“Formula for success: rise early, work hard, strike oil.” - J. Paul Getty
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Too bad LPR's chance was slim. I like the potential of a bottom forming soon. $2 seems to be the lowest it may be tempted to drop.
Lone Pine Resources Inc. has a Analysts' Rating of 2.20, a Price/Book Value Ratio of 0.46, and a Forward Price/Earnings Ratio of 3.79. The short interest was 1.28% as of 06/27/2012.
Lone Pine Resources Inc. engages in the exploration, development, and production of oil and gas properties in Canada.
As of December 31, 2011, the company owned interests in approximately 57,382 net acres in the Evi field located in the Peace River Arch area of northern Alberta; approximately 157,779 net acres in the Deep Basin, including the Narraway/Ojay fields and the Wild River field located in Alberta and British Columbia; approximately 240,320 net acres in the Utica Shale located in Quebec; and approximately 52,995 net acres in the Liard Basin located in the Northwest Territories.
Miller Energy Resources, Inc. has a Analysts' Rating of 2.00, a Price/Book Value Ratio of 0.63, and a Forward Price/Earnings Ratio of 7.79.
The short interest was 28.31% as of 06/27/2012. Miller Energy Resources, Inc. engages in the exploration, production, and drilling of oil and natural gas resources in the United States.
It primarily holds interests in approximately 699,402 gross acres of oil and gas leases and exploration licenses located in South central Alaska's Cook Inlet and Susitna Basins, and the Appalachian region of eastern Tennessee.
I think natural gas prices have been the main influence on the depressed share prices outside of any silution (S8 etc.). However the service / construction side of the business seems promising.
Revenue Results:
The Company recognized revenue for the first quarter ended March 31, 2012 of approximately $7.9 million compared to approximately $4.0 million during the corresponding period 2011. Contributing to the substantial increase of quarterly revenue was our energy construction and field maintenance services segment, comprised of Miller Fabrication, LLC and HPG Services which accounted for approximately $6.4 million.
Seems it has found a bottom around here. What do you guys make of the Lincoln funding and its impact on improving production revenue?
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8302470
Purchase Agreement with Lincoln Park
On May 18, 2012, we entered into a Purchase Agreement, together with a Registration Rights Agreement, with Lincoln Park Capital Fund, LLC. Pursuant to the terms of the Purchase Agreement, we have the right (at our discretion and subject to certain limitations) to sell to Lincoln Park up to a maximum $10.2 million of our common stock as described below. Pursuant to the terms of the Registration Rights Agreement, we have filed with the SEC the registration statement that includes this prospectus to register for resale under the Securities Act the shares that have been issued or may be issued and sold to Lincoln Park under the Purchase Agreement.
Upon signing the Purchase Agreement, we sold $50,000 of common stock to Lincoln Park as an initial purchase of 192,308 shares of common stock at a price of $0.26 per share. Upon filing of the registration statement that contains this prospectus, we will sell an additional $50,000 of shares of common to Lincoln Park. After the SEC has declared effective the registration statement that contains this prospectus, Lincoln Park will purchase an additional $100,000 of shares of common stock. The prices of these additional sales of shares will be equal to the lower of the initial purchase price of $0.26 per share, or a price based off the then prevailing market prices with no discount.
After the registration statement has become effective, we will have the right, but not the obligation, exercisable in our sole discretion, to sell up to an additional $10.0 million shares of common stock to Lincoln Park, subject to satisfaction of certain conditions as set forth in the Purchase Agreement. Generally, we can sell up to 250,000 shares of common stock to Lincoln Park, not more frequently than every three business days, the total value of which cannot exceed $1.0 million per purchase. There are no trading volume requirements or restrictions under the Purchase Agreement, and we will control the timing and amount of any sales of our common stock to Lincoln Park. It is anticipated that shares registered in this offering will be sold over a period of up to 36 months from the date of this prospectus. Each time we direct Lincoln Park to purchase, subject to the terms of the Purchase Agreement, Lincoln Park will be obligated to purchase such amounts directed by us. Lincoln Park does not have the right to require us to sell any shares of common stock to them under the Purchase Agreement. We have no obligation to sell any shares under the Purchase Agreement and the actual proceeds that we receive from sales to Lincoln Park could be substantially less than the maximum $10.2 million.
The purchase price of the shares sold to Lincoln Park under the Purchase Agreement will be based on the market price of our common stock immediately preceding the time of sale as computed under the Purchase Agreement without any fixed discount. Specifically, the price will equal the lesser of (a) the average of the three closing sale prices of the common stock during the 12 trading days prior to the purchase, or (b) the lowest sale price of the common stock on the date we direct Lincoln Park to purchase. We also have the right to accelerate the pricing period under certain circumstances. However, we cannot sell, and Lincoln Park will not be obligated to purchase, any shares if the calculated purchase price would be less than $0.10 per share.
We have agreed to issue up to a total of 1,795,775 shares of common stock as a commitment fee to Lincoln Park in consideration for its entering into the Purchase Agreement with us. Of this total, we issued 718,310 shares of common stock as an initial commitment fee upon entering into the Purchase Agreement. The remaining 1,077,465 commitment shares are issuable to Lincoln Park on a pro rata basis as it purchases shares of common stock under the Purchase Agreement. For example, in connection with the initial $50,000 shares of common stock that we sold to Lincoln Park, we issued 5,282 shares as the pro rata additional commitment fee. These pro rata additional commitment shares were calculated as the product of $50,000 (the amount we sold), divided by $10.2 million (the total maximum amount we can sell to Lincoln Park under the Purchase Agreement), multiplied by 1,077,465 (the total number of additional commitment shares). Similarly, for the $50,000 of shares that we will sell to Lincoln Park upon filing of the registration statement, we will issue an additional 5,282 shares as the pro rata commitment fee for such sale, and upon the registration statement being declared effective, we will issue an additional 10,563 commitment shares in connection with our sale to Lincoln Park of $100,000 of shares. In the event that the registration statement is not declared effective by October 15, 2012, we will be required to issue to Lincoln Park the entire remaining balance of the commitment shares.
Lincoln Park may not assign or transfer its rights and obligations under the Purchase Agreement. We may at any time in our sole discretion terminate the Purchase Agreement without fee, penalty or cost.
52 week high of $5.59 outside of the drop 12 months ago, makes this an interesting scenario. A move over $6 could send it much higher. Oil price improvements which I expect between here and 2013 should also do well. $7-8 possible?
New production means better cash flows which leads to more production. I like their New Mexico holdings. Btw nice hedge @ $95 Ray, kudos.
AUSTIN, Texas, June 25, 2012 /PRNewswire/ -- FieldPoint Petroleum Corporation (NYSE/AMEX: FPP) announced today that drilling is expected to begin on the East Lusk 15 Federal #2 well in Lea County, New Mexico in July. The Company has an operating agreement with Cimarex Energy Co, (NYSE: XEC) www.cimarex.com, to drill this well that targets the Bone Spring formation. The total cost for this well is expected to be approximately $7,000,000, with net cost to FieldPoint of approximately $3,100,000.
This horizontal well is planned to be drilled in a similar manner to the Company's well #1 on this property, which was to drill vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 to 90 days.
FieldPoint is very pleased with the results seen so far from the East Lusk Federal #1 well and, although there is no guarantee that the second well will produce similar results, the Company is very encouraged by the fact that Cimarex Energy has drilled numerous successful wells in the Bone Spring play, and in this area.
FieldPoint's President and CEO, Ray Reaves stated, "This horizontal well project was originally announced in 2010, and produced the first well in December 2011. If the results hold, we are extremely excited about the prospects of drilling a third well on this property. Our partner, Cimarex Energy is one of the best in the industry at completing wells in the Bone Spring formation."
Mr. Reaves went on to add, "I would also like to remind our shareholders at this time that our costless collar hedging program announced earlier this year has locked in 200 barrels of oil per day at a price of $95 through December 31 of this year. This program is now providing us with the protection against volatile market pricing that we sought when it was initiated, and consequently we are able to continue our program of increasing both production and reserves to build greater shareholder value."
FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two planned wells.
Looks like the market has found its bottom last month. Anybody holding at these levels? I think Alaska potential could be a mover to the company's pps as it unfolds. Thoughts?
The Company is encouraged by recent developments in regard to its Alaska acreage. With comments by Great Bear's President, Ed Duncan, stating that all the prospective Shublik acreage has now been leased by Great Bear and Royale Energy. This, together with the soon to be spud Halliburton/Great Bear test well, is expected to further confirm the prospectively of Royale's acreage within what the USGS has identified as a 2 Billion barrel shale play.
Year over year growth my kind of play.
First Quarter 2012 Financial and Operating Highlights
Oil and gas revenues increased by 128% year-over-year to $3.6 million, up from $1.6 million in the first quarter of 2011.
Production volume totaled 41,477 barrels of oil equivalent ("boe"), an increase of 91% compared to 21,772 boe in the first quarter of 2011.
Average daily production sold during the first quarter of 2012 was 456 barrels of oil equivalent per day ("boepd") compared to 242 boepd for the first quarter of 2011. The daily average sales rate for March 2012 was 750 boepd.
Adjusted EBITDA increased 277.4% year-over-year to $2.0 million, up from $0.5 million in the first quarter of 2011.
Pacific Energy Acquisition
Acquired Offshore and Onshore Processing and Production Facilities and a Modern Offshore Energy Platform.
Total Cost to Originally Build the Facilities: $300 Million+
Acquired Over 600,000 Lease Acres with Hundreds of Miles of 2-D and 3-D Geologic Seismic Data.
Experienced Operators in Place.
Recent East Tennessee Acquisitions
Miller Energy Resources is the largest owner/operator of oil and natural as wells in Tennessee.
KY-Tenn Oil (KTO)
Asset Acquisition.
177 Wells on 35,000 +/- Lease Acres.
Chattanooga Shale Play with 750 Potential Well Locations.
East Tennessee Consultants (ETC)
377 Potential Producing Wells on 5,000 Lease Acres.
Operating 500 Wells / Producing 100 Wells.
Natural Gas Potential with Pipeline Refurbishing.
Interesting expansion of management. Could mean good things. Prices have been steadily heading back toward $6 all year when most oil stocks are in decline. 2013 should be a winning year IMO.
Miller also announced that it has added Don Raper, an experienced manager who has raised over $2 billion over his career, to its management team as its new Senior Vice President of Finance – Capital Markets. Don brings over 28 years of experience in corporate finance and strategic investment advising to Miller. He comes to Miller from Energy Hunter Securities, Inc., where he was National Sales Director and helped them raise over $280 million from 2003 to 2012.
Mild price drop. Any idea of they plan to become fully reporting with OTCBB? Financial results are encouraging.
HOUSTON, May 25, 2012 (GLOBE NEWSWIRE) -- Blue Dolphin Energy Company ("Blue Dolphin") (OTCQX:BDCO), which acquired Lazarus Energy, LLC ("LE") from Lazarus Energy Holdings, LLC ("LEH") in a reverse acquisition effective February 15, 2012, announced condensed consolidated financial results for the three month period ended March 31, 2012 (the "current quarter") of a net loss of $1,969,894 on total revenue of $46,041,213.
LE's primary asset is a crude oil processing facility located near Nixon, Texas (the "Nixon Facility"), which began operations on a reduced basis in February 2012. For the current quarter, the Nixon Facility operated for a total of 60 days, during which time equipment was calibrated and the refining process was adjusted. The Nixon Facility had no operations during the quarter ended March 31, 2011. Under reverse acquisition accounting, LE (the legal subsidiary) has been treated as the accounting parent (acquirer) and Blue Dolphin (the legal parent) has been treated as the accounting subsidiary (acquiree). Accordingly, the financial statements subsequent to the date of the transaction are presented as the continuation of LE.
As part of the acquisition of LE, Blue Dolphin entered into a Management Agreement with LEH effective February 15, 2012 (the "Management Agreement") pursuant to which LEH manages and operates the Nixon Facility and Blue Dolphin's other operations (the "Services"). Pursuant to the Management Agreement, Blue Dolphin incurred $1,065,606 in operating expenses (approximately $2.86 per barrel) related to the Services provided by LEH for the current quarter. LEH owns 80% of Blue Dolphin's issued and outstanding common stock.
During the current quarter, throughput at the Nixon Facility increased from an initial rate of approximately 7,500 barrels of oil per day to approximately 10,000 barrels of oil per day. Management anticipates that the Nixon Facility may approach its operating capacity throughput of 15,000 barrels of oil per day on a consistent basis during the second half of 2012. Management is working to optimize the Nixon Facility's operations through: (i) the reduction of crude oil and condensate acquisition costs; (ii) the type, yield, quality and consistency of the products produced and (iii) the ability to capture market opportunities through logistics and fine-tuning of an evolving market and customer base.
Blue Dolphin Energy Company (OTCQX:BDCO) is engaged in crude oil and condensate processing, as well as the gathering and transportation and the exploration and production of oil and natural gas. For additional company information, visit Blue Dolphin's corporate website at http://www.blue-dolphin-energy.com.
$44M not bad for 3 days work!
According to their story, Johnson stands to receive up to $44.4 million in severance pay despite having served just three days leading Duke Energy, which recently bought out Johnson's old firm, Progress Energy, to create a utility that will serve more than seven million customers in the Southeast and Midwest.
Interesting article, always a big fan of Fool commentary. The potential for a takeover, your thoughts?
Kodiak has long been seen as a potential takeover target. So far, though, Kodiak has eluded the reach of larger companies, despite its desirable mix of oil and natural-gas liquids. With the much larger Chesapeake Energy (NYS: CHK) trying to shed assets rather than get bigger, Kodiak may well stay independent longer than many have thought in the past.
I would tend to agree with you sort of a dead cat bounce at least. Most oil stocks have been taking a beating as of late losing 20-30 % off oil prices but I think there is merit that is about to change.
Interesting points regarding bankruptcy. Financial results and production coming online could turn this around fast as you pointed out.
Results of Operations
Production in first quarter 2012 was 2.0 MMBoe (million barrels of oil equivalent) of which 63% was oil and condensate, compared to 2.3 MMBoe in the first quarter 2011 of which 68% was oil and condensate. This falls within ATP’s previously-stated expectation of 1.8 – 2.1 MMBoe for first quarter 2012. First quarter 2012 production includes approximately 0.1 MMBoe from a royalty relief adjustment related to 2011 production. Revenues from oil and gas production were $146.6 million in first quarter 2012 including a $3.0 million benefit for royalty relief related to 2011, compared to $166.5 million with no corresponding adjustment for royalty relief in first quarter 2011.
Cash provided by operating activities in first quarter 2012 was $100.9 million, compared to $86.2 million in first quarter 2011. ATP ended first quarter 2012 with a cash balance of $224.7 million, compared to $65.7 million in fourth quarter 2011. ATP’s working capital deficit was $267.9 million at the end of first quarter 2012 compared to a $347.5 million deficit at the end of fourth quarter 2011.
Lease operating expense for first quarter 2012 was $26.9 million compared to $32.4 million in first quarter 2011. Recurring lease operating expense was $23.2 million in first quarter 2012 and $25.0 million in first quarter 2011. The improvement was primarily a result of lower variable expense. Excluded from recurring lease operating expense was workover expense of $3.7 million in first quarter 2012 and $7.4 million in first quarter 2011. The workover expenses in first quarter 2012 were primarily due to hull repair and maintenance work at Gomez Hub, while the workover expenses in first quarter 2011 were primarily due to work at ATP’s Atwater 63 and Mississippi Canyon 711 properties. General and administrative expense was $18.0 million in first quarter 2012, which included $3.8 million of organization and startup costs of operations in Israel and other international prospect generation costs, and $3.7 million of bonuses awarded to executives by the Board. The remaining general and administrative expense of $10.5 million is comparable to the $9.7 million in first quarter 2011. For first quarter 2012, ATP recorded a net loss attributable to common shareholders of $145.1 million or $(2.83) per basic and diluted share compared to $119.5 million or $(2.34) per basic and diluted share in first quarter 2011. The net loss attributable to common shareholders was impacted by items analysts sometimes exclude from published estimates. For first quarter 2012, those items included a gain on abandonment of $0.4 million, impairment of oil and gas properties of $1.2 million, and unrealized losses on derivative contracts of $42.8 million. For first quarter 2011, those items included unrealized losses on derivative contracts of $42.9 million and $18.5 million of drilling interruption costs associated with the Gulf of Mexico moratorium.
Yeah I agree most of the USA had their head in the clouds or at the camp site! I like this management team and the underlying assets so the depressed price is attractive IMO.
Very valid points IMO. Emerging markets will keep a strong demand for oil and improved market economics will also be a driver.
Both of those combined with the fact we are already out of cheap oil and it is costing more to recover such as oil sands / deep sea. This recent pull back has created a great opportunity IMO.
Btw like the signature!
While I have long been a uranium fan I think there is more upside mid-long term in oil. Maybe that is where this money will be focused and what their strategy is. Could make this a great hold for 2013.
Short term reasons I am very bullish on oil:
Investors can enter or begin accumulating a position in crude, as we have potentially seen the near-term market bottom in oil.
Investors can begin legging into a position (for example: taking a 1/3 position every week or at different price points) in case crude oil has not made a near-term bottom.
Implied volatility is low, making long calls an attractive play. Right now the VIX trades in the mid-19 range, making far-dated ITM and OTM options relatively inexpensive.
The trading price of Brent crude oil jumped up to near $93 recently due to a strike in Norway, the world's eighth largest oil producer. The strike is cutting 240,000 barrels of oil per day, and Norway's government is allowing the strike to continue.
According to the same source: "Crude oil futures rose on Wednesday as tighter North Sea supplies and strong U.S. economic data put on the back burner concerns that a European summit would do little to solve the region's debt crisis."
On July 1 the EU places oil sanction on Iran, forcing countries to obtain crude from nations other than Iran.
Nice call, seems to be trending north at this point. Will the momo last?
Selected Highlights for the First Quarter of 2012
Financial and Operational Results
Recognized $8.3 million in revenue during the quarter ended March 31, 2012, compared to revenues of $6.7 million during the quarter ended March 31, 2011, a 24% increase.
Produced 112,036 BOE during the quarter, or 1,231 BOE/D from 45 gross (13.65 net) producing wells at March 31, 2012.
During the three months ended March 31, 2012, we received an average of $2.8 million per month from our producing wells with an average operating cost of $431,000 per month (excluding workover costs), and production taxes of $294,000 before non-cash depletion expense, for an average cash flow of $2.1 million per month from oil and gas production.
On April 10, 2012 the commitment amount for our senior credit facility with Wells Fargo, NA increased to $100 million (from $75 million) and the borrowing base increased to $30 million (from $28 million). At March 31, 2012 we did not have any borrowings under this facility; however on May 1, 2012 the Company borrowed $5.0 million to fund our drilling programs.
At March 31, 2012, the Company had $7.8 million in cash and cash equivalents on hand. Working capital (current assets minus current liabilities) was $11.8 million.
During the quarter ended March 31, 2012 we recorded a net loss after taxes of $381,000 as compared to a net loss after taxes of $2.2 million during the same period of 2011.
In January 2012, the Company sold an undivided 75% of its undeveloped acres in its Yellowstone and SE HR Zavanna leasehold interests for $16.7 million and $1.4 million in reimbursed well costs. The Company retained the remaining 25% interest in the undeveloped acreage and its original working interest and production in ten gross (2.3 net) wells.
The Kalil 25-36 #2H (infill) well was completed with 36 fracture stimulation stages and had an early 24-hour flow back rate of 1,869 BOE/D. The Company has an approximate 27% working interest ("WI") and a 21% net revenue interest ("NRI") in this well.
The Lloyd 34-3 #2H (infill) well was completed with 38 fracture stimulation stages and had an early 24-hour flow back rate of 4,300 BOE/D. The Company has an approximate 14% WI and an 11% NRI in this well. This is the highest initial production rate reported in a Company participated well in the Williston Basin program to date.
The Wang 10-3 #1H well was fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,208 BOE/D on a 36/64" restricted choke during drillout of the plugs. The Company has an approximate 18% WI and 14% NRI in this well.
The Crescent Farms 7-6 #1H well was fracture stimulated with 35 stages and had an early 24-hour flow back rate of 2,437 BOE/D on a 36/64" restricted choke during drillout of the plugs. The Company has an approximate 27% WI and 21% NRI in this well. The Crescent Farms well represents the highest reported IP rate for a Zavanna drilling program well to date.
Got to say having a 52 week over $15 makes this look like an attractive bottom play. Developments continue (as do the law suits :( ) which seem to be positive.
Houston American Energy Announces Test Results on Cachirre #1 Well
Jul 5, 2012 10:05:00 AM
HOUSTON, July 5, 2012 /PRNewswire/ -- Houston American Energy Corp. (NYSE MKT: HUSA) today announced test results on the C-9 sand in the Cachirre #1 well. While the well had heavy oil shows (6.0 to 6.8 gravity), the Cachirre #1 well was unable to produce oil during swab tests and, as a result, will be plugged and abandoned. After plugs are set, the drilling rig will move to the Zorro Gris well location to begin drilling operations on the next well on CPO 4.
About Houston American Energy Corp.
Based in Houston, Texas, Houston American Energy Corp is an independent energy company with interests in oil and natural gas wells and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on Colombia, Texas and Louisiana. Additional information can be accessed by reviewing our Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
For additional information, view the company's website at www.houstonamericanenergy.com or contact the Houston American Energy Corp. at (713) 222-6966 .
I think the recent investors @ $2 a share would tend to agree with your $3-4 buy out statement. Ouch!
HOUSTON, April 18, 2012 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company" or "Lucas"), today disclosed that on April 18, 2012, it closed its previously announced registered direct offering of $5.9 million (approximately $5.5 million net, after deducting commissions and other expenses) of securities to certain institutional investors. In total, the Company sold 2.95 million units at a price of $2 per unit. Each unit consists of one share of the Company's common stock and 0.35 of a warrant to purchase one share of the Company's common stock. Each warrant can be exercised to purchase one share of the Company's common stock at an exercise price of $2.30 per share and will become exercisable after six months from the closing date of the offering and for a period of five years thereafter. A total of 2,950,000 shares and 1,032,500 warrants were sold in connection with the offering.
The Company plans to use the net proceeds received from the offering to pay down expenses related to drilling, lease operating, and workover activities and for general corporate purposes, including general and administrative expenses.
"While we welcome the new institutional investors in this raise, we are also delighted to see that some of our current institutional shareholders are also participating. The proceeds raised will allow us to continue the momentum in our drilling program and expand our work-over activity during 2012," commented William A. Sawyer, President and Chief Executive Officer of the Company. "We are also excited at the potential for receiving additional cash infusions if the warrants sold in the offering are exercised."
Resent dip could offer up buying opportunity. Managements reaction below.
Ivanhoe Energy Responds to Recent Trading Activity
Jul 2, 2012 7:15:00 AM
Close Ad
Management Committed to Deliver on Priorities
CALGARY, July 2, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it knows of no reason for the decrease in the Company's share price late in the trading session on June 29, 2012. There have been no material adverse developments or circumstances with respect to the Company's activities that would explain this sudden drop. Management continues to make steady progress on all of the Company's business initiatives, which will build the foundation for future growth.
The Ivanhoe Energy executive management team have maintained their shareholdings and will increase them over time. This team is committed to the Company's success and remains optimistic that 2012 will see significant progress in many of its projects.
"Our management team remains confident in our ability to grow this Company," said Carlos A. Cabrera, Ivanhoe Energy's Executive Chairman. "Despite the volatility in a number of the financial markets, we are focused and working as a team to deliver results from our world-class assets."
SandRidge CEO Ward on U.S. Oil Drilling Resurgence
http://www.bloomberg.com/video/89783935-sandridge-ceo-ward-on-u-s-oil-drilling-resurgence.html#ooid=tjbHNkNDpTEcu-BxzaGn8M4KsNyIry2v
"no rigs drilling natural gas"
"best rate of return play the Mississippian"
This guy was spot on. Wonder if he shorted it. I predict will trade under $1 within a month and under $0.50 within 2 months.
Source: http://www.otcmagic.com/what-happened-to-circle-star-energy-corp-otc-crcl
I bet Tobin is willing he didn't do the coverage at that time. Price took a nose dive. Now could be a different scenario.
Full Tobin report: http://nbtequitiesresearch.com/sites/default/files/uploads/CRCL_Report_Final.pdf
We are launching coverage of CircleStar Energy, Inc. with a Strong Buy-Speculative Rating at a $7.50 DCF Valuation on 45MM shares (fully diluted) @3,000 BOE daily production by end of 2014 @$75 net revenue per barrel. In the last 45 days, CRCL has secured 71,500 acres in the oil-rich Mississippian Limestone formation (known as the "Mississippian Extension"). In our opinion this Mid-Continent Mississippian Limestone carbonate reservoir is the "next big thing" oily resource play in the rapidly expanding onshore US oil E&P renaissance.
Moreover, we expect leasehold valuations to grow to $8,000-$10,000 an acre by 2014-15 like most major new US onshore oil resource plays of the last ten years which have benefited from new horizontal drilling technologies. $10k per acre market pricing would imply significantly higher CRCL share valuation upon acquisition by mid-size oil E&P or energy trust.
Corporate Summary Circle Star Energy Corp. (the “Company” or “CRCL”) is a publicly listed oil and gas exploration and production company whose shares are traded over-the-counter (OTC: CRCL).
Based in Houston, Texas, the company’s assets include producing and non-producing oil and gas mineral interests, royalty interests, and non-operated working interest located throughout Texas.
Circle Star is focused on acquiring and developing two distinct, complimentary portfolios of oil and gas interests; both portfolios will target basins and fields that generate industry leading financial returns.
1. Non-Operated, Unconventional Portfolio – mineral interest, royalty interest, and non-operated working interest operated by an established, prudent E&P company;
2. Operated, Conventional Portfolio – operated working interest in low-risk fields that are well-understood and contain substantial, proved reserves.
Promotional commentary makes some interesting points.
CRCL: Circle Star Energy Drills A Billion Dollar Opportunity in Kansas
Circle Star Energy Corporation (OTC: CRCL) is an oil and gas exploration & production junior which has got most of its operational properties in Texas but has started expanding beyond its native state, most notably in Kansas.
Frankly, drilling for oil is almost everywhere so what makes Kansas special. Well, the state may be a contender for the United States’ best-kept oil secret. Although Kansas currently ranks among the top ten states in crude oil production, its best is yet to come. With gradually depleting reserves in Texas and advancements in drilling technologies, nearby Kansas is sure to attract a lot of interest of oil firms. Existing players are starting to realize current production is only the tip of the proverbial iceberg and thus, are busy buying land in the state. Sandridge, for example, paid $400 million and scooped nearly 20 million acres of land in Western Kansas 5 years ago and has got a number of wells operating as of now.
Circle Star Energy Corporation (OTC: CRCL) has a market cap of only $76 million but it has got ten oil properties to boast of. Some of these properties are already producing which is pretty much unlike the companies of its size. And it is when the company is far from achieving the full potential. It has got 8 different properties in Texas but the clincher is its huge land holding in Kansas. Till date, it has acquired 71,500 acres of prospective oil and gas interests in western Kansas spanning many counties. Better still, CRCL has started leasing land in some of the counties marked in this map.
These counties are part of either the Central Kansas Uplift or the Extension Mississippian region which between them share a massive oil field (see map below). As seen in the above map, these counties lie in the potentially oil rich ‘Extension Mississippian’ region where many other oil companies are investing capital but Circle Star Energy Corporation (OTC: CRCL) probably has the best prospects thanks to its massive land holding in the region.
While it continues with the exploration in Kansas (CRCL usually operates on an operating basis which minimizes the risk), it has got regular revenue coming in from Texas to fund the next stage of growth. In this sense, CRCL is a perfect blend of operational resources and future potential.
This is good, more capital to move forward. What are the effects of the market though?
Circle Star Energy Announces $750K Equity Raise
May 16, 2012 2:07:00 PM
FORT WORTH, TX -- (Marketwire) -- 05/16/12 -- Circle Star Energy Corp. (OTCBB: CRCL) (the "Company" or "Circle Star") is pleased to announce the raise of $750,000 in equity financing.
Circle Star issued 500,000 units at a price of $1.50 per unit for gross proceeds of $750,000. Each unit consists of one share of common stock of the Company and one half share purchase warrant. Each full warrant may be exercised to acquire one share of common stock of the Company at an exercise price of $2.75 through May 15, 2015.
Circle Star's use of proceeds is focused on payment of debt obligations, acquisition capital needs and/or general corporate purposes.
The units, shares of common, warrants and underlying shares of the financing were not registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws. Accordingly, the shares, warrants and underlying warrant shares are "restricted securities" and may not be offered or sold absent registration or an applicable exemption.
I was impressed to see the work Jeff was doing with CRCL after his departure from CFW. Was wondering if the price was pushing it earlier this year and the pull back seems to indicate that my concerns were warranted or they are undergoing a dilutive funding.
An opportunity could be had if the dilution is curbed or if a bottom can be found based on a reasonable valuation. What do you guys think at this level?
Plans to buy Sunco -finish the pipe line -increase jovs plan to for a high speed railroad -sounds exciting growth rate 93.68% yr over yr div. Could be a good play.
I think this for a 2013 hold but short term could be a great play.
VAALCO facts
Headquarters (Founded): Houston (1984)
Market Cap: $461.6 million
Trailing-12-Month Revenue: $209.0 million
Management: Chairman/CEO Robert Gerry III (since 1997)
CFO Gregory Hullinger (since 2008)
Return on Equity (Average, Past 3 Years): 17.3%
Cash/Debt: $140.3 million / $0
Competitors: Harvest Natural Resources, Hess, Pioneer Natural Resources
Large pull back over the last year has made this one an interesting value buy in this range.
Double Eagle Petroleum Co., an energy company, engages in the exploration, development, production and sale of natural gas and crude oil primarily in the Rocky Mountain Basins of the western United States. The company’s principal properties include the Atlantic rim coal bed natural gas project located in south central Wyoming; the Pinedale Anticline property in the Green River basin of Wyoming; the Wind River basin in central Wyoming; and the Moxa Arch and other areas located in southwest Wyoming. It also holds interest in various properties located in North Dakota, Oklahoma, Texas and Utah. In addition, Double Eagle Petroleum Co. engages in the transportation of gas through its intrastate gas pipeline. As of December 31, 2009, the company had estimated proved reserves of 89.8 billion cubic feet of natural gas and 419,000 barrels of oil. It also owned interests in a total of 1,172 producing wells and had an interest in 359,830 gross acres natural gas prone basins of the Rocky Mountains. The company was founded in 1972 and is headquartered in Casper, Wyoming.
I think that over the next few years as the infrastructure build out in the Williston Basin continues, Kodiak will have the opportunity to grow and become a major player.
The company is not giving any indications that it intends to expand its focus beyond the Williston and risk a Forest-like scenario, nor do its balance sheets indicate funding shortfalls such as are impacting Chesapeake.
Despite its volatility, Kodiak deserves a strong look for growth and future returns.
Cliffs is trading well below its consensus estimates and its 52 week high. The company is trading 52% below its 52 week high and 77% below the analysts' consensus mean target price of $84.50 for the company. Cliffs was trading Thursday for $47.26, up over 1% for the day.
Fundamentally, Cliffs has several positives. The company has a forward PE of 9.44. Cliffs' current net profit margin is 26.16%. The company has a PEG ratio of .61. EPS is expected to grow by 24% next year. The company pays a dividend with a healthy yield of 5.25%.
Interesting action on natural gas lately. Southwestern is trading well below its consensus estimates and its 52 week high. The company is trading 45% below its 52 week high and 37% below the analysts' consensus mean target price of $36.79 for the company. Southwestern was trading
Fundamentally, Southwestern has several positives. The company has a forward PE of 18.33. Southwestern's current net profit margin is 20.76%. The company has a PEG ratio of 1.01. EPS is expected to grow by 24% next year.
Nice call SM, you see the rally continuing? Here is some interesting points to consider.
As record high temperatures stifle the U.S., natural gas exchange traded funds may finally break out of their rut on increasing electricity needs.
The first five months of the year have been the hottest on record across the contiguous U.S., reports Douglas Main for LiveScience. According to the National Oceanic and Atmospheric Administration, over 40,000 daily heat records have been broken year-to-date. In June, 164 all-time high temperature records were tied or broken.
Jake Crouch, a climate scientist with National Climatic Data Center, noted that this is quite unusual, given that the summer heat typically turns up over July and August.
The rising temperatures may also be a new trend. For instance, over the last few years, daily record high temperatures have been outpacing daily record lows by two to one on average, according to Climate Central.
"This could be a harbinger of things to come," Jeff Weber, a scientist with the University Corporation for Atmospheric Research, said in the article.
Meanwhile, the U.S. Natural Gas Fund (UNG) has jumped almost 20% over the past three months as natural gas spot prices rallied from below $2 per million British thermal units.
Natural gas futures were trading at about $2.90 Thursday.
Currently, natural gas has slowed after the Energy Information Administration revealed that gas inventories increased higher than expected, according to Business Insider.
"The net injection to U.S. natural gas storage was more than the consensus expectation and suggests a slight weakening in the market's underlying supply-demand balance," Citi Futures Perspective analyst Tim Evans said.
According to the EIA, natural gas inventories rose 57 billion cubic feet for the week ended June 22, with storage levels at 75%. Stocks were 653 billion cubic feet higher year-over-year over the same period and 613 billion cubic feet above the 5-year average.
Anybody holding this play? Seems like it may want to test the $0.60 level again.
Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. The Company's oil and gas assets and activity are concentrated primarily in the Haynesville Shale Play located in Northwest Louisiana. Additional information can be found on Cubic's website at: www.cubicenergyinc.com.
Watch California for price moving developments.
Willow Springs
In Gasco's Willow Springs Prospect, the partners have completed testing the deepest objective in this well bore which features additional up-hole pay potential. Oil was produced from the deepest objective, however, hydrocarbon quantities were deemed uneconomic. There is a completion rig on location which is preparing to move up the well bore to test the next potential pay horizon. Testing of the deepest objective did confirm the presence of a structure which helps confirm the Company's geologic model. Initial wireline log analysis indicated potential additional zones of interest uphole. Testing in the next pay horizon should be undertaken in the near future. Gasco looks forward to updating investors on the well's progress when it receives further information.
"The initial Willow Springs exploratory well has the potential to encounter various pay horizons," said King Grant, Gasco's President and CEO. "The deep results do not condemn the deeper horizon, instead they confirm a structural trap which is consistent with our belief that hydrocarbons are present and exist in structural traps in deeper parts of the San Joaquin Basin. We are encouraged by the uphole pay potential in the current well bore, and by the information gained from the initial well."
NW McKittrick
The operator of the NW McKittrick shallow oil prospect has advanced the permitting process with the applicable California state and US federal agencies. Spudding of the first well, based upon final permit approval, is expected to occur later this year.