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I'm happy now too. I've been down about the same too. It hurt to see that much red for so long, but I always felt they would come back..too much good due diligence to let it all go to waste. I think GRPR is back in the saddle again.
Or a buy-out
It looks like we have some experience at the helm of our Exploration/Completion & Drilling.
Mr. Steve Olsen- Completion/Drilling Well Site Supervisors
Owner at Olsen Consulting Company
Mr. Olsen has 34 years of experience in all phases of the Oil and Gas industry including but not limited to the field service, completion, production and work-over of all forms of Oil and Gas assets. Most recently Mr. Olsen has been the lead of the accomplished Olsen Consulting Company of Oklahoma.
Mr. Olsen has spent the last several years working with Chesapeake Energy Corporation developing the following shale formations: The Barnett Shale for three and a half years, the Wood-ford Shale for eight months, the Fayette and Marcellus Shale for approximately 6 months each. Mr. Olsen has also worked with other significant Oil and Gas production and exploration companies including Schlumberger Oil field Services for over nine years in the prolific Permian Basin of Texas.
Mr. Olsen brings with him the experience and knowledge to implement the development of Grid Petroleum Corp’s significant Monterrey Shale holdings in the prolific San Joaquin Basin of Central California.
I'm not going to settle for pennies. Once production starts, look out. Grid will have more money to develop additional acreage and off we'll go.
This is Great News!!! I looked at those Rago leases after one of your previous posts and was really impressed. The petroleum geologist said that they may have off-shore amounts of oil located on-shore. This whole San Joaquin basin was at one time an ancient inland sea. Very cool. Grid's getting their act together me thinks!!
Dee, sorry for the delay in answering you, but I've just spent the day driving from outside D.C. to Ft.Campbell, Ky. To read the solimar release, just go to the SXS board here on the hub. It may affect Grid positively in the future, but they'll be releasing more news shortly, imo.
I was just looking at Solimar's site for updates, and it looks like they have a doozy coming. They've just asked for a temporary halt to their trading till all investors hear of the news. I hope it plays well for GRPR.
GRPR looking real good...
Short Term Indicators Average: 100% Buy
http://www.barchart.com/opinions/stocks/GRPR
California: Next Oil Frontier?
http://video.cnbc.com/gallery/?video=3000149624&play=1
California voters say no to fracking moratorium.
http://hotair.com/archives/2013/06/11/boom-california-greens-try-fail-to-pass-a-fracking-moratorium/
Trillion-Dollar Liquid Gold Mine: Who Taps First?
Let's go Grid, get 'er done.
California's vast oilfields seen from the air
http://www.bbc.co.uk/news/science-environment-23284506
Go GRPR
As WTI Surges, Is This the “New Normal” for Oil Prices?
by Dr. Kent Moors | published July 23rd, 2013
After 735 consecutive daily trading sessions, one of the market’s longest streaks ended on Friday.
For the first time since August 16, 2010, West Texas Intermediate (the daily benchmark crude rate on the NYMEX) priced slightly higher than North Sea Brent (the equivalent benchmark in London).
The spread that existed for so long between the two had finally disappeared.
Admittedly, this “new normal” didn’t come as a shock. The spread between the two had been narrowing and the inevitable onset of parity – and even a slight premium for WTI – had been expected.
And yes, you can be sure there will be fluctuations moving forward, like yesterday when Brent traded at a slightly more expensive price.
But absent any major outside (i.e., exogenous as it is often termed in the business) event, the closing of this long-time spread has created one important outcome: a more favorable pricing environment for the U.S. benchmark.
In these conditions, the price of WTI should continue to climb.
Let me explain why the situation has suddenly changed…
The Battle Between WTI and Brent
Traditionally, a better pricing environment for WTI would have been expected (at least prior to August 2010). Because while both WTI and Brent are “sweeter” (that is, having less sulfur content) than almost 80% of all oil traded globally, WTI is actually a slightly better grade of crude.
That would mean, while most of the world’s oil would trade at a discount to both benchmarks, WTI should be priced higher than Brent.
However, of the two, Brent is clearly a more global standard than WTI. More trades internationally are discounted to Brent than any other benchmark.
And that combined with inventory problems in the U.S. are the primary reasons why the spread in favor of Brent lasted as long as it did. The well-publicized oil glut in Cushing, OK was as the “poster child” for these supply-side problems.
Cushing is the primary crude oil pipeline hub in the states. It is the location where the price of WTI is actually determined each day for NYMEX-traded futures contracts.
The ongoing problem was more oil was being produced than could be moved. As a result, the storage facilities at Cushing maxed out causing pipeline capacity to be used for stockpiling oil rather than transporting it.
When these sorts of conditions occur in an environment of stagnant demand, the result is downward pressure on oil prices.
Some of the Brent-WTI spread, therefore, was not a result of either benchmark’s usage so much as it was a reflection on a backup in the transiting of U.S.-based production.
The Sudden Surge in WTI
In the absence of this glut, WTI has been surging of late, outdistancing the increases in Brent.
By July 19, WTI was $108.47 a barrel, higher than for any daily trading session since March 1. Meanwhile, Brent hit $109.04 a few days earlier (July 16), higher than any day since March 28.
As the spread now straddles parity, market dynamics themselves will continue the movement of prices in favor of WTI.
Of course, rising tensions in the MENA states (Middle East and North Africa) could change that in short order. Hiccups in crude exports from the MENA region tend to put almost immediate pressures on Western Europe. That would accelerate Brent prices.
Nonetheless, the vanishing of the spread has some direct impacts on oil markets.
One will be to put a new upward direction on WTI. Assuming the glut at Cushing continues to diminish (and remember that very reduction in stockpiles is itself a reason for the narrowing of the spread), the price of WTI will be rising.
Demand, though, is certainly another aspect of the situation. But even here we have yet another wrinkle. It has to do with the price of gasoline.
As of the close on Friday (July 19), RBOB futures had risen 14.3% for the month. RBOB stands for “Reformulated Blendstock for Oxygenate Blending,” the NYMEX traded high-octane gasoline futures contract.
This double-digit move occurred despite an overall leveling off of domestic demand.
Now, I have explained the factors converging in a rise of gasoline prices at the refinery level in OEI before (“A Big Time Squeeze for Refineries is About to Begin“). The “four whammies” I discussed there continue to place renewed pressure on refinery margins.
In addition, the federal requirement that 10% of retail gasoline include ethanol (slated for an increase to 15% without Congressional intervention) has also prompted a gas price spike. This is due to higher prices for corn (a major result of the pronounced drought in the U.S. midlands), from which the American market obtains most of its ethanol production.
Those rising prices, however, are also a reflection of the genuinely global market for oil products. More and more U.S. production is now being exported to developing markets where both demand and prevailing retail prices are much higher.
The current rise in WTI, therefore, is in large measure simply a reflection of what the pricing levels ought to be in a market not beset with a glut at Cushing. Higher refinery prices for oil products sent abroad are still below pricing levels elsewhere.
In other words, rising domestic prices in the U.S. are offset by rising exports. This is the starkest reality of how the retail end is impacted by parity between WTI and Brent.
Investing in the “New Normal” for Oil Prices
So how does an investor play this newfound parity?…
The added element is the fact that a narrow differential between the two primary oil benchmarks may now be the “new normal” in crude pricing.
Initially, the onset of ongoing parity will provide profit opportunities in two distinct categories of companies that I have mentioned before.
First, while U.S. oil production will benefit from any nod to WTI, some companies will fare better than others. They include well-managed, mid-sized operators working in selected basins. Companies like this will simply provide better profits.
For example, there are producing fields in East Texas, Oklahoma, and Alaska where the crude lifted is actually priced higher than WTI.
Many of them are operated by small companies that have lifting rates below the threshold larger companies require. Larger producers often require higher daily volume figures to justify higher levels of overhead.
On the other hand well-run, focused, smaller companies do not. It’s a case where bigger is not always better in the oil business.
The second opportunity is in U.S.-based midstream companies that provide gathering, initial treatment, terminal, storage, and transit services to upstream producers.
As the spread disappears and the premium falls upon WTI, you can expect well-positioned midstreams to realize added profits from all of these pass-through elements.
These services are the essential lynchpins in the upstream (wellhead) to downstream (refining and distribution) movement of oil.
So while the streak may have ended, the opportunities in the oil markets have only just begun. The bull market in energy is still just warming up.
I have my own ideas why, but read this post from another operator who has a very large acreage position in the Kreyenhagen/Monterey shale near Grid & Solimar.
Excerpt From The Calandra Report...Zodiac Promoting Their Story
ZODIAC EXPLORATION: I talked this morning with Peter Haverson, the Briton who now runs Zodiac Exploration (ZEX in Canada). Peter lives up on a hill above Calgary and directs the oil explorer's California operations. The shares are selling for 5 cents with three times their average 10-day volume today Thursday. (Perhaps a follow-on from a Zodiac tour as potential investors and bankers perform their Sherlock & Moriarty diligence in and around Kettleman City and drill-points south.)
Mr. Haverson and another Zodiac member, financier Sam Charanek, who also lives on the Calgary hill, this week are giving me some of the background I wanted to understand just why California's Monterey shale and other oil/gas formations have lagged Texas, Canada, Montana,, Oklahoma and elsewhere in the USA TODAY headline news. The one word that helps is: Secrecy. On the part of large operators in the San Joaquin Basin -- or roughly the Los Angeles Basin to the Sacramento Delta. (Occidental, first and foremost.)
Mr. Haverson, a longtime mechanical engineer in the petroleum biz (Africa, Asia, Canada and California), calls this characteristic "the California mafia, and these professionals are ruthless in the measures they take to keep their tight holes really tight." See: tight hole in any oil dictionary for two-year and sometimes greater "holds" on assay data from large companies.
New Update from Solimar on the nearby Kreyenhagen Ranch drilling. Looks Good.
Solimar Energy Limited ("Solimar" or "the Company") (TSX VENTURE:SXS) (ASX:SGY)
is pleased to announce that the Kreyenhagen Ranch 2-33 well (K 2-33)
successfully reached TD at 1,472 feet measured depth on July 20 and electric
logs were run on July 21. The well was directionally drilled at a 48 degree
angle and encountered over 600' of the Temblor formation heavy oil sands. Oil
was present throughout the logged interval.
Logs are currently being analyzed by Schlumberger to determine rock and fluid
properties including the percentage of oil and water in the rock. The results of
the analysis are expected within a week. K 2-33 will be completed and placed on
production, using a completion rig in due course, to obtain reservoir fluid
samples and to evaluate the production performance of a deviated well on primary
production. Solimar plans to include the well in an upcoming thermal (steam)
pilot test scheduled for early 2014.
GRPR's information email address. I'm going to shoot them another request for an update.
info@gridpetroleum.com
NW Premont GEOLOGY AND TECHNICAL DUE DILIGENCE REPORT
http://www.jumres.com/diligence.php
Info on the NW Premont hydrocarbon reserves.
http://www.jumres.com/reserves.php
Thanks to the Golden State's dire fiscal situation, don't be surprised if the governor were to proclaim: 'There will be oil.'
http://online.wsj.com/article/SB10001424127887323353204578128733463180210.html
Some Californians try, but fail to pass a fracking moratorium.
http://hotair.com/archives/2013/06/11/boom-california-greens-try-fail-to-pass-a-fracking-moratorium/
This is good for Grid and Solimar.
I just wrote the company asking for an update on operations. Hopefully news will come soon.
Oh brother.....LOL
It's gonna be an EPIC day ahead in GRPR land.
Awesome post Papa Bear! This'll be a great help, everything you need on one page.
Here is some DD on Grid's 4000 acres of the California Kreyenhagen oil shale.
http://www.solimarenergy.com.au/documents/Corporate_Presentation_March_2013.pdf
Interesting reading taken from Grid's facebook page: Water-Free Fracking Catching On in Texas
http://www.governing.com/news/state/tt-waterless-fracking-catching-on-in-texas.html#.UYLG8OmCKA0.email
I could live with that.
nice volume.
okay, thanks.
Did you find out anything about the S-3 form?
News out!
So it seems to be, particularly with oilers. When I talked with Mr.Hurrt from AtlantisOil&Gas a couple of months ago, what he told me about the field development was very positive IMO.
It's 'bout time, we waited a long time for it.
Affirmative.
Some Californians try, but fail to pass a fracking moratorium.
http://hotair.com/archives/2013/06/11/boom-california-greens-try-fail-to-pass-a-fracking-moratorium/
Some Californians try, but fail to pass a fracking moratorium.
http://hotair.com/archives/2013/06/11/boom-california-greens-try-fail-to-pass-a-fracking-moratorium/
I just averaged down today with another mily in case the upcoming annual is real positive. I started buying over a year ago so my average was higher. From my own DD I can definitely see this going higher. Imo
I got tired of that too. Before I bought again, I called Atlantis Oil&Gas and talked with Mr. Hurtt to get my questions answered about the NW Premont and the drilling program.
When they do convert, isn't it better for them to sell into a strong run to maximize their earnings?
I'm thinking along those lines too. I wonder if they'll explain the need to go silent all this time?