profit-taking and after Nigeria's energy minister raised the possibility OPEC may review output as early as next month to try to cool a market it believes is behaving irrationally.
But losses were short-lived and by 10:44 a.m. EDT U.S. crude was up $1.38 at $88.78 a barrel. It briefly hit an all-time high of $89 on Wednesday in a rally that added almost $10 in eight days.
London Brent was up 88 cents at $84.01.
Nigeria's minister of state for petroleum told Reuters on Wednesday he did not rule out that OPEC ministers may turn informal talks at an OPEC heads of state summit in Riyadh in mid-November into a full-blown meeting to review output.
But on Thursday an Iranian official insisted there was no need for OPEC to boost production further, having agreed to add 500,000 barrels per day to the market from November 1.
"Geopolitics is the reason behind very high oil prices," said the official from OPEC's second biggest producer. "Bringing calm to the international situation would help the price."
Oil has surged 45 percent since the start of the year, moving towards its April 1980 inflation-adjusted high of $101.70, according to International Energy Agency data.
evolution and at the start of the Iran-Iraq year -- oil averaged $90.46.
This year's average is $67.27.
COMMODITIES RALLY
The rally has accelerated this month as central banks pumped money into financial markets to keep them operating smoothly through a global credit squeeze.
"A greater liquidity boom in Asia, created by lower interest rates, is helping fuel the demand for commodities," said Francisco Blanch, head of commodity research for Merrill Lynch.
"It's a record high, but which commodity isn't at a record high? I'm not sure it's that high a number relative to other commodities...It's probably a fundamental shift in the price of commodities in the world," said Peter Bosworth, chief executive of trading house Arcadia.
Investors and analysts also cite relatively low oil stocks in consumer nations, unprecedented weakness in the dollar and the prospect Turkey will send troops into northern Iraq to hunt down Kurdish rebels there.
Although little oil is at risk from any military action by Turkey in northern Iraq -- Iraq's exports via its pipeline to Turkey have been sporadic since 2003 -- traders fear a conflict could endanger other supplies from the Middle East.
Signs of slowing demand in top consumer the United States were a tempering factor on Thursday, however. U.S. data on Wednesday showed year-on-year growth of just 0.2 percent.
U.S. Energy Secretary Sam Bodman said high prices were of great concern to the United States, whose economy is facing headwinds from the meltdown in the subprime mortgage market.
"With prices pushing towards $90, and $100 being bandied about as another likely target, both OPEC and the United States are under increasing pressure to try to talk the market down," said Edward Meir, an analyst at MF Global.
(Additional reporting by Jonathan Leff and Barbara Lewis)
Good morning to all CMMI shareholders!
Last few days have been great!
Investor 100
Fourkids-
Todays press release is so timely given the facts on the most recent acquisition.
I am pleased to have added to my count as I see nothing but more positive results and an increase in the PPS!
Much more room for growth!
Investor 100
Trend Spotter: Green Light @ DPDW
DPDW - DEEP DOWN INC. (OTCBB)
Date Open High Low Last Change Volume % Change
10/17/07 2.1900 2.1900 1.9800 2.0600 -0.1100 674100 -5.07%
Composite Indicator
Trend Spotter TM Buy
Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Hold
Short Term Indicators Average: 80% - Buy
20-Day Average Volume - 470735
Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 286366
Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 218197
Overall Average: 96% - Buy
Wow..this is taking off...glad I got in!
Added on to my position and looking long and strong!
Cheers
Investor 100
Thanks Rigmedic..
Always great to know what kind of folks are running the shop!
Added more earlier today.
Invester 100
Fantastic Day @ CMMI!
Added more today...
Investor 100
Thanks Sulphur!
Bring on the orders!
It certainly looks as thou there is much activity going on with all this heavy equipment!
All to the benefit of its shareholders!
Adding more shares today!
Investor 100
Numbers Do Not Lie: Green Light -DPDW!
DPDW - DEEP DOWN INC. (OTCBB)
Date Open High Low Last Change Volume % Change
10/16/07 2.0400 2.2300 1.7800 2.1700 +0.1500 892200 +7.43%
Composite Indicator
Trend Spotter TM Buy
Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Buy
Short Term Indicators Average: 100% - Buy
20-Day Average Volume - 443740
Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 275890
Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 211592
Overall Average: 100% - Buy
Fantastic Day Today!
For those still here you gotta like the way this play is going!
Thanks to those for the DD and the photo's of a busy shop that has a lot of activity and people moving about!
Cheers!
investor 100
Welcome Risalamang!
Great DD on this board with ground floor opportunity.
Investor 100